What is a Co-operative?

Co-operatives are an ownership solution that empowers members that normally have no control in other business structures. This sense of ownership unlocks levels of knowledge sharing, commitment and involvement that no other business structure can provide. Co-operatives unite business success and social inclusion through ownership.

We are often too reliant on a few known business structures, the most challenging and hazardous is the sole proprietorship and partnerships where the total responsibility (unlike major corporations), fall directly onto the owner/s. If the business is a direct result of the inability to find employment many of these new small business owners, skilled as they are in their area of expertise, may lack either the finance or? know how? of running a small business. Inevitably, the results are the closure of the business in a relatively short period, possible loss of assets and increased hardships for them and their families.

Getting together works.

Combining the action of entrepreneurs and small businesses, (for instance in securing credit or opening up larger marketing opportunities), co-operatives can often become more effective than the individual. Co-operatives can provide purchasing power that an individual business may never be able to access. To meet the common needs of their members, co-operatives can provide benefits through the provision of shared services information, guidance and advice. For many, co-operatives are linked with rural activities, yet there are extremely viable, thriving co-operatives worldwide that stretch from the voluntary sector to the mainstream economy. Some of the top corporations listed in Forbes 1000 top companies in the US today are in fact co-operatives. They are usually less visible than other businesses as they do not advertise their co-operative identity.

The Co-operative Principles - Co-operatives Act 1997 (current Australian)

Voluntary and open membership

Co-operatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.

Democratic member control

Co-operatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary co-operatives members have equal voting rights (one member, one vote) and co-operatives on other levels are organized in a democratic manner.

Member economic participation

Members contribute equitably to, and democratically control, the capital of their co-operative. They usually received limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any if or all of the following purposes: developing the co-operative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the co-operative; and supporting other activities approved by the membership.

Autonomy and independence

Co-operatives are autonomous; self help organizations controlled by their members. If they enter agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their co-operative autonomy.

Education, training and information

Co-operatives provide education and training to their members, elected representatives, managers and employees so they can contribute effectively to the development of their co-operatives. They inform the general public, particularly young people and opinion leaders, about the nature and the benefits of co-operation.

Co-operation among co-operatives

Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures.

Concern for the community

While focusing on member needs, co-operatives work for the sustainable development of their communities through policies accepted by their members.

Co-operatives can only work effectively through member loyalty and time and time again in successful co-operatives this unlocking of value through ownership does happen. There is nothing new about co-operatives, they came to prominance within the craft industry in the 1970's however, many failed, not because of the lack of dedication but due to limited information, business knowledge and support.

What I am asking you to consider, is the possibilities of shifting away from developing individual business startups to that of developing a co-operative that can make a difference.

Co-operatives are working in every major world economy in areas of enterprise, agriculture, housing, finance, employee ownership, employment generation, regeneration, community involvement and the welfare sector. If co-operatives work on a worldwide scale, then why not here?

For many of you, the future offers limited, if any opportunities, but at times, having access to skills, resources or knowledge may be the key to taking advantage of these opportunities and so take control of your own future with pride and dignity.

Co-operatives are not new; they are "A proven concept for new challenges."