Economic Stability
Capital and the Debt Trap reports that "ooperatives tend to have a longer life than other types of enterprise, and thus a higher level of entrepreneurial sustainability. In, the rate of survival of cooperatives after three years was 75 percent, whereas it was only 48 percent for all enterprises ... after ten years, 44 percent of cooperatives were still in operation, whereas the ratio was only 20 percent for all enterprises." (p. 109) "Cooperative banks build up counter-cyclical buffers that function well in case of a crisis," and are less likely to lead members and clients towards a debt trap.(p. 216) This is explained by their more democratic governance that reduces perverse incentives and subsequent contributions to economic bubbles.
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