What makes cooperatives successful

What it means to explore an opportunity. A key ingredient in developing a successful co-operative, like any business or organization, is vision and entrepreneurship: someone or a group of someones who understands the goal of the organization, where it needs to go, and — perhaps most importantly — who has the energy to help get it there.

Every co-op needs a champion. This person is a leader. They take charge and see opportunity where others see barriers. While they may not know exactly how to get to the finish line, they can see it nonetheless and are willing to think creatively and organize others to help reach it. Find this person or be this person. Otherwise, you will struggle to find clarity of purpose and drive. Having an identifiable group of interested people willing to put skin in the game is essential to creating a successful co-op.

Without an identifiable group of shareholders, it will be very hard to form or at least sustain a co-operative. This clearly defined group is important because a definitive component of co-operatives is the co-operation that happens between shareholders or members.

The financial records of the cooperative should be checked and audited regularly be competent auditors. They may either be co-op member or external auditors to uncover errors in recording and detect irregularities. Committed Enlightened and responsible membership who recognize a common need and direction. As such, the members should protected the interests of their respective cooperatives and capitalize on the realization that there is strength in members.

The government may assist by putting up the needed infrastructure and other related basic service but, much of the effort, the planning and the sacrifices must come from them. In this regard, members should be willing to meet their obligations and work hard so their cooperative can provide the desired services. Members must be committed to the success of the cooperative by generously contributing to build-up capital by increasing their stockholdings.

Successful cooperatives recognized the education necessity and importance of cooperative education. All members should be informed on the objectives, functions, structures and policies of the cooperative even before being accepted into the organization. This is the reason why Pre- membership Education is necessary.

Specialized Training for Officers and Management Staff. Officers and committee members have specific functions in the cooperative requiring certain knowledge and skills. Similarly, the Board of Directors should be able to develop co-op plans and programs and formulate sound policies appropriate for their implementation and the efficient operation of the co-op.

Promoting cooperative marketing to ensure adequate volume to co-op business. A member must promote and contribute to the building up of patronage and co-op capital.

Sufficient volume of business is necessary for the cooperative to render maximum service at the lowest possible cost and maintain a strong bargaining position in marketing farm products and procuring goods and services.

Every member should have enough investment to feel a definite responsibility and loyalty to his co-op. These funds can also spur co-op business diversification and enhance its on-lending performance: Developing and promulgating sound operating policies applicable to all.

An enlightened Board of Directors would do well in heeding the wishes of the members, specially when these would redound to the benefits of everyone. These policies are usually those that address the economic and provident needs of the membership. Operating policies must be conservative and not speculative This is the underlying principle behind all co-op business undertakes and the rationale for implementing co-op marketing and business alliance-building.

A broom can sweep dirt because the sticks are bound together. This same principle also applies to the members of any co-op. Ensuring your board is equipped to make good decisions and comply with co-op regulations is important for long-term success.

Beyond the governance training mentioned above, evaluating board effectiveness can bring out strategic opportunities and operational adjustments that will make your co-op more successful. Okay, this is a hyperbole, but we would like to see co-ops take their AGM more seriously. If you could use some guidance with your first AGM, we offer free supports in this area. Bonus one for you. Join the board of directors, keep informed, attend meetings and vote at AGMs.

Without you there is no business or organization. You matter. If the organization or business matters to you, stay engaged. To learn more about our services mentioned above, visit us. Not only their knowledge but their understanding of the project.

They have truly helped us along every step of the way. Their timely response and knowledge of the steps are extraordinary. They are forthcoming with information. This allows people with little or no cash to participate in the local economy. The Maleny Community Kindergarten was built by a group of community volunteers in Today it still operates in the same premises with a beautifully-landscaped garden out front.

The kindergarten is run by an elected board. Maleny has three environmental co-ops. Barung Landcare is one of several hundred community-based landcare groups throughout Australia; it runs a successful nursery, provides environmental education, and promotes the sustainable harvesting of native timber. There are four community settlement cooperatives in Maleny, includ- ing the Crystal Waters Permaculture Village. Crystal Waters houses residents on private one-acre lots. Two community lots that are owned by a cooperative of residents include buildings for community events, small businesses and a monthly market.

The first legal cooperative in Venezuela was a savings and loan associa- tion formed in By the end of there were registered coop- eratives with , members. Most of these are still active, tough and resilient because they were created by the members with no government support or funding.

For example, the Cooperatives of Social Services of Lara State Cecosesola , founded in , now includes producer and consumer food co-ops that serve 60, people each week, credit unions, health clinics and a network of cooperative funeral homes that is number one in the western region.

Co-op registration was made free of charge; they were exempted from income tax; micro-credit was made available; and laws were passed directing the government to give preference to cooperatives when awarding contracts.

The goal was to transform the profit-oriented capitalist economy into one oriented towards endogenous and sustainable social development by involving those who had been marginalized or excluded. The result was a phenomenal creation of , registered cooperatives by the end of , but many of these never became active or collapsed. The majority of cooperatives have few members who are unskilled.

In this way, the government pays the salaries, but keeps the ownership. PROUT on the other hand supports worker ownership as well as worker management. The PROUT Research Institute of Venezuela designed two surveys, in and a follow-up one in , to understand the problems and needs of 40 cooperatives in the rural district of Barlovento, a two-hour drive east from Caracas.