Here we outline some of the benefits of a co‑ops businesses – to your business, workers, members, the wider community and the UK economy.
Ownership matters. Giving people ownership of the businesses that they are closest to – whether they are workers, customers or suppliers – has multiple effects.
Benefits to the business
Shared ownership of a business:
- Gives people a stake, creating greater engagement, interest and concern for the long term interests of the business. This applies as much to customer or employee owners of large retail businesses as it does to local people, who together own valued local enterprises such as pubs or football clubs.
- Boosts productivity by making employees and suppliers more likely to work harder to support the business. Studies consistently show that the commitment ownership brings boosts productivity because people are invested, emotionally and financially, in the business.
- Sharing ownership harnesses innovation, by giving those who understand the business best a reason to contribute to its development. There has been a move towards participation across the business world, as companies try to harness the ideas of those closest to the frontline - the employees and customers. When these people are also the owners there is an incentive, and a reward, for contributions.
But while business ownership matters, people have a sense of powerlessness about the economy. In Britain, 58% of people say big businesses are out of control and 57% say they have no influence over the economy.
Co-operatives offer a solution. They give people control of the businesses they are closest to - whether they shop at them, work at them, or supply them. And they give people control over things that matter to them, in process boosting productivity, harnessing innovation and giving them a stake. That is the co-operative advantage.
Benefits to community
Co-operatives are often rooted in their local community, providing a service that the community otherwise would not have, providing employment to local people, maintaining wage levels and keeping money in the local economy.
Benefits to the UK economy
Co-operatives are worth more than £38.2 billion to the UK economy. Co-operatives UK publishes The Co-op Economy report annually. In 2020 we revealed:
- 76% of co-op start-ups are still flourishing after the difficult first five years. Just 42% of new companies make it through to the end of year five
- Annual turnover of the UK’s co-operative sector is up to £38.2 billion - an increase of £340m on the previous year
- The UK’s 7,063 independent co-ops employ 241,714 people and have over 14 million members who own and have a say in how the nation's co-ops operate