Posted on April - 22 - 2010
Co-op’s £5m blueprint
The Manchester-based Co-operative Group today unveiled plans to roll out a £5m service which aims to encourage more businesses to become co-operatives.
The Co-op says that the co-operative business model – where the risk and reward is shared among members – is becoming increasingly popular because it is a fair and sustainable way to run an enterprise.
The Co-operative Enterprise Hub was piloted in Manchester last year and is today launched across the north west.
The new, free service, backed by a £5m investment over three years, will operate using a network of staff in regional hubs.
They will offer advice and training to new and existing co-operatives, as well as loans without the need for security or personal guarantees.
The group said it aims to “expand the co-operative economy by creating strong, ethically-led businesses with a deep sense of social responsibility”.
Further hubs will be established across the country during 2010, with each one sharing the same footprint as regional development agencies.
Co-op Group chief executive Peter Marks said: “The co-operative business model has an exciting future in fostering business enterprise.
“More than 11 million members belong to some 5,000 co-operatives in the UK. And, with a combined turnover exceeding £29bn, it represents a significant contribution to society and the economy.
“With the recent financial crisis highlighting deep flaws in economic and business practices, people are opening their eyes to the co-operative model and seeing its merits as a modern, effective and relevant way of doing business.”
Among the businesses to have benefited from the scheme so far is the Busy Bee Toy Shop in Chorlton, Manchester, which closed last year when owner Mary O’Mahoney retired after 25 years.
Members of the local community formed a co-operative, raising the capital to buy the business and take on the lease in just five weeks after getting advice from the hub.
More than 100 people agreed to invest between £250 and £2,000, raising £32,000 to relaunch the store in July.
James Hillon, an insurance underwriter by trade and a member of the co-op, said: “Busy Bee was popular but sales were down and we have all sorts of ideas to make the shop a success.
“We’ve hired an experienced manager and will make more use of marketing and, of course, the internet, branching out into online sales.”
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