Co-op vs Collective

Some things they have in common: In both, members buy in or contribute capital, decisions are made democratically (often 1 member = 1 vote), profits are shared among members or reinvested and it can be consumer, producer, or worker-owned. 

While both are member-owned and member-governed, a co-op is run as a legally recognized business. A collective is generally described as a group of people working together toward a common goal.   A co-op is run almost like a non-profit in having a board, articles of incorporation, and such,  a collective may or may not be legally incorporated.

  A co-op generally features include a more formal structure (typically registered as a business entity), collectives are generally less formal and/or have more flexible structuring. Co-ops are general run by boards and such, collectives offer non-hierarchical leadership as decision-making is consensus-based.  

 And the biggest difference: A co-op focuses almost solely on financial benefit of its members. And while collectives focus on financials as well, they tend also stress collaboration, community, and mutual support of each other as part of their business plan.