Not sure if this should be here or in Business so please redirect if it is in the wrong place.

It is likely many of you if not all of you have heard of the term "cooperative". But I bet most of you have never really researched into what a cooperative does and yet you have preconceived ideas on what happens in a cooperative. This article is the first article aimed at empowering you with the knowledge to not only understand what a cooperative is, but to participate and benefit from one.

A cooperative is a businesses owned and run by its members for its members. Members often have something in common like heritage, interests, work, geographic location and more.

Member all have equal voting rights and when profits are made this is shared amongst members or reinvested according to the decision of members. Often cooperatives may work together to improve the lives of all members in a given community. Jamaican and Nigerian cooperatives have often been known to put aside each month a given amount to a central fund and each month the group gives this to one of the members (or something to this effect) but in actual fact operating models and income streams and income release can be defined in any way and decided by the group (sometimes this changes as business models are often flexible).

Co-operatives are businesses, not charities, so the aim is to profit financially, socially or otherwise (i.e. obtaining scarce products/services). By working together, members do better in their individual monetary investments. savings and businesses than they would have separately.

Cooperatives can invest locally and internationally promoting growth in areas underlooked by various organisations.

So here is my proposal. I am thinking of starting a cooperative:

- It would have a legal structure.

- It would have a steering group that ensures the interests of all members are followed (lets say the steering group/committee sits for 3 years before re-election, for very first term would sit for 5 years to raise funds and profile).

- It would invest in areas/business members have knowledge of or experience or a need for i.e.

Any idea that comes up through cooperative brainstorming
Entertainment- Books/Movies/TV Shows
Business Start Up Seminars/Training/ Ancillary Services (i.e. Websites, Accounting, Marketing, Legal etc)
Recruitment Firms and Career/Employment Advice
Childcare/Daycare Services and Babycare Products
Food and Drink (Catering, Restaurants, Consumer products, Trade/Distribution)
Education (Schools/Tuition Classes)
Family/Relationships
Fashion, Hair and Beauty
Homes and Gardens (Real estate development and related services i.e. plumbing, electricians etc)
Living Overseas (Relocation to Nigeria company specialising in cargo, accommodation, schools, healthcare, settling in etc)
Politics (in UK and Nigeria)
Social Events (Celebrations, Festivals, Parties, Wedding Planners)
Travel/Holidays (Vehicle Shipment to Nigeria, Investing in Tourism in Nigeria, Travel Agency etc)

- It would create profit financially, it would offer employment opportunities, it would offer experience and exposure and have a community building outlook.

- It would be for Nigerian families in the UK (at first or permanently)

- There would be monthly payments of £50, a member can withdraw money by leaving subject to notice period in the constitution. So if for example there were 20 members, £12k would be generated in the first year from contributions. Members can invest more than a minimum with a view to sharing more of the profit based on their financial investment, members can also share more in profit through trading their time i.e. acting as accountant or building brick walls for a development totaling 10 hours. THE ARE ALSO OTHER SOURCES OF FUNDING LIKE GRANTS OR LOANS THAT COULD ASSIST IN RAISING THIS AMOUNT.

If you are interested in setting up this cooperative with me and have suggestions or strong opinions, please contact me at ellaoku@gmail.com

Thanks

Regards

Mrs Ella Inedia

Siena: ^^^ Brilliant concept, Ella. I remember these back when I was a kid - both my parents were members of their respective Cooperative unions.

It'll be interesting to see how such a venture pans out in the UK. The important thing is, the priviledge shouldn't be abused by its members, that way it's mutually beneficial to everyone.

Exactly Siena. I remember hearing stories of susu in Nigerian and many thrift lending societies. I think the failing here is that when someone takes a loan from a coop, lets say to fund their children's education there is only limited motivation for the other members to assist them should they run into difficulty paying back. There is generally little screening or vetting to make sure it will be a worthwhile use of the loan and high interests are apportioned so many would argue it is even more profitable for members if the debtor takes longer to repay as they cash in.

If however, money from members is used to invest, the group now has a collective interest to ensure the investment is profitable and succeeds. So if they invest in a restaurant for example. They will not choose whoever shouts the loudest is oldest or is most popular to front it. They will choose the most skilled. They will also invest heavily in business planning and promotion financially and physically, paying for advert space, telling friends, other groups they belong to, work colleagues to go eat there and celebrate there. They will also only patronise this restaurant for family dinners/evenings as they know a £20 meal in Pizza Hut is lost and they don't know how the food is cooked or the ethos of how the place is kept. But £20 in their cooperative owned restaurant is an investment in their future profits they will receive back and whats more they had a hand in deciding how the place would be run including service standards etc.

The restaurant example is just for illustration but can be used for any industry. If the business invested in is experiencing problems i.e. due to economic climate lets say, the group members are likely to reinvest to turn things round or collectively decide to enter another market that may have arisen i.e. home take away rather than blame each other or turn a blind eye. All decisions are collective and are for and by all members.