Did you know cooperatives are versatile legal entities that provide multiple opportunities for rural Nebraska communities to bolster their local economy by starting new businesses, keeping businesses open and creating a thriving main street?
Consumer/retail cooperatives are owned by the people/community or owned by members who shop there. One particular business is retail food sales. In the U.S. today, this is usually a natural foods store, but historically food cooperatives have tended to operate supermarkets and small grocery stores. Many small rural communities are on the verge of losing their grocery store or have seen their store close. Does this describe your community?
Worker cooperatives are businesses which are owned by the employees. This is one of the most versatile forms of cooperatives and can be used even by a small group of business partners operating, for example, a bakery, bookstore or cafe. Is your community looking to expand its main street retail, this may be an option for consideration?
Producer cooperatives are owned by people who produce the same type of goods. Such cooperatives will often operate shared facilities for processing, marketing, and/or distribution. These are generally agricultural co-ops; however, this form has also been used by artists, carpentry, and others. It can have some similarity to worker cooperatives. These are also sometimes known as marketing cooperatives.
Purchasing/service cooperatives are used by independent business owners to raise their visibility and cut costs for services such as payroll and insurance. They are organized to give members more control over services offered. Some examples of these include hardware stores, hotels and fast food restaurants, childcare, health care, or pharmacies.
Housing cooperatives are owned by the residents. This can range from a single house to apartment complexes with thousands of units. It also includes co-housing projects, in which dozens of homes are cooperatively owned. Condominiums are a relative of co-op, although with condos each member owns their own unit; in a cooperative, each member owns a share of the co-op that owns all of the property. Housing cooperatives are a unique form of home ownership. They allow homeowners the opportunity to share costs of home or building ownership.
For information on available program assistance to enhance an existing cooperative or start a cooperative contact Nebraska USDA Rural Development, Deborah Drbal at 402-437-5558 or deborah.drbal@usda.gov.
Categories: Nebraska, Business