Battered by the pandemic, very small, small and medium-sized businesses are essential to the economic health of our society. What if the cooperative model was the solution for some business leaders, especially in times of crisis? Rather than trying the impossible to get their heads above water in silos, some choose to reach out to their counterparts and pool their efforts and resources.

In times of economic crisis, more cooperatives are usually created, observes Isabel Faubert Mailloux, Executive Director of the COOP Network . “In times of uncertainty like the one we are currently experiencing, we take a step back from our situation. We reflect on the meaning of our society, on corporate responsibility and the quality of services… Through its business model, the cooperative is a socially responsible business that comes under democratic communities. Members are more concerned about the well-being of communities and the quality of services than about profits.”

Preconceived ideas

Although widespread, the cooperative model remains unknown to a segment of the general population and part of the business community. Complicated to set up and not profitable, they are the subject of misconceptions and are sometimes confused with community organizations or non-profit associations. "But that is not the case," replies Gaston Bédard, CEO of the Conseil québécois de la coopération et de la mutualité (CQCM). Cooperatives are private companies in their own right, with the difference that they are collectively owned. There are no shareholders, but members who have equal rights when it comes time to make decisions. They generally have a higher survival rate than other Quebec businesses."

Their leaders make profits a means and not an end in themselves. "In times of crisis, we quickly focus on the needs of people, our members, our communities," adds Gaston Bédard. The option of intercooperation (producer cooperative) comes quickly because it carries within it human values, mutual aid and collaboration."

Another significant advantage is the cooperative investment regime which allows members of cooperatives to have tax reductions and thus reduce their risks.

Grouping, another avenue

The cooperative group is another interesting formula for entrepreneurs. “At the CQCM, we encourage the establishment of collaboration platforms so that companies share certain services,” explains Mr. Bédard. “Especially small companies whose managers are often alone. This type of model has been seen in particular in the agricultural and agri-food sector (Agropur), but also in veterinary medicine (Univet), for example. The managers remain the owners of their company, but they develop a brand in parallel, in cooperative form. The textile, restaurant or bakery sectors, in particular, would benefit from developing this model for their purchases and marketing, while respecting their company.”

The number one criterion? Evolving in converging fields and having common interests. “The stronger the usage link, the more people will be motivated to get involved,” concludes Isabel Faubert Mailloux.

There are five categories of cooperatives:

● The consumer cooperative (59% of existing cooperatives)

● The solidarity cooperative (22%)

● The producers’ cooperative (9%)

● The work cooperative (9%)

● The shareholder workers’ cooperative (1%)

The toolbox

➾ Entrepreneurial Compass , a tool to determine your business profile

➾ The 7 steps of setting up a cooperative

➾ The Coop Network , the Federation of worker-managed cooperatives, offers introductory training every month. The Coopérative de développement régional du Québec promotes and supports the creation and development of cooperatives throughout Quebec.

➾ Quebec Council for Cooperation and Mutuality

➾ Quebec Regional Development Cooperative

➾ List of 10 sectoral federations