COOPERATIVES MEMBERS CAN SAVE MONEY AND MAKE MONEY ALSO

COOPERATIVES MEMBERS CAN SAVE MONEY AND MAKE MONEY ALSO

Cooperatives in the Philippines play a crucial role in economic empowerment, financial inclusion, and social progress. Yet, many Filipinos still ask: "Are cooperatives truly beneficial? How do they help members save and earn money?" Let's explore the opportunities and challenges facing cooperatives today.

What Exactly Are Cooperatives?

Cooperatives are member-owned organizations that pool resources to provide goods and services at better rates. They exist in various sectors, including agriculture, transportation, electricity, and finance. But here’s an important question: Are transport cooperatives considered real cooperatives? The answer is yes! Transport cooperatives, such as jeepney and tricycle operators' coops, function like any other cooperative—by pooling resources, sharing profits, and providing benefits to members. Transport coops are under the Office of Transport Cooperatives (OTC) and not the Cooperative Development Authority (CDA).

As of 2023, there were over 104,950 registered cooperatives in the Philippines, according to the CDA. But what about electric cooperatives—are they included in this count? Many electric cooperatives operate under a different regulatory framework but still adhere to cooperative principles. Electric coops are under the National Electrification Administration (NEA) and not the CDA.

How Can Cooperative Members Save Money?

One of the biggest benefits of joining a cooperative is the ability to save money through:
Lower Costs on Goods and Services – Buying in bulk or as a group means cooperatives can negotiate better prices for members.
Dividends and Patronage Refunds – Members receive a share of the cooperative's profits at the end of the year.
Affordable Loans – Credit cooperatives provide low-interest loans compared to traditional banks.

How Can Cooperative Members Make Money?

Cooperatives also provide earning opportunities through:
Profit-sharing – Members get a share of the coop’s net income.
Business Ventures – Many multipurpose cooperatives run businesses in agriculture, transport, retail, and finance.
Employment Opportunities – Cooperatives hire members, giving them stable incomes.

What is the Total Number of Cooperative Members in the Philippines?

Would you believe that practically one out of every ten Filipinos is a member of a cooperative? The latest figures suggest that around 10.7 million Filipinos are actively involved in the cooperative movement.

Are Cooperatives Considered SMEs?

Small and Medium Enterprises (SMEs) and cooperatives share similarities, but they operate differently. Some coops function like SMEs, but cooperatives focus more on member welfare rather than pure profit.

Are LGUs Required to Support Cooperatives?

Under Republic Act 7160 (Local Government Code of 1991), Local Government Units (LGUs) are encouraged to promote cooperative development. However, a key question arises: Should cooperative offices be separate from SME development offices? Many argue that they should, as cooperatives operate on a unique set of principles compared to regular businesses.

Who Are the Big Players in the Cooperative Sector?

🔹 NATCCO (National Confederation of Cooperatives) – A major secondary cooperative that focuses on training, education, and financial services.
🔹 Philippine Cooperative Center (PCC) – An umbrella organization that represents cooperatives at the national level.

But what about tertiary cooperatives? An example of a tertiary cooperative in the Philippines is the Philippine Cooperative Center (PCC), which serves as an advocacy body for cooperatives nationwide.

How Do Multi-Purpose Coops Differ from Regular Coops?

A multi-purpose cooperative offers diverse services like credit, consumer goods, and business support, while a regular cooperative focuses on a single function, such as savings and loans.

What Are the Best Practices of Cooperatives in Other Countries?

Countries like Spain, Japan, and Canada have strong cooperative movements. Some best practices include:
Government Support – Spain’s Mondragon Corporation thrives due to policies supporting worker cooperatives.
Technology Integration – Cooperatives in Canada use digital banking and e-commerce platforms to serve members better.
Sustainability Initiatives – Japanese agricultural cooperatives promote eco-friendly farming and supply chain efficiency.

Final Thoughts: The Power of Cooperatives

Cooperatives empower Filipinos to save money, earn income, and build stronger communities. However, there’s still room for improvement. Should the government do more to support cooperatives? Should local offices be separate from SME offices? These are questions that policymakers need to address.

One thing is certain: the cooperative movement in the Philippines is growing stronger, and with proper support and innovation, it can play a key role in the country’s economic future. Are you ready to join a cooperative today? Let me know.

Ramon Ike V. Seneres, www.facebook.com/ike.seneres
iseneres@yahoo.com, 09088877282, senseneres.blogspot.com

02-27-2025

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