A cooperative (also co-operative or coöperative; often referred to as a co-op or coop) is defined by the International Co-operative Alliance's 1995 Statement on the Co-operative Identity as an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.

The South Africa Co-operatives Act No 14 of 2005 describe a co-operative as an autonomous association of persons united voluntarily to meet their common economic and social needs and aspirations through a jointly owned and democratically controlled enterprise organized and operated on co-operative principles;

It is a business organization owned and operated by a group of individuals for their mutual benefit.

A cooperative may also be defined as a business owned and controlled equally by the people who use its services or who work at it.

Cooperatives as legal entities

A co-operative is a legal entity owned and democratically controlled equally by its members. A defining point of a cooperative is that the members have a close association with the enterprise as producers or consumers of its products or services, or as its employees.

Such legal entities have a range of unique social characteristics. Membership is open, meaning that anyone who satisfies certain non-discriminatory conditions may join. Economic benefits are distributed proportionally according to each member's level of participation in the cooperative, for instance by a dividend on sales or purchases, rather than divided according to capital invested.

Co-operative Values

Cooperatives are based on the co-operative values of

· Self-help,

· Self-responsibility,

· Democracy

· Equality,

· Equity and

· Solidarity"

Also, in the tradition of their founders, cooperative members believe in the ethical values of

· Honesty,

· Openness,

· Social responsibility and

· Caring for others.

Co-operative Principles

There are seven co-operative principles namely:

· Voluntary and open membership;

· Democratic member control;

· Member economic participation;

· Autonomy and independence;

· Education and training;

· Co-operation among co-operatives; and

· Concern for community