Youth Cooperatives for Youth Employment

byJuergen Schwettmann

International Labour Organization

The Social Economy

Many names ….

Social Economy, Solidarity Economy, Community Economy, Popular Economy, Social and Solidarity Economy, Social Enterprise, Social Economy Enterprises, Third Sector, Non-Profit Sector, Economic Alternatives, etc., etc.,

Common features ….

• Primacy of people over capital;

• Participatory management, democratic control;

• Solidarity and responsibility

• Focus on local assets, needs and capabilities.

Actors

Facts and figures

• 750.000 cooperatives with 800 million members and 100 million employees;

• 141 cooperative insurance collect 7% of the world’s insurance premium;

• 248 million of the 360 million EU-15 citizens are involved in the social economy, which contributes 8% to the Union’s GDP;

• There are 62.000 foundations in the EU-15;

• Associations in the EU-15 have 40 million members and 3 million employees;

• The 43.000 credit unions represented through WOCCU are supported by 136 million members and control about 825 million US-$ in assets.

Coops create jobs

Consumer CoopsJapan: 58,000

Coops in SouthAfrica 280,000

Coops inIndia: 13.8 million

Coops inBrazil: 300,000

Canada70,000

Coops in WesternEurope: 5 million

Coops in Ethiopia 90,000

Consumer CoopsRussia: 727,000

Common Goal, CommonBond

… invest together … negotiate together … innovate together … work together

... capital … power … ideas … skills

Whereindividualsmay lack

Cooperativemembers

Why Youth Cooperatives?

• Because young people are eager to work and live together;

• Because young people are ready to pool resources and share risks;

• Because young people uphold values and principles;

• Because young people fight for social justice.

• Because young people cooperate.

Example 1: Marang Cake, Bread and Catering Cooperative, South Africa

• Started in the year 2000 by four skilled, but unemployed youths who discovered a market niche;

• Support received from various agencies, mainly for capacity building;

• Now 14 members who earn a decent salary; the cooperative now provides advisory services to 14 emerging youth cooperatives in the area;

Example II: Organic Planet Cooperative, Canada

• Founded by five youths in 2003 as a workers’ cooperatives in the premises of a consumer cooperative that closed business;

• Received support from the local credit union after presenting a viable business model;

• Now has seven members and nine employees, who will become members after a probationary period; the coop has reached the break-even point and can pay decent wages.

Example III:Youth Cooperatives in Serbia

• Exist since 1938; today, there are 300 youth coops with 200,000 members in Serbia & Montenegro;

• Unemployed youth register with the coop, which then tries to find a suitable short-term post in a private company or the civil service;

• About 25% of youth find a permanent job;

• All coop members are covered by social security.

Lessons learned

• Have confidence to start your coop;

• Establish strong ties with the community;

• Welcome support, but not interference, from others;

• Understand and apply the cooperative principles;

• Be prepared to make sacrifices.