A cooperative is a business or organization owned by and operated for the benefit of those using its services. Profits and earnings generated by the cooperative are distributed among the members, also known as user-owners.
Typically, an elected board of directors/Union members and officers run the cooperative while regular members have voting power to control the direction of the cooperative. Members can become part of the cooperative by purchasing shares, though the amount of shares they hold does not affect the weight of their vote.
Somali Cooperatives most common are:
- Agriculture cooperatives union;
- Fishery cooperative union;
- Livestock, forestry and incense cooperative union;
- Small industries and handcraft cooperative union;
- Transportation and construction cooperative union;
- Consumer and service cooperative union.