Cooperative Businesses

Authors: Brian Henehan, Cornell University, bmh5@cornell.edu, and Bruce Anderson, Cornell University

Reviewers: Gerald White and Brent Gloy, Cornell University

Organizational Characteristics

Probably the most widely known and proven of collaborative business organizations are cooperatives. They are usually formed of many entities and are legally constituted, limited liability corporations controlled by their members. Cooperative members are often in the same industry and have common economic interests that may involve joint marketing, purchasing of supplies and/or the providing of services.

Most …

General Causes of Business Failure

Authors: Brian Henehan, Cornell University, bmh5@cornell.edu, and Bruce Anderson, Cornell University

Reviewers: Gerald White and Brent Gloy, Cornell University

First, we will take a look at some of the causes of business failure in a specific industry sector–agriculture, forestry and fishing. The Economic Analysis Department of the Dun and Bradstreet Corporation collects and analyzes data on business failures. Table 3 categorizes the common causes of business failure including: economic factors, finance, experience, neglect, disaster, fraud and strategy.

Table 3. Causes …

New Cooperative Development

 

B. Henehan.

Authors: Brian Henehan, Cornell University, bmh5@cornell.edu, and Bruce Anderson, Cornell University

Reviewers: Gerald White and Brent Gloy, Cornell University

Summary: There is increased interest in economic alternatives as individuals try to adopt needed technology and compete in today’s dynamic global markets. The cooperative organizational structure may offer a viable alternative. New cooperative development requires strong commitment and leadership from the potential members and a number of other stakeholders to result in the creation of an effective,

Unique Causes of New Cooperative Failure

Authors: Brian Henehan, Cornell University, bmh5@cornell.edu, and Bruce Anderson, Cornell University

Reviewers: Gerald White and Brent Gloy, Cornell University

New cooperatives can be prone to a number of unique business problems. The primary goal of new cooperatives is to help address the economic problems of members or seize new opportunities. If these problems are due to overall weaknesses in the industry that members operate in, the new cooperative may begin its life in a more hostile economic environment than other …