The starting point for the cooperative idea was the issue of environmental sustainability. To support rapid population growth in the nineteenth century, agriculture became more intensive, precluding natural regeneration of the land. The consequences were falling yields and crop failures, plunging large swathes of the rural population into bitter poverty.

Friedrich Wilhelm Raiffeisen, one of the originators of the cooperative idea, saw a solution in the provision of low-priced loans and advantageous investment opportunities for farmers. The aim was to enable farmers to purchase agricultural equipment, fertilizers and livestock.

Raiffeisen established two charitable associations, within which wealthy citizens could make loans available to needy farmers. However, these associations did not provide charitable citizens with sufficient incentive to make a long-term commitment and the associations soon transformed into self-help organizations. The members then provided each other with mutual assistance. It was in this way that the idea of the modern cooperative found its way into rural communities. Hermann Schulze-Delitzsch had developed this idea a few years previously in order to assist craftsmen suffering from the impact of industrialization.

Subsequent years saw the establishment of further cooperative banks, which contributed to long-term economic development among farmers, craftsmen and other tradesmen. Farmers were able to purchase fertilizers to restore nutrients to the soil, and craftsmen and tradesmen received loans enabling them to invest in their businesses. It was felt that the successful elimination of economic hardship on a long-term basis in these population groups would soon be seen to be an important contributing factor in the resolution of the "social issue".