Considering cooperation: a guide for new cooperative development
This publication reviews the key elements needed for successful formation and development of new cooperative businesses. Six phases of cooperative formation are described:
- identifying the opportunity
- building consensus on the potential for a cooperative
- developing trust among potential members
- securing member commitment
- involving other stakeholders
- starting up the cooperative enterprise
Potential obstacles are presented for each of these phases and common causes for new cooperative failures are reviewed.
Key ingredients for successful cooperative start-up are discussed. These include:
- a joint recognition of a common economic problem by the potential members and initial leaders;
- a cooperative solution which will be more effective at providing the desired service than the prospective members could achieve individually.