unl nebraska cooperative development center cooperatives for rural business creation jim crandall,...
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UNL Nebraska Cooperative Development CenterCooperatives for Rural Business
Creation
Jim Crandall, Associate DirectorHoldrege, NE
[email protected] Extension Entrepreneurship Action Team
Brief Discussion Topics• Cooperative Businesses Enterprises (Multi-
owner)• Characteristics of Cooperatively Owned
Businesses• Using the Cooperative Business Model for
business creation in your community
Business Entities in Nebraska• Sole Proprietor• General Partnership• Limited Partnership• Limited Liability Partnership• Corporation
– “S” Corp– “C” Corp
Business Entities• Limited Liability Company
• Cooperative
• Limited Cooperative Association
Cooperatives Are a Type of Corporation
• Multiple owners who are user members• Variety of goods and services• Physical facilities• State chartered• Members are investors• Owned and controlled by members who
use its services
Cooperatives Have Unique Principles
User - Owner
User - Control
User - Benefit
User-Owner Principle
The people who own and finance the business are those who use it.
User-Owner Principle• Investment in the business is to provide access
to services
• Investment is not to realize a financial return on that investment
Business Functions of Cooperatives or LLC’s
Three Core Functions• Marketing - extend control of
members’ products through processing, distribution, and sale
• Purchasing - providing affordable supplies and goods
• Service - provide needed services
Community Ownership in a Cooperative
• Provide critical services to the community• Capitalize on community pride• Solve succession of ownership problems• Provide new entrepreneurship opportunities• Community ownership-cooperative ownership• Owners shop at home
Cooperatively Owned Businesses
• Working together shares talents, skills, and resources of several individual owners
• Working together spreads financial risk
Not necessarily a main street business• Locally or Regionally Owned Cooperative
Business--Provide critical services to members• Capitalize on local production/products
– Provides or establishes an accessible market– Provides for access to larger market– Provides new entrepreneurship opportunities
Locally or Regionally Owned Cooperative Business• Locally Owned, Locally Grown
– Board of Directors guides the business growth to benefit the member-owners
• Members guide business through investment in the cooperative and selection of Board of Directors
Nebraska Cooperative Development Center Programs
• Providing technical assistance to groups– Group Facilitation– Business Planning– Feasibility – Market analysis– Education and Training– Business creation
• Member recruitment
NCDC Team
Dr. Larry Van Tassell, UNLExecutive Director Department of Ag Economics
Jim Crandall, NCDCCooperative Business Development Specialist
Elaine Cranford, NCDCCooperative Business Development Specialist
Linda Tesch, Administrative AssistantAmanda Bergstrom, Graduate Assistant
Nebraska Cooperative Development Center
Jim Crandall11854 730 Rd.
Holdrege, NE 68949
UNL Extension Entrepreneurship Action Team