Co-op Training Module - Community Development - Lecture Slides, Slides of Human Development

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Co-op Training Module II

Unit 1

Co-operatives & the Community

Development Process

Co-operative Development

• A Co-operative

“is an autonomous association of persons united voluntarily to meet their economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise. ”

• Legally incorporated enterprise/business
• Owned & democratically controlled by people seeking to satisfy a common need for service
• Structure can address both social & economic goals to improve the quality of life for members and the community at large
• Co-op model can be applied to any community economic venture or social activity (i.e. fisheries, health care, eco-tourism, etc)

Community Economic Development

• Community Economic Development

“is a process which focuses on wealth creation, job creation, value-added activities, business and co-operative development, and enhanced viability for the community, the region and the province.”

• Enables communities to improve and solidify local economies
• Based on collective action and integration social, cultural & environmental aspects of community life
• Primarily driven by economic goals
• Seeks to build human resource capacity

Shared Principles & Values

Both co-operatives & community development

agencies share the following principles & values:

o A “bottom up” approach to development o Ensures community engagement in planning and implementation of initiatives o Encourages collective action o Community engagement and control o Elects local boards of directors to ensure democratic governance o Public consultation a norm o Building community capacity o Provides training & experiential learning activities for local volunteers o Creates networks of skilled and committed people

Co-op Training Module II

Unit 2

Co-operative Development

In Newfoundland & Labrador

Co-ops: Meeting Community Needs

• 100 years of serving needs of Newfoundlanders & Labradorians
• Systemic poverty & lack of services precipitated formation of first co-ops
• Hundreds of co-ops & credit unions formed in 1940s
• 1950’s and ’60’s brings new era of community development (i.e. MUN Extension, etc)
• Smaller co-ops fade into history while new ones form to meet changing economic & social conditions (i.e. Fogo)
• 1970’s and ’80’s see resurgence of co-op development (i.e. Petty Harbour Co-op, Eagle River Credit Union, etc)

Engagement of CD Agencies in Co-op

Development

• CD Agencies that have assisted with co-op formation

include:

• Fishermen’s Union Shrimp Company – Eagle River Credit Union
• Gambo-Indian Bay Development Association – Blueberry Industry Co-op
• Town of Tilting – Women’s Food Catering (Workers) Co-op
• Random North Development Association – Mink Pelting Co-op
• Baie Verte Consumer’s Co-op – Advocate Youth Services Co-op

Building Co-op Development Partnerships

• Co-op business model complements efforts of community development agencies
• CD agency support continues to be an important element of the co-op development process
• NLFC values its working relationships with;
  • Regional economic Development Boards
  • Regional Development Associations
  • Municipalities
  • Industry Associations
• Key CD agency roles include;
  • Enhancing public awareness of the co-op option
  • Identifying potential co-op development opportunities

Co-ops are Community Owned &

Controlled Businesses

• Co-ops strive to provide high quality, cost effective services for member owners
• Private sector’s primary focus is to maximize profits
• Co-operatives focus on the economic, social and environmental benefits to the local community
• Co-operatives are not entirely creatures of the business world, nor of the community, but rather a combination of the attributes and functioning of both

Co-ops Require Community Investment

• As a business, co-ops require capitalization from their members to ensure business success
• The mobilization of local capital is key to local ownership and control
• Member investments create long term stability is key to financing future development/expansion
• Members tend to re-invest co-op profits to enable leverage of funds from other agencies (i.e. banks, government, etc) for operation activities

A Legislated Operational Framework

• Co-ops are legal corporate entities under provincial & federal legislation
• The “Co-operatives Act” protects the unique aspects of the co-op business structure and operations & the rights of member/owners
• Co-op legislation provides more safeguards to protect the interests of members and those who conduct business with a co-op than private sector legislation

Priority is on Member Services

• A co-op’s first priority is to serve the needs of its members by providing high quality, cost effective services
• The members always have direct control over what services are provided, how they are delivered and maintained
• The needs of the members and the community are always balanced against the fiscal sustainability of the co-op enterprise

Opportunity Identification

• Key Questions
  • Would the recipients of the service, i.e. the potential co-op members, be better served by being the owners and having control of the operations of the enterprise?
  • Are there potential sources of technical assistance and advisory support to help with the co-op development process?
  • Will the services provided by the co-op provide a clear and direct benefit for potential members that would justify their investment in the enterprise?

Initiating the Developing Process

• Initial meetings of co-op proponents
• Formation of a Steering Committee
• Proposed business services /products are identified
• Development of a the co-op concept paper and initial business viability assessment
• Enlist the support and participation of the NLFC & other key development stakeholders