Entrepreneurial business cooperatives are model which is spread all around the world. Today in the world of global capitalism cooperatives should be an example to the others forms of entrepreneurial association. The cooperative model proved that it is possible simultaneously achieve economic sustainability but also social responsibility. Activity of the co-operative is based on specific co-operative principles of which democratic participation is the most famous feature of the cooperative business and is the main difference in the separation of cooperatives from companies owned by the investor. The principle in which each member has the right to vote encourages the adoption of better business decisions and strengthens community relationships. Croatian center of entrepreneurial business cooperative entrepreneurship is public institution which has task to represent and harmonize different intrests of alliance, which means they work on every business activities which can possibly improve and develop entire entrepreneurial business cooperative. Based on the research of entrepreneurial business cooperative "Vinkovačka šparoga", which has been done in purpose of this work, we can conclude that cooperatives has both positive and negative effects. The main advantages of this entrepreneurial business cooperative are their quality and recognition of its products on market, while the main disadvantage is difficult purchase of contemporary equipment and machinery.