Szövetkezet

A szövetkezet is a Hungarian term referring to a cooperative. It is a form of business organization owned and run by its members, who share in the profits and losses. Members can be individuals, businesses, or other organizations. The primary purpose of a szövetkezet is to serve the common economic, social, or cultural needs and aspirations of its members. This is achieved by jointly owning and controlling the enterprise. There are various types of szövetkezetek, including agricultural cooperatives, consumer cooperatives, housing cooperatives, and credit unions. Each type focuses on a specific area of member needs. The operation of a szövetkezet is typically governed by democratic principles, with each member having an equal vote, regardless of their capital contribution. Profits generated are usually distributed among members based on their participation or patronage, or reinvested back into the cooperative. Szövetkezetek play a significant role in many economies, fostering collaboration and mutual support among their members.