PART ONE: UNDERSTANDING CO-OPERATIVES
Why co-operatives succeed
Co-operatives succeed because of their members’ input and their strong understanding of co-operative principles and values, and when the product or service offered meets the needs of their market.
A successful co-operative has:
- Clear common objectives to achieve both its social purpose and operate as a sustainable commercial entity.
- A strong understanding of, and adherence to, co-operative principles and values.
- Involved members, who are kept informed and educated, and who are committed to success and encouraging of other members.
- Competent management, which communicates well with the Board and members.
- Sound business planning and the ability to plan for change.
- A positive attitude, and the belief of their members that they can make a difference.
- A strong sense of the needs of its members and market(s), and meets them.
- A sufficient size to receive fair treatment from suppliers of its inputs and/or buyers of its products.
- Strong community bonds, awareness and involvement in the community, capacity for selfreliance, and vitality.
- The ability to provide a service or product at a price that an investor-owned business can’t beat.
- A viable business opportunity and a realistic focus.
- Access to skilled advisors when necessary.
- Links with other co-operatives.
- Meetings that are clear and focused, open, and inviting to members to speak freely and raise questions.
- Clearly defined marketing agreements and returns to members.
- Members who are loyal to the co-operative and who understand both their own interest and the interests of the group.
- Constructive members with a commitment to integrity and honesty, and ability to delegate authority.
- Sufficient capital.
- The patience to grow slowly.