2025 has been designated the “International Year of Cooperatives” by the United Nations, and our firm is committed to educating the public and the business community about how cooperatives can create more equitable, inclusive, and sustainable economic opportunities. So why are cooperatives increasingly recognized as a powerful vehicle for building economic justice and a better world?

Cooperatives are democratic business models that empower historically marginalized communities, workers, and entrepreneurs to build collective wealth, ensure living wages, and have an equal voice in decision-making. This model is particularly powerful for addressing systemic economic inequalities and creating pathways to ownership for communities that have traditionally been excluded from business ownership opportunities.  If a group is interested in housing for senior citizens, or obtaining better pricing from vendors for small businesses in the same industry, or leasing studio space for artists, they can go to the cooperative business model for solutions. Some examples of cooperatives might be: a small specialty auto parts dealer may be owned by the employees who work there. Or, a rural telephone or electric company may be owned by the customers who purchase telephone service. A group of consultants may band together to provide a holistic set of services through a marketing cooperative. Or a group of companies may seek better prices through a purchasing cooperative. All of these cooperative businesses have one thing in common. They are created and operated for the benefit of their member owners. People have come together as a group to find a business solution for their needs that may not be possible if they were working alone.

Colorado, widely recognized as “the Delaware of cooperative law”^TM (as coined by our law firm), leads the nation with its extremely useful and flexible statutes designed for creating cooperatives, whether a cooperative corporation, a limited cooperative association, or a housing cooperative, and public agencies that understand how cooperatives operate, their benefits, as well as their challenges. Cooperative businesses have been created in this state and in many other states in industries that vary from retail operations, agriculture, service businesses,  manufacturing, utility companies and even banking (credit unions are a form of cooperative entity). Recognizable big names are REI (a consumer cooperative), Land O Lakes (an agricultural cooperative), Dairy Queen franchisees who formed a purchasing cooperative and many more. Then there are the smaller worker cooperatives who play a vital role in ensuring continuity of a business when a former owner retires. The employees become owners, the business and its tax base stay in the community, and it’s a win-win for everyone.  These are just a few ways where cooperatives are building better communities.

Cooperatives are not suitable for all businesses, such as those that are owned by just a few people who do not have an interest in sharing decision making, governance, operational management or control. But cooperatives are excellent vehicles for small business owners who want to retire knowing the company they created will continue to exist. Cooperatives are excellent models for BIPOC (Black, Indigenous, and People of Color) communities, immigrant entrepreneurs, and other historically excluded groups to create jobs and build ownership in industries where traditional barriers to entry have perpetuated economic disparities. This model has proven particularly effective in helping communities build intergenerational wealth and economic resilience. Ownership of a business is a way to build wealth while simultaneously enjoying the profits and income streams created by that business.

Over 34 Million small businesses in the U.S. employ over 56 Million workers. Over 99% of all U.S. businesses are categorized as “small”, employing less than 500 workers. Now imagine a world where even 10% of those businesses are cooperatively owned and operated.  Imagine a world where more than 5 million workers can become owners, creating wealth for themselves and for future generations. Imagine a world where entrepreneurs from all backgrounds and communities are recognized as creative builders and business leaders, where cooperative ownership helps close the racial wealth gap, and where economic democracy becomes a reality for historically disadvantaged communities. This is all possible with the cooperative business model and 2025 will be the year where more people will become aware of ways to help their dreams come true, building cooperatives.