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Transcript of Co-operating for Business Success in the Creative Industries Diarmuid McDonnell Co-operative...
Co-operating for Business Success in the Creative Industries
Diarmuid McDonnell Co-operative Education Trust Scotland
28/02/[email protected]
Outline
1. What is a co-operative?2. Are they relevant?3. Are they ethical?4. Are they useful? Why would I choose one?5. How would I set one up?6. What other ways can I get involved?7. Further resources8. Discussion Qs
Introduction
Despite the wide-ranging successes of co-operatives, in financial terms as well as in the development of sustainable communities, the study of these democratic forms of enterprise remains surprisingly absent from the curricula of most university business schools around the world.
The Invisible Giant
Co-ops defined
Co-operatives are businesses
• Member-owned• Democratically controlled• Distribute surplus to members
Purpose is not profit maximisation; they serve the needs of members. However, the do generate a surplus.
Members
Why become a member?
It’s about achieving self-interest in a collective manner
A group of individuals have a common need that is not being met
Types of co-op
Typical types:
1. Consumer
2. Producer
3. Worker
Sectors:
Finance
Insurance
Agriculture Retail
Housing Education
Creative
....and pretty much every other
you can think of!
Co-operatives globally (1)
Source: ‘Statistical Information on the Co-operative Movement’ ICA.
http://www.ica.coop/coop/statistics.html, accessed 29 September 2011.
Co-operatives globally (2)
The UK co-operative sector (1)
Source: Co-operatives UK. The UK co-operative economy 2011: Britain’s return
to co-operation (Manchester: Co-operatives UK), 2011.
No. of co-operative businesses in the UK:
5,450
No. of members: 12.8m
Turnover of co-operatives: £32.2bn
No. of people employed by co-operatives:
236,000
The UK co-operative sector (2)
Source: Co-operatives UK. The UK co-operative economy 2011: Britain’s return to co-
operation (Manchester: Co-operatives UK), 2011. p. 23.
4352
473
386239
Number of co-operatives by country
EnglandScotlandWalesNorthern Ireland
The UK co-operative sector (3)
Source: Co-operatives UK. The UK co-operative economy 2011: Britain’s return to co-
operation (Manchester: Co-operatives UK), 2011. pp. 20-2.
2008 2009 2010
-4
-2
0
2
4
6
8
10
12
14
16
% Growth of the UK co-operative movement
Turnover Membership Co-operatives
Year
Growth %
Odd one oot!
Value-driven
Co-op ValuesSolidarityEquityEqualityDemocracySelf-helpSelf-responsibility
Ethical ValuesOpennessHonestySocial responsibilityCaring for others
BUT... Google, Tesco and Barclays have values as well...
Values in action
Co-op Principles1. Voluntary and open membership2. Democratic member control3. Member economic participation4. Autonomy and independence5. Education, training and information6. Co-operation amongst co-operatives 7. Concern for community
All* co-ops subscribe to these principles – firm ethical foundation
Uses of co-op model
Share resources Share risk Share reward
KnowledgeBuildingsCapitalEquipment
InvestmentCostsTraining
New clientsWork-life balanceShare of a larger pie
Example: sharing a studio, IT equipment/software
Example: joint purchasing of raw materials, insurance policies
Example: joint marketing/bidding for contracts
Case study 1 - Bridges
Actor-owned and controlled agency providing casting and PR services.
Usually between 10-20 members at any one time.
Members pay the usual fee (12.5%) and volunteer some of their time -
3 days per month - to admin tasks.
http://s.coop/1f3c3
Why choose co-ops?
Case study 2 – Openspace
Producer co-operative of self-employed professionals and small
businesses.
Joint renting and management of office space – ‘co-working’
The space is used by a broad mix of people including: a digital marketing
consultant, a web designer, two freelance journalists, an author, a
writer/performer, a cartoonist, an illustrator.... http://s.coop/me3t
Setting up a co-op
1. Shared purpose and objectives2. Ownership structure3. Democratic governance4. Distribution of surplus5. Membership6. Capital requirements7. Legal structure
Case study 3 – graphics.coop
A worker co-operative of web and graphic design experts.
Operating for over 20 years, graphics.coop specifically targets the
third sector and ‘ethical’ businesses.
Set up by individuals fresh out of university.
http://s.coop/1f84u
ExampleBusiness idea: marketing services for local SMEs
Design elements In practice
Shared purpose and objectives To allow members to access larger contracts
Ownership structure Members will be the individual businesses and self-employed marketing professionals
Democratic governance Each member has one vote to elect the management committee
Distribution of surplus 65% retained in business, 25% to members, 10% to charitable donations
Membership The majority of members must be businesses/self-employed and the majority of businesses/self-employed must be workers
Capital requirements Not a capital-intensive business so no need for shares
Legal structure Company Limited by Guarantee
Case study 4 - Yellow Brick House Media
A producer co-operative (known as a consortium) of digital media professionals
and businesses.
New media content and marketing, television production, web development
and graphic design.
Each professional and business retain their own identity but jointly bid for
contracts.
http://s.coop/1f3dh
Get involved
In higher/further education:
• Join/set up a ‘vegbag’ scheme – http://s.coop/1f35f
• Need books or other services? – http://s.coop/1f35j
• Freshsight model – http://s.coop/1f35t
In the ‘real world’:
• Bank/save with a co-op – http://s.coop/8157; http://s.coop/1f36a
• Shop with a co-op – http://s.coop/1f36b; http://s.coop/1f36h
• Create your own employment – see any of the cases in this presentation!
Case study 5 - Freshsight
Student-run enterprise providing consultancy services to the third sector in
Edinburgh.
In the process of becoming a worker co-operative with help from CETS and Co-
operative Development Scotland.
The basic idea is replicable, if not in the same sector (uni students are a
plentiful and in demand resource...)
http://s.coop/1f35t
Conclusion
1. The Invisible Giant
2. Share resources, share risk, share rewards
3. Ethical
4. Democracy in action
5. Easy to get involved in
Key message
Further resources
Co-operative Entrepreneurship – an ebook and VLE aimed at students/graduates
containing information on how to set up a co-operative enterprise
http://cets.coop/moodle/course/view.php?id=4
Start a co-operative – an online resource by the UK’s trade body for co-operatives
http://www.uk.coop/start-co-op
Join the Co-op Future – a 4 minute film that offers a snapshot of the co-operative
sector in Scotland
http://vimeo.com/43665118
Further resources (2)
Creative Co-operatives – a dedicated guide to the creative co-operative sector
http://s.coop/1f83y
Co-operative Development Scotland – free and expert advice on a variety of co-
operative models
http://s.coop/vft6
Discussion Qs
1. If everything I’ve said is true and so great, why are there not
more co-ops?
2. Are there any areas of your life (as a student or in general)
where setting up a co-op could make things much better?
3. Why is democracy not widespread in corporations, but is
nonetheless something we strive for in society (and for
which people in some countries sacrifice their life)?