The Beginnings of Cooperatives
“Alone we go faster, but together we go further.”
This timeless proverb captures the essence of cooperatives — enterprises built not on competition but on collaboration, mutual aid, and shared prosperity. As the world grapples with economic inequality, ecological collapse, and social fragmentation, cooperative models are being rediscovered as tools for resilience and regeneration. But where did cooperatives come from? How have they evolved? And what can we learn from the most successful examples?
Roots in Resistance: The Birth of the Cooperative Movement
The cooperative idea is ancient — mutual aid societies have existed in many Indigenous and traditional communities. But the formal cooperative movement took root in 19th-century Europe as a response to the exploitative conditions of the Industrial Revolution. New large industries relied on unfair labor practices in order to meet production quotas. Employees lost control over working conditions; low pay, long hours, unsanitary workplaces, and no mechanisms for claiming worker rights added to the growing frustration among labourers. The situation demanded new forms of organisation that retained old modes of production while providing economic security for individual producers.
The most well-known origin story is that of the Rochdale Pioneers in 1844 in northern England. A group of 28 weavers and artisans, struggling to afford basic goods, pooled their resources to open a community-owned store. They sold food at fair prices, shared the profits among members, and introduced seven principles that still guide cooperatives today — including democratic control, economic participation, and concern for community. Since the time of the Rochdale pioneers, the formation of cooperatives has continued and the notion of cooperative organisation has reached many regions of the world.
The global rise of cooperatives is partially due to the work of the International Co-operative Alliance (ICA). The ICA was formed in 1895 by E. V. Neale of Rochdale and Edward Owen Greening, a supporter of worker cooperation, in order to “end the present deplorable warfare between capital and labour and to organise industrial peace, based on co-partnership of the worker … [and to] promote the formation of central institutions for helping people to establish and maintain self-governing workshops,” writes Johnston Birchall in The International Co-operative Movement.
Neale and Greening recognised that coops had the power to combat the emergent market trends by empowering workers to own a share of the business and to govern themselves. They also realised that a worldwide organisation that could support the mission of employee-owned business would help promote solidarity and their continued existence. Neale and Greening founded the ICA on the principles under which the Rochdale coops had been successfully operating for 50 years prior to the ICA’s inception.
By the late 19th and early 20th centuries, cooperatives had spread across Europe, North America, and beyond — from credit unions and housing co-ops to worker-owned factories and agricultural collectives.
Notable Cooperative Successes
1. Mondragon (Spain)
Founded in the Basque region of Spain in 1956, Mondragon began with a small worker-owned factory producing paraffin heaters. Today, it is a federation of more than 95 cooperatives employing over 80,000 worker-owners across manufacturing, finance, retail, and education.
2. Co-operative Bank (UK)
Founded in 1872, the Co-operative Bank was owned by its members until recently and remains rooted in ethical banking. It pioneered customer-led ethical policies, such as refusing to finance fossil fuels or weapons manufacturing.
3. Seward Community Co-op (USA)
This Minneapolis-based food cooperative has prioritised racial equity in hiring and governance, expanded access to healthy local food, and reinvested profits in the local economy.
4. Coop (Italy)
With over 6 million members, Coop is Italy’s largest supermarket chain. It operates with consumer ownership and is legally required to reinvest profits into the community and price stabilisation.
5. Fonterra (New Zealand)
A farmer-owned dairy cooperative, Fonterra is one of the world’s largest dairy exporters. Its cooperative structure ensures farmers share both the profits and decision-making power.
✊ Why Cooperatives Matter — Now More Than Ever
In a time of economic precarity, climate disruption, and corporate consolidation, cooperatives offer:
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Local resilience: Rooted in place, cooperatives circulate wealth locally.
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Democratic economy: Members control decisions, not distant shareholders.
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Inclusive development: Co-ops prioritise access, equity, and empowerment.
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Long-term thinking: Profits aren’t extracted — they’re reinvested in people and planet.
Final Thoughts
The cooperative model isn’t a silver bullet — co-ops face challenges of scale, funding, and governance. But their track record shows that when people come together with shared values and vision, they can build thriving, democratic economies.
As we look to regenerate our communities and economies, the question isn’t whether cooperatives work. It’s: what’s stopping us from starting more of them?