Community co-operatives
Consumer co-operatives
Consumer co-operatives are owned by their customers on a membership basis to provide the goods and services that they need. The member-customers finance the business by paying for these products and services.
Retail co-operative societies such as The Co-operative Group and Scotmid are consumer co-operatives. This model suits groups of people with a common need which is best met by joining forces and investing collectively. Other examples are parent-run childcare facilities and credit unions owned by their account holders.
Profits can be distributed to members by dividends or rebates. A portion will typically be invested in social, community or sustainability projects.
Community co-operatives
Community co-operatives are owned, controlled and run for the benefit of those living in an area or having a common interest. These businesses allow groups of people to develop services and keep important assets in their communities.
These can include shops, post offices, community centres, childcare, homecare, transport, housing or utilities, such as water and power.
Renewable energy co-operatives are one form of community co-operative attracting increasing interest. These allow collective investment in and ownership of renewable energy assets such as wind turbines.
Boyndie Wind Farm Co-operative in Aberdeenshire was Scotland’s first wind farm co-operative, set up in 2005 to own a share in the wind farm at Boyndie Airfield in Banffshire.