Co-operative Business Model

Inclusive Democratic Business Models

2. Co-operative Business Model

Discover how the co-operative business model empowers members to work together and share in the benefits and decisions.

What is a Co-operative Business Model?

Imagine you and a group of friends decide to open a cafe together. Instead of one person being the boss and the others just working there, everyone chips in to run the place. This is what a co-operative business model is all about. In a co-op, everyone who gets involved has a say in how things are done. Whether you are working there, investing in it, or using its services, you get a vote on key decisions. This way, the business reflects what the group wants and needs, rather than just serving the interests of a single boss or investor.

Co-operatives can be found in many forms, from small local shops to large organisations. They help ensure that everyone involved has a fair voice and shares in the success of the business.

Introduction to Co-operative Business Model – A Video by CDS Scotland

Examples of Co-operative Business Models 

1. Argyll and the Isles Tourism Co-op (Wild About Argyll) 

Wild About Argyll, Argyll and the Isles Tourism Co-operative works as a destination management organisation for Argyll & the Isles on the West Coast of Scotland. It was formed in 2012 as a cooperative with its membership being the local marketing and sectoral groups representing in the region of 1200 business interests. 

2. First Milk 

First Milk is a dairy co-operative based in Scotland that brings together about 700 dairy farmers from across the UK. Founded in 2000, it operates on the principle of pooling resources to ensure that members receive fair prices for their milk. First Milk focuses on producing high-quality dairy products, including cheese and liquid milk, while prioritising sustainability and environmental responsibility. The co-operative model allows farmers to have a direct say in the management and direction of the business, ensuring that profits are reinvested to support their livelihoods and enhance the local dairy industry. 

Want to move your business to employee ownership or co-operative model?

Are you considering transitioning your business to a democratic model but unsure which approach is the best fit? Don’t worry! support is available to guide you through the process. 

Here are some organisations that can help you along the way.  

1. Co-operative Development Scotland (CDS)  

Co-operative Development Scotland (CDS) is the only public sector funded service in Scotland dedicated to supporting economic growth by increasing the number of co-operatives. CDS supports companies and community groups across Scotland that want to adopt employee ownership or co-operative business models.  

They can provide one-to-one sessions with a specialist advisor to help you choose the best business model for your needs and set it up. They can also provide a feasibility study to help you decide if this is the right choice for your business. If you decide to switch, their specialist advisors can advise you on how to implement the new model.  

For more information and support, visit; Contact – Co-operative Development Scotland 

2. Scottish Agricultural Organisation Society (SAOS) 

If you are considering setting up an agricultural co-op, SAOS may be the supporting organisation to contact. SAOS, the Scottish Agricultural Organisation Society, is a supporting organisation that helps people set up agricultural co-operatives in Scotland. They provide guidance, resources, and expertise to ensure co-ops are successful and sustainable. SAOS aims to strengthen the agricultural sector by promoting collaboration and shared ownership among farmers and rural communities. 

For more information and support, visit: SAOS | What We Do – Co-operation