Alternatives: the Cooperative Business

On one hand, people are out of work and help to find a job is scarce. On the other, people have needs that only a sustainable income can meet. These two facts lead many to attempt to set up their own businesses; however, frequently, these businesses do not survive, or fail to bring in enough money to meet the family's needs.

One of the reasons many home based and single person enterprises do not get off the ground or thrive is that the owner-operator does not have all the skills needed to make a business successful. If people can accept the fact that the whole is greater than the sum of the parts, they have taken an important step in being able to work together to create a viable enterprise.

The cooperative business model is ideal for those who want to pool their skills, knowledge base, and abilities to from a solid foundation for a business. The cooperative model does not guarantee success; a sound business plan with a marketing study is important so that the company knows what business it is in, with whom the competition is, and perhaps, most importantly, if there is an existing demand for their product or service.

A cooperative is not a business but a business model. Cooperatives are democratic as all members of a co-op are equal decision-makers in the enterprise and employ the one-member, one vote, process of making decisions. Each worker owns a share in the cooperative and the enterprise is owned and controlled by the workers.

How to Get Started:

The first step is to talk with family and friends; however, be focused and careful. Someone may be your best buddy but may turn out to be a lousy business partner. The same goes for family; your brothers or sisters are not necessarily ideal business partners; so proceed with caution.

Seek out people who are in a similar situation as yourself, need an income but are not desperate. You will not get rich overnight and the pre-planning phase is important to the venture's long-term success; so if you need money now, your own business is rarely the answer, cooperative or not.

Once you have your cooperators, how many you need may vary from state to state and province to province. Here in New Brunswick, you need three (3) people to form a cooperative; it is time to detail the business, what you sell, make or offer, to whom and at what price. This information forms the core of your business plan
There may be organizations that can lend you a hand, provide insight and information, once you have reached this stage. Do your homework and find out what assistance is available locally and within your region. Remember we are all in this together and together we can build a strong regional economy.

Workers Cooperatives Can Create Jobs

[caption id="attachment_13967" align="alignleft" width="300"] Sitting in the cold[/caption]

Bob Ewing - Yesterday, as I left the dentist’s office I saw a man sitting on a bench in the mall about 30 feet away. I recognized him as someone I had seen in various spots around the City. There was a quiet air about him that suggested he was trying not to be noticed.

The weather here was brutal yesterday, minus 28 Celsius, and being outside for more than a few minutes, even properly dressed, was not a lot of fun, so, perhaps he was seeking temporary shelter.

My purpose is not to label this individual, but to use the experience to underscore how serious the rate of unemployment is here, and elsewhere.

People need jobs to buy stuff and housing is one of the most expensive items we purchase.

How can we as a society transition from a place where hunger and homelessness are growing, to a place were people can enter the marketplace and buy what they need? Worker’s cooperatives are one way that this transition can be carried out.

A cooperative is not a business unto itself but a business model; a business model that sells goods or services just as any other business does, the difference rests in the worker cooperatives’ structure.

Workers cooperatives are democratic, as all members of a co-op are equal decision makers in the enterprise, and employ the one-member, one vote, process of making decisions. Each worker owns a share in the cooperative and the enterprise is owned and controlled by the workers.

How can this make a difference in the unemployment rate? People have skill sets; some are capable of designing and making items, chairs, jewelry and so on. Others have great math skills and can do book keeping, still others can plan an ad campaign or handle public relations. Separately they are not able to run a successful business; but working together or cooperatively they have what it takes.

Some people do not attempt to set up their own business because they know they lack all the skills needed, and cannot afford to hire; others venture forth, some succeed, others do not.
When the circle is expanded and others are involved, then the picture changes; the potential resource base widens and the result is a stronger corporate foundation.

There are agencies that can assist in the development of your cooperative enterprise. Here in New Brunswick, you only need three people to get started and there is a provincial council that is very knowledgeable and helpful.

A word of caution, be careful about who you ask to men a member; just because someone is a family member or a long time friend does not mean they have the skills the enterprise demands or that you can work together, especially when times are going bad, which can happen in any business.

The United Nations has declared 2012 to be The Year of the Cooperative, take a hint and take a look.