The Cooperation as Business Institution

What is Cooperation?

Organization of a group of people who have the same interests with the goal of welfare for its members.

What is Business Institution?

Organizations that combine and coordinate resources for the purpose of manufacturing and producing goods or services.

Cooperative is an economic movement that is based on a family basis. Cooperatives in Indonesia has grown rapidly due to the members comprised of the general public have to know the benefits of the establishment of cooperatives, which can help the economy and develop the creativity of each member. In addition, the cooperative also can be said as a business organization for cooperative activities that occur in nature generate a profit or profits in general be a goal of a business organization.

Business organization is an organization that combines and coordinates the resources for the purpose of manufacture and produce goods or services. Conceptually, the Cooperative as a Business Organization entrepreneurs who hold a weak economy, have some potential advantages to participate solve social problems - the economy.

To build a business organization, the business environment is also required. The business environment is one of the activities that will be undertaken in the form perbisnisan someone in a business, where in the business we are in demand to run or manage a business with his best of every person must have the desire and establishing the right of a business and one that must be willing to live her business to success.

Cooperative as a business organization so that:

• Subject to the rules and principles of economics that apply
• Able to generate profits and to develop the organization and its business
• Members as the owner and user of services
• Requires a business management system (financial, technical, organizational and information)

Role of Cooperatives in the National Economy

Cooperatives as an economic institution formed of, by and for its members is expected to provide business development opportunities and in particular the members of the surrounding community at large in order to improve the economic and social welfare. A cooperative economic organization that is distinct (has distinctive characteristics), with the corporate philosophy, corporate culture (cooperative business practices must be able to present the values ​​that were able to grow and thrive in a competitive market environment).

Values ​​inherent in the organization and management of cooperatives is the ability to self-help, democratic management, justice and solidarity, with values ​​above suggests that the cooperative as an organization is capable of self-help (selfhelp organization) must have a clear economic objectives and togetherness management (Joint management) are professional, so that cooperatives can put functions and its role as a strategic economic institutions in developing the economic potential of the people, because the cooperative is a business entity related to the life and economy of most of the people were scattered throughout the county, town and village in Indonesia, which covers almost all types of existing business fields.

Cooperative potential in the market system requires and in any business plan or utilize the maximum benefit so that companies can make a profit or of net income that is able to hold reserves in order to further business development. In order for companies to compete companies must conduct market orientation to be able to excel in the competitive market competition.

Cooperative has two markets:

• Internal Market, in which the direction of the distribution of goods addressed to the cooperative members.
• External market, is a market demonstrated outside the members or to the public. Cooperative acts as a supplier or call the marginal cost and supply Coorperative equal to the revenue. Cooperative will choose determines the price based on the price at cost with no more shortage.Koperasi have a great opportunity in terms of pricing than the market because it does not hold on to the position of maximum profit.

Purpose Cooperative Company

The main purpose of cooperatives focused on improving the welfare of its members and the public, it is clearly seen in Article 3 of Law No. 25 of 1992 on
Cooperatives, said that the cooperative aims to promote the welfare of members in particular and the society in general and to help build the national economy in order to realize an advanced society, just and prosperous based on Pancasila and the Constitution of 1945.

To achieve this, although not as an organization cooperative associations profit-oriented capital, but capital is an important factor to achieve this goal in addition to factors other resources. Not that did not attempt to achieve cooperative maximum profit, as a business entity, the cooperative aims to make a profit that can serve as a tool to achieve the ultimate goal.

Cooperative goals as a company or business entity is not solely only on the orientation of earnings (profit-oriented), but also on the orientation of the benefits (benefit oriented). Therefore, in many cases co-operatives, co-operative management of non-profit as the company's goals as they work based on the service (service at cost)....

Cooperative is an institution that should be managed as befits the institution. Businesses. In a business organization required an effective management Known and efficient management.

Likewise in cooperative enterprises, management is a right that must exist in order to realize the desired objectives.

Cooperatives are people based and not based capital as a conventional business organization or company. Cooperative organizations often turn out to be a bunch of capital even openly cooperative play often proceeds from fees or deposits cooperative members, but it is running or distributing third-party capital (bank)

In addition to the cooperative institutions that have been known, at this time also developed institutions Baitul Maal wat Tamwil (BMT) is an agency supporting small economic activities under (low income) with an economic system based on Islamic Sharia. Legal Entity of BMT BMT can be cooperative for those who have had a wealth of more than USD 40 million and has been prepared by the administration to be a healthy cooperative in terms of cooperative and good management, analyzed in terms of worship, practice shalihan officials who have managed BMT Islam.Sebelum Sharia legal status of cooperatives, BMT can be shaped as SHGs (Self Help Groups) that can serve as a pre cooperative.

The Conclusion:

Cooperatives can be regarded as a business organization because of the cooperative nature yangterjadi activities generate a profit or profits in general be a goal of a business organization. But in fact the potential of cooperatives in the market system requires effort and planning into each gain or exploit the maximum so that companies can make a profit or of net income that is able to hold reserves in order to further business development....

Understanding, co-operative is not a business organization, although the implementation expects profit. But the profit is distributed to members of the SHU (Business Profits). Running now, the cooperative has forgotten what its primary purpose. Many of the cooperatives in Indonesia indirectly to business organizations by certain elements. So we see in terms of implementation, cooperatives and business organizations actually almost the same.