This section is from the book "Elementary Economics", by Charles Manfred Thompson. Also available from Amazon: Elementary Economics.
Cooperation is, by its very nature, more successful in some industries than in others. Retailing appears to offer the best opportunity: a relatively small amount of capital is required; no great amount of enterprising skill is necessary; and those interested come in contact with it daily. Cooperative manufacturing, however, is a more serious matter. Here must be settled important questions, such as the hiring of labor, changing the character of the product, and seeking new markets. To answer these questions successfully the hired manager must have such skill and ability as to attract the attention of competing manufacturers, who would either get him away or force the cooperative concern to raise his wages to a point where profits would be endangered. Moreover, the risks involved in retailing are comparatively small, so that the members of the association can very well afford to carry them. The largest of the English retail cooperative societies - the Rochdale Stores - has not attempted to establish its manufacturing business on a cooperative basis, largely because of the impracticability of the scheme.
 
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