This study aims to analyze the improvement of the welfare of cooperative members in a sustainable manner, which is influenced by the development of business strategies and the competence of members. The research was conducted at women's cooperatives in East Java Province, Indonesia. The research design uses a quantitative approach. Respondents in this study are members of active women's cooperatives who have their own businesses from cooperative capital. The questionnaire was distributed by directly meeting respondents or via email among 185 respondents who were members of active cooperatives. SEM analysis was used to determine the effect of competency variables on improving member welfare mediated by business strategies. The results of this study indicate that the welfare of cooperative members was largely determined by the competence of cooperative member business actors, but this welfare improvement will be more effective if business actors understand and implement business strategies even though on a small scale.