1. Welcome
Co-operative Economic Development

2. Agenda
Dashboard
Speakers
Q&A
Follow-Up

3. Speaker
Fred Khonje
Co-operative Development Officer
Saskatchewan Co-operative
Association

4. Co-operative Economic Development:
SEDA Live Webinar Series
Frederick Khonje
Co-op Development Officer
October 16, 2012 www.sask.coop
(306) 244-3702 Saskatoon, SK

5. Who is the Saskatchewan
Co-operative Association?
Background
Co-op Economic Development 101
Co-op Economic
Development Opportunities

6. SCA Members
Canadian Worker Co-operative Federation
Federated Co-operative Ltd
6

7. Co-operative Development
• Advisory Services
– Incorporation processes
– Business planning
– Technical Assistance
– Accessing funds
7

8. Youth Education & Involvement
• Saskatchewan Co-operative Youth Program
– Summer Camps
– Staff Training
• Youth Conferences
• Schools Leadership Program
8

9. 2012
International Year of Co-operatives
Co-operative enterprises build a better world

10. Co-operatives are a reminder to the international
community that it is possible to pursue both
economic viability and social responsibility.
- Ban Ki-moon, UN Secretary General
Co-operative enterprises build a better world

12. CO-OPERATIVE ECONOMIC
DEVELOPMENT
12

13. Community Economic Development
• Community Involvement
• Community Ownership
• Utilizing Community Resources
• Local Wealth Creation
13

14. Why Co-operatives
• Independent & Community Owned
• Accountable
• Address Specific Needs
• Sustainable Businesses
– Cultural
– Economic
– Social
– Environmental

15. 15
Co-op Facts
1 Billion Co-op Members World Wide
 100 million jobs
9,000 Co-ops & Credit Unions in Canada
 5.9 million members
 4 of every 10 Canadians are members of a co-operative
Higher Survival Rate (2X)

16. Saskatchewan Co-operatives
16

17. Farmer’s Market Co-operatives
35
17

18. Housing Co-operatives
42
18

19. Community Service Co-operatives
60
19

20. Child Care Co-operatives
109
20

21. Small Business Loan Association
Co-operatives
129
21

22. Recreation Co-operatives
166
22

23. Retail/Consumer Co-operatives
177
23

24. Agricultural Co-operatives
326
24

25. Saskatchewan Co-operatives
1200
25

26. CO-OPS 101
26

27. What is a Co-operative?
An organization that is:
Formed to meet a
common need
Democratically owned &
controlled by its members
Designed to provide
benefits to its members
Regulated by the
Saskatchewan Co-
operative Act (1996)
27

28. How does a co-operative work?
Co-op Members
Elects Reports to
Board of Directors
Hires Reports to
Top Senior Management
Hires Reports to
Staff
28

29. 29
How are co-operatives different?
 Sole Proprietorship/Partnership: A business owned by one or more people, usually
to provide employment and a return on investment to the owners.
 Investor-Owned Corporation: A business whose stock is traded publicly by any
number of investors.
 Cooperative: A member-owned and member-controlled business that operates for
the mutual benefit of all members. The cooperative form of business is one that brings
the owners, controllers, and users of a business together into one group.

30. Seven Co-operative Principles
30

31. 1. Voluntary & Open Membership
31

32. 2. Democratic Member Control
32

33. 3. Member Economic Participation
33

34. 4. Autonomy & Independence
34

35. 5. Education, Training & Information
35

36. 6. Co-operation Among Co-operatives
36

37. 7. Concern for Community
37

38. Types of Co-operatives
38

39. Types of Co-operatives
39
39

40. 40
Consumer Co-operatives
Owned and controlled by its customers
Buys products or supplies in bulk and sells
them to its members.
Any surplus or 'savings' belongs to co-op
members and can be repaid in cash or
allocated to members' equity accounts.
Examples:
Steep Hill Food Co-op
Saskatoon Co-operative Association

41. 41
Financial Co-operatives
Owned and controlled by its members (e.g.
customers).
Provide financial services to members similar to
banks and trust companies
Variety of benefits (e.g. equity/dividend
payments, reduced loans, reduced account
charges etc.)
Examples
Conexus Credit Union
Affinity Credit Union

42. 42
Worker Co-operatives
The workers/employees are the member-owners
Employees operate their business together and
make decisions about all the important issues
including wages, production methods and
finances
Main benefit to members is employment
Examples:
Prairie Dog Magazine
Planet S Magazine

43. 43
Producer Marketing Co-ops
Membership of independent producers
work together to buy and sell their
products
Co-op members benefit from sharing
processing and packaging equipment
and pool their marketing resources to sell
their products or services
Examples:
Farmer Direct Co-operative Limited
Ocean Spray Cranberries Inc.
Sunkist

44. 44
Community Service Co-operatives
• Membership is usually made up of individuals or
associated groups from a community.
• Provides services to their members that are primarily
for the benefit of the public or general welfare of
the community
• Examples
– ACCESS Communications Co-operative
– Saskatoon Community Clinic Ltd.

45. 45
Multi-stakeholder
• Blend of different co-operative forms
• Made up of different types of members, with
differing interests and benefits
• Example
• Producers
• Consumers

46. Co-operative Development
46

47. Co-op Development Process
2.
1. 3. 4. 5. Implementation 6.
Building
Pre- Consensus Governance Planning & Aftercare
Development & &
& Launch
Establishing Incorporation Organizing
the Co-op

48. Co-op Development Process
1. Pre-Development
 find other people in your community that are
prepared to build the co-op with you
2. Building Consensus & Establishing the Co-
op
3. Governance & Incorporation
4. Planning & Organizing
5. Implementation & Launch
6. Aftercare
48

49. Co-op Development Process
1. Pre-Development
2. Building Consensus & Establishing the Co-
op
 Identify who will join the co-op, services provided to
members, and member responsibilities
 Solidify a development committee
3. Governance & Incorporation
4. Planning & Organizing
5. Implementation & Launch
6. Aftercare
49

50. Co-op Development Process
1. Pre-Development
2. Building Consensus & Establishing the Co-op
3. Governance & Incorporation
 Decide on how the board and members will work
together, what the roles are and how decision making
will happen
 Incorporation process
4. Planning & Organizing
5. Implementation & Launch
6. Aftercare
50

51. Co-op Development Process
1. Pre-Development
2. Building Consensus & Establishing the Co-
op
3. Governance & Incorporation
4. Planning & Organizing
 Developing the co-op’s business plan
5. Implementation & Launch
6. Aftercare
51

52. Co-op Development Process
1. Pre-Development
2. Building Consensus & Establishing the Co-
op
3. Governance & Incorporation
4. Planning & Organizing
5. Implementation & Launch
 Launching the business
 Developing milestones & timelines
 Hiring staff and consultants (Manager, lawyers,
developers etc.)
 Legal procedures
6. Aftercare
52

53. Co-op Development Process
1. Pre-Development
2. Building Consensus & Establishing the Co-op
3. Governance & Incorporation
4. Planning & Organizing
5. Implementation & Launch
6. Aftercare
 Recruiting & Educating Members
 Further Assistance from a Developer
53

54. Co-operative Economic
Development Opportunities
54

55. Community Demand
• Vehicle for Community Economic Development
• Business Successorship
• Community Entrepreneurship
• Community Ownership & Control
55

56. Aboriginal Co-op Development
• Co-operative Housing
• Worker Co-operatives
• Key Services
– Groceries
– Laundry Services
56

57. Seniors’ Services
• Seniors’ Housing
• Seniors’ Health Care
• Funeral Services
57

58. Agriculture
• Producer Co-operatives
• Marketing Co-operatives
• New Generation Co-operatives
58

59. Young Professionals
• Sustainability
• Collective Entrepreneurship (Worker Co-ops)
• Building Community
• Niche Markets/Hobbies
• Environment
• Deliberate Communities
59

60. Q&A
Please send your questions via the Chat or
Question widget on your dashboard.

61. Thank You!
For more information on co-ops:
Frederick Khonje
Co-operative Development Officer
(306) 244-3702
Fred.khonje@sask.coop
#120 128 4th Avenue South
Saskatoon, SK
www.sask.coop
Twitter: @CoopNewsSK

62. Thank you for joining us!
Verona Thibault
President, SEDA
@saskecdevassoc
@growourregion
verona.thibault@seda.sk.ca
306-384-5817
Fred Khonje
Co-operative Development Officer
Saskatchewan Co-operative Association
Fred.Khonje@sask.coop
@CoopNewsSK
306-244-3702