Social Enterprises and Co-operatives

Greenwich Co-operative Development Agency was established in 1982. For over 25 years we have been supporting 300+ co-operatives, community initiatives and social enterprises by providing advice on alternative business ownership models. We have supported the creation of many successful social enterprises both from within the community and former public sector managed services. 

An Introduction to social enterprises and co-operatives.

A social enterprise is a business with clear social objectives whose surpluses are reinvested for that purpose rather than maximise profits for shareholders and owners as conventional businesses do. They are widely used in meeting community and social needs.

Within this wide definition many type of businesses and organisations may be defined as a social enterprise and they may include unincorporated organisation, trusts, limited companies (many of them companies limited by guarantee), industrial and provident societies (IPS), community interest companies (CIC) and charitable incorporated organisations.

If you are interested in establishing a social enterprise, it is important to understand and obtain advice about the different structures and the legal implications of choosing one. We have many years of experience establishing social enterprises and we can guide you in choosing the best possible structure ensuring that there is proper governance and control of the enterprise.

Social enterprises - as all businesses - need to develop and present their specific business case in order to raise funds. If required, we can support you in determining if there is a demand for your proposed product or service, helping you to conduct market research and establishing a market strategy. Like all businesses, social enterprises need to determine what is the real cost of establishing the business in terms of both: capital requirements and other expenditure in advance before you obtain money through your sales. Knowing your breakeven levels and pricing are vital in those first few months of trading, thus, financial information needs to be included as part of your business case including the flows of cash faced by the business and how much a business is worth during the first 2-3 years of operation. Meeting legal requirements including insurance cover, health & safety, employment and trading law need to be understood and implemented before you start. If you are searching for premises, then, leases or licences need to be understood and signed with the advice of a qualified professional. 

Co-operatives

Co-operatives are businesses owned and controlled on an equal basis by their members. They follow simple but highly effective rules of one member one vote ensuring democratic control and local engagement. There are many different types of co-operatives and one may meet your needs. There are consumers co-ops, financial co-ops, consortiums, community co-operatives and workers co-ops to mention a few. The wider co-operative movement in the UK supports established and new co-operatives anywhere in the country. The support is in the form of co-operative advice that may allow you to choose a specific model and develop a plan for the launch of the co-operative. For trading co-operatives the support is in the form of a number of days of advice in the area that is most urgent to your needs. If you are a co-operative or you are thinking about establishing a co-operative please contact us to discuss your case.