SOLVING CHALLENGES TOGETHER CO OPERATIVE INITIATIVES IN CANADA

Transcription

1 SOLVING CO OPERATIVE INITIATIVES IN CANADA 1

2 STABLE ECONOMIC GROWTH One of the best things about the economic role of co operatives is the fact that our model produces growth with smaller fluctuations allowing communities and employees to enjoy more security and stability. 3X Between 2009 and 2010, co operatives added 8.7% value-add nearly triple the 3.3% growth rate of the economy. SOLVING 1

3 JOBS Co operatives employed 270,000 Canadians directly in Our direct contribution to GDP was $22.5 Billion. 3.8% 614K Of all jobs in Canada. Full-time equivalent jobs. GENERAL CO-OPS 130, ,183 CREDIT UNIONS 109, ,912 CO-OP INSURANCE + INVESTMENT FTE, PERSON-YEARS DIRECT INDIRECT 29, ,988 TAXES CO-OP PRODUCTION TAXES 2, PRODUCT TAXES Taxes paid by co operatives at local, provincial, and federal levels, as well as taxes induced by other spending, provide nearly $11.68 billion in revenues for governments. $11.6 Billion Generated for government services. HOUSEHOLD INCOME TAXES 5,481 HOUSEHOLD SALES TAXES $ MILLIONS 2, PROPERTY TAXES ECONOMIC VALUE ADD TO GDP GENERAL CO-OPS 7,408 10,851 Co operatives, credit unions and co operative insurance companies had a direct economic impact (GDP) of $ Billion in 2010 and through spinoff impacts, the overall impact to the Canadian economy was $ billion. This represents about 3.4% of Canada s total economic activity in Source: Economic impact analysis of co-operatives in Canada for the years 2009 and 2010, Karaphillis and Duguid 3.4% Of Canada s total value-add. $54B In value-add created in the economy. GDP, $ MILLIONS DIRECT INDIRECT CREDIT UNIONS 8,333 11,218 CO-OP INSURANCE + INVESTMENT 6,767 10,075 2

4 THE CO OPERATIVE MODEL IS NOT AN EXPERIMENT IN CANADA. ITS POTENTIAL IS PROVEN. We recognize the vitally important role that co operatives play in our economy and in communities across the country. With over 18 million Canadians who are members of the more than 9,000 co operatives across the country, these innovative enterprises create jobs and contribute to regional economies where private businesses would not see the desired returns on equity particularly in rural areas. Justin Trudeau, Co-op Week message 2015 SOLVING 3

5 IN CANADA Our members help provide steady growth in the economy, fill gaps in rural and remote communities, build enterprises that can compete globally, and contribute to social and environmental progress. There are 9,000 co operatives and mutuals in Canada, and 18 million of us are members of a co operative. Find out how we can help with just about anything the Canadian imagination can dream of doing. AROUND THE WORLD Co operatives are thriving and providing economic opportunity and social benefits. Here at home, you might not realize that some of the most useful and successful enterprises are co operatives. 250 MILLION JOBS WORLD-WIDE $2.9 TRILLION DOLLARS (USD) WORLD-WIDE TOTAL TURNOVER IN

6 THE POTENTIAL OF CO OPERATIVES FOR CANADA Political debate in recent years has been marked by a discussion of whether it s possible to have strong enterprises and achieve a broad range of social and community goals as well. Canadians know this is not only desirable, but entirely possible. The co operative approach has proven to be remarkably successful, building global class companies that provide hundreds of thousands of great jobs, as well as anchoring local enterprises in rural and remote communities. Our members have shown that a triple bottom line is not a dream, but a reality we can expand. SOLVING 5

7 BURNING ISSUES TO WHICH WE CAN CONTRIBUTE SOLUTIONS. Some of the most important challenges Canada faces are tailor made for co operative solutions, and our members are happy to participate in the debate about how best to accomplish national goals: AFFORDABLE HIGH SPEED BROADBAND OPPORTUNITY FOR FIRST NATIONS MORE RENEWABLE ENERGY SOURCES MORE ENTREPRENEURIAL OPPORTUNITIES LINKING TRADE OPPORTUNITY WITH PRODUCERS How can high speed broadband be built and offered affordably in every corner of Canada? How can our future economic and social development provide important, durable, shared opportunity with First Nations? How can we harness the desire to introduce more renewable energy sources into our lives and help reduce emissions, affordably? If large companies are hiring fewer young people, can co operatives provide entry level and entrepreneurial opportunities? As Canada pursues more open trade relations around the world, how can co operatives help more producers gear up to take advantage of the opportunities? 6

8 HOW CAN WE DO MORE? The co operative approach is a great fit for many of Canada s top priorities as the country turns 150. Whether its offering new models for the economic success of our cultural industries, and the creation of new viable forms of news media, or clean energy enterprises to harness scientific and technological innovation, the possibilities are virtually endless. SOLVING 7

9 OUR SIX POINT PLAN FOR SOLVING : 1 CO OPERATIVE MODELS FOR STABLE GROWTH 2 INVEST IN INNOVATIVE CO OPERATIVE INITIATIVES 3 EXPLORE MODELS FOR UNDERSERVED MARKETS 4 LEVERAGE TRADE OPPORTUNITY 5 THE ROLE OF CO OPERATIVES IN NATIONAL POLICY 6 RAISE AWARENESS OF THE CO OPERATIVE MODEL Create a national conversation on the idea of using co operative models to fill in gaps, create stronger more stable growth. Co-finance collaborative initiatives that will achieve the government s priorities. Allow Canadians to more easily invest in their co-operatives and mutuals. Promote the examination of co operative models in underserved markets and underserved geographies. Ensure Canada s co operative enterprises are directly engaged in how to fully leverage the opportunities that new trade initiatives (e.g. China) may present. Consider fully the role that co operative enterprises can play in the next stage of national policy on Innovation. These solutions can be more broadly used if better known, and government has the tools to help. HOW CAN GOVERNMENT HELP? Co operatives and mutuals require attention, encouragement and support to thrive. It is in the Government of Canada s interest to educate business support personnel to recognize when a business opportunity is well suited to collective or community ownership. These business support personnel should be aware of the co operative model and know how to direct co operative entrepreneurs to the services they need. Providing co operative entrepreneurs with equal access to programs and services, and to sources of capital should also be made a priority of the government s Innovation Agenda. 8

10 THE INNOVATION AGENDA We are ready to contribute to the design and delivery of the government s planned Innovation Agenda on behalf of our members. The following suggestions reflect CMC s initial assessment of how co operatives can deliver on policy objectives outlined in Budget 2016 and in the Ministerial mandate letters: As with any startup, incubating emerging co operative enterprises that need access to shared resources and advice in their formative period is crucial. The co operative and mutual sector offers specialized knowledge of by-laws, governance, and business planning, along with technical assistance, advisory services, education and training. Acceleration of high potential sectors, where co operatives are well established, can directly impact the success of the Government of Canada s Innovation Agenda. Specifically, major opportunities exist in renewable energy (biomass, wind and solar), personal services (home care, seniors, health and wellness) and in the sharing economy (on demand service platforms in particular). Both the Industrial Research Assistance Program and the National Network for Business Innovation can embrace co operative clusters, resource sharing and investment in R&D for high potential and emerging sectors. SOLVING 9

11 The Government s Social Innovation Strategy would benefit significantly by supporting the creation of new co operatives with a social purpose. Co operatives have always been a business structure preferred by communities as a solution to identified needs where private equity would not see the desired returns on investment. Economic development for Indigenous and rural communities could see better and faster benefits by harnessing the co operative business model. The co operative and mutuals business model shares collective values with indigenous communities and also adapts well to opportunities in remote and rural settings. An area of emphasis for co operative knowledge sharing networks is business succession. For business owners who will be retiring, transitioning to a co operative model can be an efficient exit strategy. Government support for education and proactive consulting services can facilitate business transitions in the coming years. 10 CMC members including well-established co operative and mutuals organizations across Canada are enthusiastic about playing an active role in the conception, planning and delivery of any proposed business development activities. Our development network exists in every region, urban and rural and works in almost every economic sector. In 1971, Mountain Equipment Co operative was founded by enthusiasts who saw a way to innovate in the retail sector to make high end climbing gear affordable in Vancouver. Today they serve over 4 million member owners by providing that same value, in addition to making real impacts on environmental sustainability through Green Building and Responsible Sourcing programs.

12 CANADIAN VALUES & CO OPERATIVES THE CO OPERATIVE MODEL IS NOT AN EXPERIMENT IN CANADA. ITS POTENTIAL IS PROVEN. SOLVING 11

13 The history of Canada is a unique story of a small population building a great economy and a generous society. The values of communitarianism and entrepreneurship have blended well in this country, and this mix will be even more important in the future. Younger generations of Canadians show a strong desire to create and work in enterprises that serve both economic aspirations and reflect their social conscience, including environmental responsibilities. But much more can be done by harnessing this model to meet next generation challenges and opportunities. As the rest of the world wrestles with the issue of how to serve both economic needs and social values, Canada can continue to set a good example, and co operatives can help write the next powerful chapter of Canada s history. 12 Modo was founded in 1997 as a result of an SFU thesis project to get more people to share fewer cars. Now, with 16,000 members, 400 business, 100 building developers and several local municipalities using Modo s app-driven car sharing service, Modo is still focused on maximizing member service, not profits.

14 CO OPERATIVES & MUTUALS CANADA BUILDING A BETTER WORLD, NOW Co operatives and Mutuals Canada is the national association representing co operative and mutual businesses, sector federations and provincial associations. Our goal is to help policy makers find the innovations that will help them meet their agenda priorities by harnessing the potential of co operative solutions. SOLVING 13

15 OUR MEMBERS The Agency for Co operative Housing Agropur coopérative Alberta Community and Co operative Association Alberta Federation of Rural Electrification Associations L Alliance des caisses populaires de l Ontario Arctic Co operative Development Fund Arctic Co operatives Ltd. British Columbia Co operative Association Caisse financial group Canadian Association for Studies in Co-operation Canadian Association of Mutual Insurance Companies Canadian Credit Union Association Canadian Worker Co operative Federation Concentra Financial Services Association Confédération québécoise des coopératives d habitation Conseil acadien de la coopération (NB) Conseil coopératif acadien de la Nouvelle-Écosse Conseil de développement économique de l Alberta Conseil de développement économique des municipalités bilingues du Manitoba Conseil de la coopération de l Ontario Conseil de la coopération de la Saskatchewan Conseil québécois de la coopération et la mutualité Co operative Enterprise Council of New Brunswick Co operative Housing Federation of Canada The Co-operators Group Ltd. La Coop fédérée CoopZone The CUMIS Group Ltd. Federated Co operatives Ltd. Desjardins Group Fédération des coopératives d alimentation du Québec Fédération des coopératives de paramédics du Québec Fédération des coopératives de santé et de services à domicile du Québec Fédération des coopératives du Nouveau-Québec Fédération des coopératives funéraires du Québec Federation of Alberta Gas Co-ops Ltd. Fédération québécoise des coopératives en milieu scolaires Fédération québécoise des coopératives forestières Gay Lea Foods Co operative Ltd. GROWMARK, Inc. Health Care Co operatives Federation of Canada Manitoba Cooperative Association Inc. Mountain Equipment Co-op (MEC) Newfoundland-Labrador Federation of Co operatives Northumberland Co operative Ltd. Nova Scotia Co operative Council Ontario Co operative Association Ontario Natural Food Co operative PEI Co operative Council Saskatchewan Co operative Association UFA Co operative Ltd. AUXILIARY MEMBERS Calgary Co operative Association Ltd. Centre for the Study of Co operatives, University of Saskatchewan Co operative Management Studies, Saint Mary s University IRÉCUS, Université de Sherbrooke 14 VISIT US ONLINE AT: CANADA.COOP

16 ABOUT CO OPERATIVE BUSINESSES Allowing local and community ownership to establish businesses that can compete around the world; Pursuing longer-term and sustainable business strategies; Providing competitive options for consumers in almost every economic sector; OUR SIX POINT PLAN FOR SOLVING : 1 CO OPERATIVE MODELS FOR STABLE GROWTH 2 INVEST IN INNOVATIVE CO OPERATIVE INITIATIVES Create a national conversation on the idea of using co operative models to fill in gaps, create stronger more stable growth. Co-finance collaborative initiatives that will achieve the government s priorities. Allow Canadians to more easily invest in their co-operatives and mutuals. Providing high quality and stable employment for Canadians; Distributing wealth in communities they serve; Building businesses that are trusted by the public; Diversifying our economy and mitigating risk for Canada; Prospering in markets where returns on equity are too low to attract private business. 3 EXPLORE MODELS FOR UNDERSERVED MARKETS 4 LEVERAGE TRADE OPPORTUNITY 5 THE ROLE OF CO OPERATIVES IN NATIONAL POLICY 6 RAISE AWARENESS OF THE CO OPERATIVE MODEL Promote the examination of co operative models in underserved markets and underserved geographies. Ensure Canada s co operative enterprises are directly engaged in how to fully leverage the opportunities that new trade initiatives (e.g. China) may present. Consider fully the role that co operative enterprises can play in the next stage of national policy on Innovation. These solutions can be more broadly used if better known, and government has the tools to help. SOLVING 15