Cooperatives as an alternative business

model?

Hannes.hollebecq@coopburo.be

Lieve.jacobs@coopburo.be

info@coopburo.be 016/27.96.88

www.coopburo.be

• ICA filmpje

A cooperative is …

“…an autonomous association of persons united voluntarily to meet

their common economic, social and cultural needs and aspirations through a

jointly-owned and democratically-controlled enterprise. (ICA, 1995).”

An alternative business-model?

1. Triple relationship: 1. A transaction relationship:

Meet your needs user benefits

2. A financial relationship: Owned by you user owner

3. A participation relationship: Controlled by you user-control

2. Value maximization (versus maximization of profit)

3. Membership

3.000 farmers

Are owning 6 factories for producing cheese,

icecream, butter, …

• Triple relationship:

– User benefits: a fair price for their milk

– User owner: every farmer is co-owner for several 10.000€

– User control: one member one vote and dairy farmers are in charge

• Value maximization goes in two directions:

– Profits are shared by members

– Losses are shared by members

• Membership: exclusively for dairy farmers

4 self-employed people

Are owning their company

• Triple relationship:

– User benefits

– User owner

– User control

• Value maximization

• Membership: at least two years experience in the company

50.000 citizens

Are owning several

renewable energy

installations

• Triple relationship:

– User benefits

– User owner

– User control

• Value maximization

• Membership: every citizen

• 7 cooperative principles (ICA)

• Does this business model contributes to society?

• Give it a try!

“Co-operatives are a reminder to the international community that it is possible to pursue both economic viability and social responsibility.”

Ban Ki-moon, UN Secretary General

Does this business model contribute to society?

• At the basis of most cooperatives: a mutual interest internal mutuality

• Do all cooperatives overcome the strict mutual benefit objective?

strict mutual

benefit enlarged mutuality

social objective in a mutualistic structure

Develop your own coop! 1. Who are you?

2. Why did you set up this coop? – Why do you need each other?

– What’s your concern, problem, need?

3. What’s your activity?

4. Triple relationship – value maximization – membership

5. In what way and to which extent does your coop overcome the strict mutual benefit objective?

1. PRESENTATION OF THE NEW COOPERATIVES

1. PRESENTATION OF THE NEW COOPERATIVES 2. DISCUSSION