Co-oppundit 2012

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Motive

Enterprise model

THE MOTIVE
– the reason for the existence of the enterprise and what it should achieve

OVERALL PURPOSE

The purpose of a member-controlled enterprise is to achieve those outcomes that are agreed by the membership. A common purpose that is agreed and sustained by members on the basis of self-help and mutual help and which is clearly understood and communicated to all concerned.

Co-operatives & mutuals and their purposes
Type of co-ops & mutuals and their typical overall purposes, which are achieved by means of market intervention:

Consumer Co-op – Secure the supply of safe, quality goods at fair prices.
Credit Union – Access credit and provide a safe home for savings, both at fair rates of interest.
Building Society – Access finance for housing and provide a safe home for savings, both at fair rates of interest.
Mutual Insurance Society – Secure reliable, honest cover for risks at fair and reasonable cost.
Agricultural Marketing Co-op – Secure markets for produce on fair terms and at fair prices.
Agricultural Supplies Co-op – Secure the supply of safe, quality farm inputs at fair prices.
Workers’ Co-op – Provide employment and secure more control over the workplace, along with improved conditions and fair returns for their labour
Utilities Supply Co-op – Secure access to the supply of utilities under fair conditions and at fair prices
Artists’/Artisans’ Co-op – Obtain a better returns for the product of their skills, along with more creative opportunities and access to markets
Village shop Co-op – Secure and maintain access to local retail services at fair prices.
Housing Co-op – Access good housing at a fair price or, for tenants gain more control over their living conditions
Sports and Leisure Club – Provide and maintain access to quality sports/leisure facilities at fair prices

FUNCTION
The main function of a member-controlled enterprise is to intercede within the market in the best interest of its members

OUTCOMES

The most essential outcome routinely sought by members is a better deal* than is currently available within the market. Additionally, members want their enterprise to be both trustworthy and sustainable. The specifics of the desired outcomes (objectives) need to be separated into those that are immediate (operational) and those that are longer-term (strategic). The initial purpose of a member-controlled enterprise will be to meet the specific needs of the founding members but ought to evolve so as to meet the needs of current members as circumstances change.

* A ‘better deal’ can mean different things to different people but it generally also means a ‘fairer deal’. It can mean getting a fairer price for goods or services bought or sold - including for the knowledge, skills and labour of members. However, it can also mean securing access to services that would not otherwise be available, such as a village shop, rural transport, access to credit.

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