capitalisation of co-operatives

Capitalization of co-operatives refers to how these organizations acquire and manage their financial resources. Co-operatives raise capital through member contributions, such as shares or investments, and sometimes through loans or external funding. Unlike traditional businesses that seek profit for shareholders, co-operatives operate to serve their members' needs, and profits are often reinvested or distributed among members. Proper capitalization ensures the co-op has enough funds to operate, grow, and provide services. It balances member investments with internal funding strategies, promoting financial stability while maintaining a focus on cooperative principles.