Co-op surge shows the benefits of co-operation for growth

By DOMINIC JEFF
Published on 28/06/2012 00:00

Co-operatives outpaced the wider economy last year as new businesses were formed in areas such as renewable energy and schools.

Annual figures released today by trade body Co-operatives UK show co-ops averaged growth of 1.5 per cent in 2011, more than twice the lowly 0.7 per cent recorded in the wider UK economy.

While output has remained subdued since the recession of 2009, co-operatives have proven popular, with a strong birth rate and very low level of business failure helping the sector to blossom in an adverse climate, today’s report notes.

The latest figures also reveal that, while the real level of GDP in the UK in 2011 was 1.7 per cent lower than in 2008, the turnover of the co-operative sector has grown by 19.5 per cent over the same period.

Not only have individual member-owned businesses grown, there has also been an uptick in the number of enterprises using co-operative models.

Across the UK, the member-owned economy now has a collective turnover of £35.6 billion, after experiencing an 8.9 per cent rise in the number of co-operative enterprises in 2011, to 5,933 from 5,450 the year before.

The number of co-operatives in Scotland now stands at 578, with a combined turnover in excess of £4bn.

Some of the UK’s largest co-operatives are based in Scotland, including First Milk, Martin Currie, Scotmid, Tullis Russell and WL Gore.

Sarah Deas, chief executive of Co-operative Development Scotland, said: “Co-operative models are becoming widely recognised for their role in achieving shared objectives, enhancing business performance and sustaining communities.”

She noted that the system was a “driver of business performance”, and that there were some 28,600 people employed in co-operative businesses across Scotland, contributing significantly to the development of the economy.

Co-operatives UK’s report shows that the areas seeing the largest growth in such businesses include renewable energy enterprises focused on local communities and the 242 co-operative schools now owned and controlled by communities, teachers, parents and pupils.

Ed Mayo, secretary general of Co-operatives UK, said: “This is good news for business and for our new emerging economy. This is evidence that broadening ownership and control, prioritising social and environmental impact alongside profit is a resilient alternative to austerity.”