In the recent financial crisis period, when traditional economic organizations were not able to meet stakeholders’ expectations, not-for profit organizations such as cooperatives became an optimal solution as they are expected to serve social and economic performance simultaneously. This theoretical assumption is questioned based on the downturn pressures that may weaken cooperatives’ social performance in favor of economic performance. This degeneration process is countered by some traditional cooperatives that have developed regeneration dynamics. The aim of our study is to explore how small and medium cooperatives face degeneration and develop regeneration dynamics in periods of crisis. To fulfill the objective of the article, four small and medium Basque and Breton cooperatives are studied in depth.