Free seminars – development of community co-operatives
The Wales Co-operative Centre is running a short series of free seminars in 2012.
We want to encourage the development of community co-operatives that allow members to invest in the regeneration of their communities, to give people a voice and allow them to be part of the regeneration process. This seminar is aimed at people who are interested in finding out more about community co-operatives and community shares.
This seminar will provide:
- Information on how money can be raised from individuals in a community through the issuing of Community Shares. It will provide examples of communities that have used the Community Shares model to raise finance to invest in their communities and develop facilities such as community owned pubs and shops.
- Information on how you can motivate and engage community members.
- Advice on suitable co-operative structures.
- Practical tips on developing a share offer document.
- Information on the pros and cons of developing a community share initiative.
Who should attend?
- Key decision-makers and policy advisors
- Community development workers
- Community activists
- Community First co-ordinators and support staff
- Community regeneration specialists
- Economic development specialists
- Grant givers and funding bodies
- Anyone interested in setting up community share schemes
Dates:
North Wales – Llanrwst on Tuesday 10 January 2012, 10am -1pm. Closing date for this seminar is 12pm Thursday 22 December
South East Wales – Merthyr on Tuesday 13 March 2012, 10am -1pm. Closing date for this seminar is 12pm 1 March
South West Wales – Swansea on Tuesday 12 June 2012, 10am -1pm. Closing date for this seminar is 12pm 1 June.
How to book:
Download a booking form and email it to training@walescooperative.org
Post your form to: Training, Wales Co-operative Centre, Llandaff Court, Fairwater Road, Cardiff, CF5 2XP
Fax your form to: 0300 111 5051
If you have any difficulties in booking, please contact us on 029 2055 6194.
Please note the Community Co-operatives using Community Shares seminars are free to attend, but a cancellation fee applies.
Find out more about social enterprises and co-operatives, and the help that the Wales Co-operative Centre offers to them.
Want to find out about social enterprise?
Wales Co-operative Centre are running a session entitled ‘Introduction to Social Enterprise masterclass’ at Glasdir, Llanrwst on Tuesday 21st February.
This masterclass will clarify what a social enterprise is and examine real life case studies.
Participants will have the opportunity to meet a role model who has successfully set up a social enterprise
and time will be allowed for questions to be addressed such as, “What are the benefits and challenges of
setting up a successful social enterprise?” The role model, together with a Wales Co-operative Centre
member of staff, will be on hand to examine ideas for the creation of new social enterprises.
Who should attend?
- Key decision-makers and policy advisors
- Community development workers
- Community activists
- Community First co-ordinators and support staff
- Community regeneration specialists
- Economic development specialists
- Grant givers and funding bodies
- Anyone interested in setting up community share schemes
If you have any clients/contacts that you feel would like to attend, they need to complete the survey monkey booking form
Closing date for bookings is 12pm 7 February
For more information please visit our website.
Find out more about social enterprises and co-operatives, and the help that the Wales Co-operative Centre offers to them.
Could co-operatives play a bigger part in Welsh economy?
Yesterday, at the beginning of the United Nations’ International Year of Co-operatives, the Wales Co-operative Centre published a report that brings together the latest research about co-operatives in Wales. This marks the first time we have examined the current impact of co-operatives in the Welsh economy and the role they could be playing.
‘Co-operatives in the Welsh economy’, written by the Bevan Foundation, reveals that co-operatives are a dynamic, thriving sector of the Welsh economy, generating £1 billion in income and employing around 7,000 people in a wide range of sectors.
Co-operatives in Wales generated a total pre-tax profit of £19 million in 2010, with three generating profits in excess of £1 million and a further four generating profits of between £250,000 and £1million.
Our research found that social enterprises employ more people relative to turnover than mainstream small businesses and worker co-operatives have lower-than-average levels of staff turnover and absenteeism. This can be explained in part by their democratic structures, which mean workers have more opportunities to take active roles in decision making. Co-operatives are also more likely to involve women and minority ethnic groups than private businesses.
You can download Co-operatives in the Welsh Economy from the Wales Co-operative website and also find out more about the International Year of Co-operatives 2012.
Excerpt taken from the blog post ‘The Italian Way‘ by Wales Co-operative Centre Chief Executive Derek Walker.
Wales Co-operative Centre is holding several events through 2012 to celebrate International Year of Co-operatives, including the publication of three further documents.
Credit union reforms mean expansion and competing with banks
New powers for credit unions in England, Scotland and Wales will, from today, enable them to significantly expand the services they offer, and to compete directly with high street banks and other savings providers.
The changes, under a Legislative Reform Order (LRO), mean the financial co-operatives can now pay interest on savings for the first time and expand beyond their traditional customer base.
Credit unions are not-for-profit organisations owned by their members.
The reforms will allow them to provide services to community groups, businesses and social enterprises.
Robert Kelly, general manager of the NHS Credit Union for Scotland and the North of England, said: “The LRO is going to give us the opportunity to get closer to offering full services that are equitable and can compete with mainstream financial institutions like banks and building societies.
“It also gives us more potential for partnerships with a wide range of other organisations.”
The Association of British Credit Unions (Abcul) expects membership to increase as a result of the changes, which the UK government introduced as part of a commitment to promote mutuals.
There are currently about 420 credit unions across England, Scotland and Wales, with close to one million members.
The changes are designed to help individuals, businesses and other organisations access fair and affordable financial services in their communities. They will allow credit unions to provide a more effective alternative to high street banks on the one hand and high cost lenders and loan sharks on the other.
Common link restriction lifted
Until now, credit unions have been hampered by restrictions which meant all of their members had to have something in common – such as living in the same geographical area or working for the same employer.
Credit unions no longer need to prove that all the eligible members have something in common, which will mean that credit union services can be extended to new groups much more easily. For instance, a credit union providing services to anyone living or working in Pontefract will now be able to serve all the employees of a company too, even if they do not live or work in Pontefract.
Interest on savings, not dividends
Previously, credit unions could not pay interest on savings, only a retrospective dividend. Credit unions will now be able to begin to pay interest on savings, which will mean that people will be able to more easily compare the rates of return with other savings providers and it will help credit unions attract more savers.
Organisations can join a credit union
Under the old rules, only individuals were able to become members of credit unions. The new rules mean that organisations themselves can join a credit union (up to a maximum of 10% of the members) and use the financial services it provides. A community group, housing association or local employer, for example, may now be able to use a credit union to manage its money, with the added advantage that the money is kept in the community.
Credit unions can now compete with banks
Mark Lyonette, chief executive of the Association of British Credit Unions (Abcul), said: “These changes are a major breakthrough in the delivery of credit union services to communities around Britain. The new rules mean credit unions can now compete more effectively with banks and other lenders to provide fair and affordable financial services. Credit unions will be able to reach many more people, helping them to develop a savings habit, which can only be good for communities.”
More information
- Credit unions explained – the Which? guide to credit unions
- Government commits more money to credit unions – £73 million to fund the expansion of credit unions
Find out more about credit unions in Wales.
How social enterprise can transform rural life
Peter Couchman, chief executive of the Plunkett Foundation Photograph: Plunkett Foundation
Rural communities are suffering a decline of services, but Village SOS has shown how people are fighting back
Author: Peter Couchman
The issues facing rural people are well-documented: physical and social exclusion, the decline of rural services resulting from an increase in commuting, lack of affordable housing and an ageing population are all challenges that rural communities face. But a new lottery project called Village SOS is proving that social enterprise really does hold the answer to many of these issues.
It’s a common story, and one many of us in rural areas are familiar with. The struggling local pub is forced to close its doors, closely followed by the village shop and Post Office. Those residents with cars are forced to travel miles just to get bread and milk, while those without are left to rely on intermittent and unreliable public transport.
With the cost of delivering services often being higher in rural areas due to greater distances and a more dispersed population, it’s often the most vulnerable members of rural communities who are left stranded, going days or weeks without seeing or talking to anyone as both private services, such as shops and pubs, and public services, such as transport and healthcare, close down or are withdrawn.
But the tide is turning, and it’s due in part to social enterprise. Over the past 20 years or so, the number of community-owned enterprises has been steadily rising, and today there are 268 community-owned shops across the UK, helping to save around 5% of the 400 or so village shops that closed in 2010 alone.
Read the full article: The Guardian Co-operative and Mutuals Hub
Starting your own village community enterprise? The Wales Co-operative Centre provides advice and support to social enterprises and co-operatives within the Convergence area of Wales.
Beware Christmas loan sharks, says First Minister
First Minister Carwyn Jones today [13th December] urged people finding it difficult to meet the cost of Christmas this year not to take out loans from high cost lenders, even if it seems quick and easy.
The cost of a personal unsecured loan from a high cost lender of £500 paying back £17.50 for 52 weeks means that you will actually pay back £910.
The same loan from a credit union would cost about £10.83 each week, paying back a total of £563.16, a saving of more than £340.
The First Minister will talk about the impact of high cost credit on families and communities during a visit to the Save Easy Credit Union in Llanelli.
The First Minister said,“Too many people do not realise that Welsh credit unions provide savings accounts, personal loans and other basic financial products that can save them money. Credit Unions offer a real alternative the activities of high cost lenders and illegal loan sharks, by offering safe and affordable alternatives.
“Tackling poverty and financial exclusion where it persists in our communities is one of my key priorities over the next five years. Credit unions are ideally placed to help achieve this.”
The Minister also emphasised he wanted to continue to raise awareness of credit unions.
He said,“Too often we hear stories about people on low incomes and others who are most vulnerable in our society not being able to access affordable sources of credit.
“Some communities remain blighted by loan sharks exploiting vulnerable people in an environment of intimidation and violence. This has a devastating cost on individuals, families and entire communities.
“Credit unions can and do make a difference in such a situation. Having strong credit unions here in Wales will help us as we continue to build the fair and just society we all want to achieve.”
Source: News Wales
Find out more about credit unions in Wales on the Wales Co-operative Centre’s website.
Building a better way to live
When a leading housing developer embarked on a mission to build Scotland’s first sustainable village, a social enterprise model offered the best opportunity to combine innovation, partnership and social purpose. Claire McBain reports
In 2008 Wayne Hemingway, one of British’s best-known designers, reinvigorated the centre of Gateshead in Newcastle, transforming redundant buildings into a thriving business district. He believes it takes people to build solid housing and successful communities. Bricks and mortar come later. Hemingway predicts that house purchases will no longer be based on investment potential. Instead, people will seek homes in communities in which they want to lay down roots.
Kincluny Development Trust is taking Hemingway’s vision north, with plans to build Scotland’s first sustainable village. Inspired by the north-east housing shortage, intricate new technologies and a clear passion for social purpose, the development trust has proposed a new village in the heart of Aberdeenshire’s Royal Deeside. Expected to be the country’s largest sustainable construction project, the village will blend social enterprise principles and practices with 32 years of building expertise to harness the most up-to-date technologies and produce comfortable, desirable, affordable properties across the entire housing spectrum.
The development trust, a social enterprise incorporated as a limited company by guarantee, was set up to complement the growth of the village. It was initiated by CHAP Homes, a well-established north-east housing developer.
Bill Burr, managing director at CHAP Homes, says he then brought on board Aberdeen Foyer, who operate a portfolio of successful social enterprises. “It was clear that the village’s resources would need to be managed. I had heard about social enterprises and approached Aberdeen Foyer who suggested the development trust model.”
Leona McDermid, commercial director at Aberdeen Foyer, then produced a feasibility study on how the development trust might work. “Since then, we have recruited many local ambassadors,” says Leona. “Eventually, the development trust will be made up of property owners, developers, local authorities and businesses. Each householder and business will be a stakeholder through a formal ‘share’ agreement in the development trust.”
Leona has also engaged a working group made up of local people and businesses, housing associations, Robert Gordon University, Aberdeen Foyer and CHAP Homes.
“This group is key to gaining momentum,” explains Bill. “The physical place still has to be built but the foundations of the community are well underway. The working group has a clear, shared vision of what the village will look like and what it could be like to live there. It’s truly inspiring.
Leona adds that the development trust is already writing the social history of the village by thinking through how it can develop and manage shared resources for the benefit of the community that will one day arrive. “We’re setting the culture of the place, embedding sustainability and creating the potential for outstanding social impact.”
This vision has become the Kincluny mission, which is about much more than having objectives. Social purpose is at the heart of Kincluny. The development trust business model means that the village will be financially stable with the micro economy ‘locked in’ so that the community-owned social enterprise can unlock and build social capital for its people.
More than a parish council or committee, Kincluny will turn sustainability principles from rhetoric in a glossy brochure to a day-to-day community reality. CHAP will initially invest £400m towards land, building work and amenities, such as a school, shops and renewable energy. But the village will take responsibility for managing its own income and amenities, promoting community life and securing future development. This is real sustainability.
Kincluny will enhance local amenities, not only for the new village but for surrounding communities too. A primary school and leisure facilities will be developed. Employment and entrepreneurial opportunities will be created. Approximately 150 construction jobs will be generated each year over a ten year period and permanent employment will be available in the community itself. Training will be available in modern sustainable construction techniques and new technology as the build develops. The village will incorporate low cost workspace for start-up local businesses. Tangible revenue will be generated from business unit rentals, allotments and renewable energy sources. All profits generated through Kincluny Development Trust will be reinvested in the village to sustain and develop the village according to need. This, coupled with CHAP’s donation of £1,000 from the sale of each of the 1,500 properties, will provide a solid, long-term income for the development trust.
With prices ranging from approximately £90,000 to £500,000, this genuine community housing development aims to be truly open to all. Kincluny promises at least 30% of the mixed tenure homes will be affordable to those on low incomes, which is particularly attractive due to rural issues and high levels of homelessness.
The organisations involved in leading the development of Kincluny see this as an opportunity to pioneer how housing is developed, says Leona. “You can build a village or a town with the best designs in the world but it’s people who make it a desirable place to live and work. Our experiences of operating social enterprises and working with young people have now given us the opportunity to influence the development of a new community. For us, the most exciting aspects are the creation of affordable housing for our young people and the new jobs that will be created, not just around the creation but also the upkeep of the village.”
Kincluny will be built on a former quarry, a brownfield site, and will designed to the highest specification in terms of renewable energy, conservation and environmental technologies. For Bill, the timing of the development was ideal given that the quarry site is nearing the end of its operational use. “To be able to develop the quarry as a catalyst for sustainable design was an exciting option for us and, unlike other developers, we are promising a carbon neutral target. But most of all, it’s the chance to develop much needed mixed tenure housing in the north-east. I hope other developers will follow suit – Kincluny could be very replicable.”
There is no doubt that Kincluny challenges how new developments are thought through. “It has a vision for community involvement that goes way beyond the obligatory public consultations,” adds Bill. “The project has the potential to alter the perception of creating and managing community life.”
Leona agrees, maintaining that social enterprise has paved the way for Kincluny to pioneer a new era of housing developments: “I think it has the potential to influence how new communities in particular are thought through and managed. Normally, development trusts start because there is an issue. This development trust has started because it values the social capital of the community just as much as the bricks and mortar and infrastructure.”
Facts and figures:
Who is involved? CHAP Homes and Aberdeen Foyer.
What will be built? 1,500 mixed tenure homes, business and amenities.
Where did inspiration come from? Other development trusts and the Garden City Movement.
What is the investment? £400m from CHAP Homes to go into land, building work and amenities, such as a school, shops and renewable energy. CHAP will also donate £1,000 from the sale of each property.
Source: Social Enterprise Live
Co-operatives offer real empowerment, strong ethics and business discipline
Ed Mayo, secretary general of Co-operatives UK
As the government launches backing for staff-led mutuals, the arguments for worker-run business are being aired again.
Author: Ed Mayo
Mutuality is not a quick fix. Does the new flavour for co-operatives and mutuals in public services stand a chance of succeeding? As the government launches its support programme for staff-led mutuals, this is a good time to consider this question.
It is true that there has been a swath of work on “social innovation” in recent years, but little of this has touched the way that public services are delivered. Too often such work has been funded out of extra spending, which is not going to happen now; worse, it was too often about change on the margins – such as an array of creative initiatives on public health and living with long-term conditions that today are not so much being cut as brutally murdered.
The core idea of co-operatives is that the people involved in a business are the best people to guide and own it. It is not for everyone.
If you like privatisation and believe in the great mythology of corporate shareholder value, it is not for you.
If you believe that no public service should ever be run as a business, then there is no need to change. (But watch out for the privatisation crew!)
But if the key people involved choose to have a go at running their service in a new way, then there are things they would find quite familiar about co-operative or mutual social enterprise.
Read the full article at: The Guardian PolicyHub
The Wales Co-operative Centre provides advice and support to social enterprises and co-operatives within the Convergence area of Wales.
High hopes for the Vauxhall Motors Community Sports Project
Vauxhall Motors have launched a community programme aimed at taking the club to ‘another level’.
There are high hopes for the Vauxhall Motors Community Sports Project, which will see the club run a series of activities and initiatives which encompass a wide range of issues such as social inclusion, education and crime prevention.
The project is being run in partnership with the award-winning social enterprise Vi-Ability and its founder Kelly Davies MBE, an ex-international football player with 36 caps for Wales.
Vauxhall chairman Alan Bartlam said: “This is one of the best things to happen to this club in a good while. We need to lift the club on to another level and this is the ideal opportunity for the club to really contribute to the community.”
Vauxhall have also brought in former Colwyn Bay managing director Darren Cartwright, who will act as an advisor to the club’s executive committee and will help the club drive forward a new marketing and commercial plan.
Vauxhall Motors are looking to establish partnerships with other community organisations in the area and are already exploring an number of funding opportunities to help develop the programme. Email the community team at: vmfccommunity@live.com.
Source: Ellesmereportpioneer.co.uk
The Wales Co-operative Centre provides advice and support to social enterprises and co-operatives, Vi-Ability, within the Convergence area of Wales.
Worker co-operatives – what are the available funding routes for developing employee owned businesses?
Rob’s plan to take over Valley Bara is spoilt but are business angels the only source of finance available to employee buy-outs?
Financing an employee buy-out to is a critical aspect of the business’ development. So, what sources of finance are available?
Personal Investment
As we’ve seen in the Baker Boys series, the employees of Valley Bara used their redundancy money to invest in the business. This is common in employee buyouts in these circumstances, and although it is unusual for employees to be able to raise the full cost of buying the business, it is essential to demonstrate to other funders that they are making some form of financial commitment to the enterprise. There’s also evidence to show that there are higher levels of productivity when employees have an actual financial stake in the business.
A Bank Loan
Although bank lending to businesses is severely reduced at the moment banks are still looking to support SME’s. Banks are commonly used as part of the finance package when employees are looking to buy-out a business. Banks can provide necessary finance to support the purchase in the form of debt finance and overdraft facilities to help get the business started.
Grant Funding
Although the number of business grants available has greatly reduced, there are still some sources of grant funding that can be accessed to support an employee buy-out. Local authorities may have business grants available to support the purchase of assets for the new business, whilst the Welsh Government have repayable investment grants available to businesses, where repayment of the investment is based on the future sales royalties of the business.
Specialist Funding
There are a number of organisations that offer specialist loan finance specifically for employee buy-outs.
Co-operative and Community Finance provide loan finance to employee owned businesses that operate according to co-operative principles, such as ‘one member one vote’.
Finance Wales is an investment fund which makes commercial investments in Wales-based businesses with the potential to grow and it can provide finance to help support the employee buy-out process.
The Wales Co-operative Centre has used both of these providers to finance employee buy-outs.
A Business Angel
Xenos is a subsidiary agency of Finance Wales and offers a business angel matching service. Business angels can bring necessary skills and experience that the new employee owned business may find essential in its early stages of development. However, their investment may be in the form of equity, so they would have an ownership stake in the business. Other business angel services are available throughout the UK, but ensure that you find the angel that is right for you and for your business.
Venture Capital
Many venture capital funds are now looking at providing debt finance to businesses as opposed to equity. This is a better proposition for employee buy-outs as it means they won’t have a control stake in the business, so ownership can remain with the employees. Venture capital funds would normally only be appropriate for large buy-outs.
Pulling together the funding package for an employee buy-out is a critical element of the buy-out process. The Wales Co-operative Centre can help with searching for the correct funding approach for your business.
Find out more about the Wales Co-operative Centre’s business succession service here
The Wales Co-operative Centre was set up thirty years ago and ever since we’ve been helping businesses grow, people to find work and communities to tackle the issues that matter to them. Our advisors work co-operatively across Wales, providing expert, flexible and reliable support to develop sustainable businesses and strong, inclusive communities.
