Cooperatives, Social Businesses, Strong Local Economies

For centuries local economies have been strengthened by cooperative alliances and in March Dame Pauline Green, President of the International Cooperative Alliance visited to launch Social Business Australia (SBA) at Parliament House in Canberra.

We all like to feel that what we do makes a difference and social businesses, such as Social Traders in Victoria, and co-ops, that give local people some ownership and control over an environment they know very well, unleash enormous creativity. Dame Pauline spoke of the huge diversity of business models in successful economies around the world, and of recent figures on cooperatives.

• They are owned by nearly 1 billion people globally
• They employ over 100 million people – 20% more than the world’s multi-nationals

AND

• the largest 300 alone have a combined turnover of nearly US$1.1 trillion, equivalent to the GDP of the 10th largest economy in the world

SO, governments should be ensuring a level playing field for investor-led business AND social businesses.

Many And Varied Co-ops Achieving Well

The Obama administration is investing heavily to develop a cooperative economy in rural communities to keep jobs and the young ‘at home’ and these rural communities alive and in the UK there is a large array of cooperative development:

• Foundation Trust Hospitals built over the last 5 years on the co-op model, work with their community, patient and staff members to develop a hospital service that best meets the needs of local people – a new trust relationship has formed
• Cooperative Trust Schools – a recent development – has a governance model based on the direct involvement of parents, carers, learners and local community organisations. It also has as strategic partners, the local university, local health sector, local sports body AND the demand from schools seems insatiable!
• Football co-ops are giving soccer fans some sort of influence over the direction of local clubs, trying to combat funding excesses. They do this by bringing together the investment potential of the fan base, collectively allowing them to regain a foothold on the Boards of local clubs
• Co-ops have brought faster internet capacity and services to isolated communities who would always be at the end of the queue for public investment
• Childcare co-ops have brought quality care, owned and controlled by parents and staff and local community interest groups
• Co-ops buy social and healthcare for the sick and vulnerable who receive direct care payments from government and who alone would be at the mercy of poor and expensive service
• Out of hours doctors’ co-ops meet the needs of the sick at hours when medical practitioners either choose not to work or who are resting

IN AUSTRALIA

• The Macleay River District Fishermen’s Co-op and Barossa Community Store are retail businesses serving their communities for decades
• The Hepburn Wind farm Cooperative, the first community-owned wind farm has raised more then 90% ($7.3 million) of project costs from 1070 members

The UK Think Tank Mutuo conducts research into the many types of mutual organisations, publishing their findings to expand our understanding of the sector and outlining potential opportunities in both public and private sectors.

Mutuo’s groundbreaking research and publications have put it at the forefront of the drive to empower communities in the delivery of public services, including housing, health, childcare and education.

Are our governments ensuring level playing fields for social businesses and investor-led businesses I wonder?