Cooperative societies amongst entrepreneurs

The first principle for a cooperative is Shared Responsibility and Risk: You come together with different skill sets but a similar objective. I will mentor 5 cooperatives that e-mail me the details. You can create one within a few days by the way.

By Valden Findlay.

Lusaka, Nov. 1 – I know almost all of you know something about cooperative societies, some think it’s a way of obtaining empowerment from the government, and others take it as a requirement for donor finance. I am sure many of you actually know what it is.

Also Read: Sustaining a business in a struggling economy – Valden Findlay.

Regardless, let me briefly define it for the sake of this write-up:

“Cooperative societies are autonomous organizations formed by people who come together voluntarily to meet their common economic, social, and cultural needs and aspirations. These organizations are typically owned and democratically controlled by their members, with each member having an equal say in decision making processes.

Cooperatives can take various forms, including agricultural cooperatives, consumer cooperatives, worker cooperatives, and housing cooperatives, among others. They operate in a wide range of sectors, from agriculture and retail to finance and healthcare.

The key principles of cooperative societies, often known as the Rochdale Principles, include open membership, democratic control, economic participation by members, autonomy and independence, education and training of members, cooperation among cooperatives, and concern for the community.”

By that very definition, you would realise that cooperatives are about teamwork and bringing resources together, human and material resources. Not just to be a member waiting to be helped or paid. Contribution is a fundamental factor.

Many many times, via various avenues, to a lot of people, I have strongly advocated for cooperatives and cooperative training. I have even helped finance several. But from my experience, once the injected capital finishes, most cooperatives die. I think the reason is we have taken very little time and interest in teaching people what cooperatives are all about.

◾The first principle for a cooperative is Shared Responsibility and Risk: You come together with different skill sets but a similar objective. If you wanted to keep chickens for instance but you only had a K2,000, you can bring together 10 friends with similar interests and a K2,000 each. This will total up to K20,000 which is enough to start the business plus a 10x growth in available labour.

Because you put up your own money and the venture is run democratically with every member chipping in, your odds of success grow exponentially. And if you lose out, you’ll only lose out part of the initial K2,000 which is not cataclysmic given the circumstances.

◾The second is Growth over Profits. Because you are several individuals with different skill sets and a single goal, your venture’s success is almost certainly guaranteed. However, the key is to make sure you grow your business by a factor of the number of people in your cooperative before you begin thinking of collecting profits because the profit shares are initially very low.

Something to always make sure of is that you must always have a charter, or constitution written by you the members. Draw up a business plan and vote on everything. Do not let a single person run the cooperative even if he or she is the founder. Because in a cooperative, all members have equal say.

So what is stopping you from meeting up with like-minded people, and coming up with a business plan and a constitution? Contributing a little each in the capital pot and starting your own business?

Remember that it gives you a massive advantage and opens up opportunities. It’s a quick start hack into the proper entrepreneurship because you’ll learn a lot. So stop competing and fighting amongst yourselves and work together. It’s the only hope that you have.

I will mentor 5 cooperatives that email me the details. You can create one within a few days by the way. You can e-mail me the details when you can.

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