Cooperatives are a people's economic institution that plays a vital role in improving community welfare through the principles of togetherness, economic democracy, and member participation. However, Generation Z's interest in cooperatives in Indonesia remains relatively low. This study aims to analyze the factors contributing to Generation Z's low interest in cooperatives and to examine the role of innovation and digitalization in increasing young people's participation in cooperatives. This study used a literature review method by reviewing various relevant literature sources, such as scientific journals, articles, and previous research results. The results indicate that Generation Z's low interest is influenced by a lack of understanding of cooperatives, a perceived conventional image of cooperatives, minimal use of digital technology, and suboptimal promotion through social media. On the other hand, innovation and digitalization have been shown to increase the attractiveness of cooperatives through easy access to services, transparency, operational efficiency, and interactions that are more in line with Generation Z's characteristics. In addition, social and psychological factors also influence the level of participation of young people in cooperatives. Therefore, cooperatives need to undertake digital transformation, improve innovation services, and strengthen social media-based education and promotion to remain relevant and able to attract Generation Z's interest in the modern era.
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