What’s a Co-Operative Model and Why Should Business Owners Consider it?
Buyers, have you ever considered purchasing a business and converting it from a traditional structure into a co-operative? Business owners, have you ever considered selling a business to a co-operative?
A co-operative is an employee-owned or community-owned enterprise which follows the co-operative principles. These principles include democratic governance (one member-one vote), concern for community, and co-operation among co-operatives. The overarching goal of co-operatives is to increase solidarity and mutual support in economic action. More information about co-operatives is available from the Canadian Worker Co-op Federation at this link and from Co-operatives and Mutuals Canada, here.
The co-operative model tends to be much more sustainable than other business models. With a high success rate, twice as many co-operatives remain in operation after 10 years, in comparison to other forms of business ownership! A successful co-operative provides not only employment, but strong economic return, investment opportunities, collaborative growth, and service to its community. Due to their structure and governance, co-operatives also have strong ties to their communities which garners more support, as all member-owners strive to see the business flourish. Continue reading to find out more about co-operatives/ other Social Purpose Organizations, and how the Canadian Worker Co-op Federation can help you achieve your vision of a financially viable and socially impactful enterprise.
With the support of the Government of Canada’s Investment Readiness Program, the Canadian Worker Co-op Federation began the ‘Justice, Equity, Diversity, Decolonization, and Inclusion (JEDDI) Business Conversion Project’ in September 2022. More information is available here.
The project is an outreach, awareness, and support initiative that focuses on conversions from traditional business structures to Social Purpose Organizations (i.e., cooperatives and other collective ownership models, social enterprises, etc.) amongst Equity-Denied Groups (women, BIPOC, youth, people with disabilities, & LGBTQ2S+ groups). Our main target audience consists of members of Equity-Denied Groups who are current business owners, thinking of selling or purchasing a business, and/or simply interested in business conversions to Social Purpose Organizations (SPOs). Social Purpose Organizations have different value systems that inform their governance and thus operations. This enables selling owners and purchasing owners (employees, communities, and other stakeholders) to create more socially impactful enterprises.
Recognizing that there is a lack of engagement from Equity-Denied Groups within the co-operative/SPO sector, this project seeks to connect with these communities and the business owners therein, to help facilitate conversions from traditional businesses to SPOs, to improve access to and knowledge of conversion resources, and to develop a shared toolkit and ecosystem for the sustainability of co-operatives and other SPO’s. Since many businesses do not start out as SPOs, a business conversion process is necessary for those who wish to transition. We aim to communicate information on different pathways to Business Conversions geared towards business owners, design promotional and educational materials on the subject matter (i.e., workshops, webinars, etc.), and provide meaningful resources and support that will better equip members of Equity-Denied Groups to transition their businesses to Social Purpose Organizations.
The project offers both educational and financial support and will also connect those pursuing conversions to service providers and experts (i.e. co-op development consultants, accountants, lawyers, etc.) who are essential parts of a successful conversion. We will also provide early stage consultations to those pursuing the process. The overarching goals are to facilitate business conversions to SPOs for individuals and/or groups and to raise awareness of the collective power within this model.
If you or anyone you know may be interested in converting their business to a co-operative or another Social Purpose Organization (SPO), please reach out to us at jedi-sa@canadianworker.coop.
**Please note that even if you are not a member of an Equity-Denied Group but may be interested in converting your business to any form of a SPO, you may contact us at the above email and we would be happy to share more information.
Opinions expressed here by contributors are their own.
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