Looking at the Cooperative Business Model

”Why don’t more businesses set up as a coop?” This is the question I found myself asking throughout last week’s Innovation Guelph Lunch & Learn with Peter Cameron, Ontario Cooperative Associations’s Coop Development Manager.

One reason: awareness. In fact, Ontario has the lowest awareness of the cooperative model in Canada. So, let’s explain.

According to Peter’s presentation, “A Co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.”

The net effect could be thought of as similar to a social enterprise where success is measured through impact on people, profit and planet, except the structure is quite different. Cooperatives are registered under specific legislation and must have democratic ownership. This means you need at least 5 people to form a coop (3 for a worker coop like Urbane Cyclist).

Coops also must adhere to the 7 Principles of Cooperatives, which includes community investment. I am member of Gay Lea Foods, a farmer-owned coop started right here in Grey Bruce, and just this week they made me super proud by donating calf feed to farmers affected by the BC floods. This is just one example of regular investments they make into education, agriculture development and food security. These decisions are also managed by members.

So, you could say all cooperatives are a form of social enterprise but not all social enterprises are cooperatives. The model has been around for a long time and is especially common in housing, child care and agricultural organizations. What I found super interesting in Peter’s presentation was how it’s being used to disrupt, through platform coops, and assist business succession, with Coop Conversions.

Coop platforms are modelled after platform services, like Uber and AirBnB, but they decentralize revenue back into the communities where hosts operate. So, for example, when FairBnb directs half their booking fee towards project in the community you’re staying. This is especially important in areas where high tourism has resulted in social and environmental degradation.

Coop conversions are a brilliant way to succeed a business to employees when the founder is ready to retire and wants to see the business continue. Peter shared an example of an Guelph-based architect who transitioned his firm to a coop recently. This is something the OCA can assist your business with or you can check out Coop Convert to learn more.


Finally, the cooperative model isn’t just a great way to do business for good, it’s also a more sustainable model. Cooperative businesses have significantly higher survival rates than other businesses.

To learn more about some local coops in Grey Bruce, take a peek at Eat Local Grey Bruce or the recently formed Glassworks.

ArticleCathryn Lovecooperatives, business models