We recently carried out some research with business advisors to get feedback around their perceptions of co-operatives and it was both an informative and eye-opening experience. We could see quite a few misconceptions across the piece, so we thought this provided the perfect opportunity to address some of these misconceptions and have created a brand-new video series called Dispelling the Myths of Co-ops. In our latest blog, marketing project manager, Helen Dickson shares the new video series.
Myth 1: A co-op is just a convenience store.
This is a myth we come across a lot from business advisors, talking to clients and in social media comments. As the Co-operative is a well-known brand with a presence in retail, banking, and insurance, a lot of people assume that is purely what co-ops are about.
However, it’s a much wider term used to describe a type of business that is owned by and run by its members. Watch the full video here:
Myth 2: Employee-owned businesses and co-ops are the same thing.
Co-operative Development Scotland provides support to those considering moving to employee ownership or setting up a co-op. Quite often, particularly with our partners that provide business support, we see confusion across the differences between these models.
There are some similarities, and some employee-owned business will identify as co-ops but not all. This video provides a simple overview:
Myth 3: Co-ops are not businesses.
Co-ops can absolutely be businesses. Co-operative Development Scotland have helped set up co-ops across a wide variety of sectors including energy, food and drink, tourism hospitality and digital. Find out more here:
Myth 4: Co-ops are not for profit.
Co-op businesses do make profit. It’s just what they do with that profit that makes them different. Check out the full video as we explain this key difference between co-ops and other business models.
Myth 5: You must choose between being a co-op or a social enterprise business model?
This is where things can get a little bit more complicated, but the key message is that being a co-op is around how the business is governed, with this model compatible with most business structures including a social enterprise. This video provides a great summary.
Myth 6: Co-ops are more relaxed than other businesses and don’t have effective management processes.
Co-ops are democratic businesses and governance is robust. Like other business they have a board of directors. Find out more about how they operate in our final myth video.