Why are they formed in times of economic distress?

During times of economic distress, individuals and communities often face financial hardships, job losses, and uncertainty, leading to a greater need for support and resources. In response, organizations such as charities, cooperatives, or mutual aid groups are formed to address these challenges by providing assistance, fostering solidarity, and sharing resources. These initiatives can help individuals navigate tough economic conditions, build resilience, and create a sense of community in times of crisis. Such formations often emphasize collaboration and mutual support as a means to cope with adversity.