Glossary

Advice and guidance given to new or existing businesses to help them start trading, manage their resources effectively and develop further.

An organisation jointly owned and democratically controlled by all its members.  Co-operatives are trading enterprises, providing goods and services and generating profits which are distributed according to the democratic decision of the members.  For more information, read the ICA´s Statement on Co-operative Identity.

A group of businesses who join together to do something collectively, for example, share equipment, run a marketing campaign or bulk buy materials.

An agency like the Wales Co-operative Centre which provides specialist advice and guidance to co-operatives and people wishing to set up a co-operative.

Any group of people with a common interest.  They may live or work in the same area, work for the same employer, belong to the same association, share a hobby, or simply have a common need such as a need for affordable childcare.

A co-operative set up by a group of people from the same community to deliver a product or service for that community.

A legal structure under which the Directors guarantee a contribution to its assets (normally a nominal £1) should the company go bankrupt.  It is the most commonly used legal structure for social enterprises.

A business which is owned and controlled by the people who consume its products or services (as opposed to worker co-operatives which are owned and controlled by their workers).  Examples include credit unions, food co-operatives, housing co-operatives and childcare co-operatives.

A financial co-operative owned and controlled by its members (the people who use its services).  The members of the credit union pool their savings together; these savings then provide a pool of funds from which loans can be made. Credit unions are managed and controlled by a volunteer Board of Directors which is elected from among the membership.

An advisor qualified to provide support and guidance to businesses.

The board of directors in a co-operative holds a key position between the membership and any paid management.  They are responsible for preserving co-operative principals, safeguarding assets, protecting the investment of members, setting policy and planning for the future.

A business providing goods or services and generating profits.

One which is not managed purely to maximise profit, but which takes account of values such as honesty, openness, social responsibility and caring for others.

The way in which a co-operative organisation is managed.  Good governance can be measured by the quality of management in pursuit of business objectives; the level of management accountability; the openness and transparency between directors and members; and the level of membership recruitment and involvement.

A legal structure used by a broad range of co-operatives because the legal framework regulating I & P societies is more sympathetic to social benefit and co-operative organisations. However, this type of structure takes longer to set up and is less flexible.

The legal form and constitutional arrangements for an organisation which govern the way decisions are taken, how assets and profits are used, and the relationship between key stakeholders.

A type of secondary co-operative where individual businesses come together to market their goods or services, for example, a plumber, electrician and carpenter who market themselves under one name.

A co-operative member is an owner of that co-operative.  He or she might be a consumer of the co-op’s services, or a worker within it.  Through a membership fee, members provide capital to run the business, have an equal right with the other members to decide how the co-operative is run and elect a board of directors.

The process by which public bodies such as local authorities source goods and products from suppliers.  Some local authorities actively seek to procure from social enterprises.

The standard legal form for a limited, public company in the UK.  Plcs are controlled by their owners or investors (not the workers or consumers) and are usually managed for profit.

Services regarded as a necessity by the majority of the population, such as health care, education, public transport, water supply, power supply and housing.  These are areas traditionally dominated by public and private sector companies but where co-operatives are beginning to play an important role.

A process to improve the quality of life within a given community or area.  This includes increasing economic activity amongst residents, reducing crime, creating new businesses and tackling problems such as alcohol and drug dependency.  Community co-operatives make a valuable contribution to regeneration by empowering those communities to take control of their own services, creating jobs, and keeping the profits within the community.

Otherwise known as incorporation, the registration process creates a separate legal identity for the business which is separate from its members or directors.  This means that members and directors can limit their liability if the company goes bankrupt.  Incorporated legal structures include Companies Limited by Guarantee and Industrial and Provident Societies.  Registration, or incorporation, is not compulsory – groups can chose to remain unincorporated.

A co-operative formed when a group of co-operatives join together to do something collectively, for example, share equipment, run a marketing campaign or bulk buy materials.

A sector of the economy which includes organisations outside the public and private sector, for example, voluntary organisations, community groups, religious organisations and not-for-profit businesses.

Transferring ownership of a company from the current owner to the workforce, in the event that the owner wants to leave.  Following succession, the business might become a worker co-operative.

Transferring business ownership to the workforce to create a worker co-operative; a method of creating employee ownership or worker ownership.

A business which is owned and controlled by the people who work in the business (as opposed to consumer co-operatives which are owned and controlled by their customers).