Frequently Asked Questions
With what types of group enterprises does NCDC work?
The Nebraska Cooperative Development Center works with new or expanding "multi-owner" businesses. This could include Cooperatives, Limited Liability Companies, Associations, or other multi-owner business structure. We want to make it clear that we don’t work with just those businesses that are forming as a "cooperative". In fact, many of the projects we have worked with over the last 6 years are legally formed as a Limited Liability Company, whose by-laws are based on cooperative principles, but for one reason or another, the LLC was their best legal choice. Our focus is creating businesses, or helping to expand an existing business, that harnesses the power of people working together, sharing their resources and talents, to form a "cooperatively owned" business. The cooperative business model is one that many times is overlooked in development. We believe that people working together creates a power that greatly enhances their chances for success.
What is a cooperative?
A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.
When and where was the first successful cooperative formed?
The first successful cooperative was organized in the United States in 1752 when Benjamin Franklin formed the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire—the oldest continuing cooperative in the U.S. Later outside of the U.S. in 1844, the Rochdale Equitable Pioneers Society opened a cooperative store on Toad Lane in Rochdale, England. These pioneers wrote down a set of principles to operate their food cooperative which contributed to their success and spread to other cooperatives around the world. The successful establishment of the cooperative in Rochdale marks the beginning of the modern cooperative era.
What are the Cooperative Principles?
- Voluntary and Open Membership: Cooperatives are voluntary organizations, open to all persons able to use their services and willing to accept theresponsibilities of membership, without gender, social, racial, political or religious discrimination.
- Democratic Member Control: Cooperatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions.
- Member Economic Participation: Members contribute equitably to, and democratically control, the capital of their cooperative.
- Autonomy and Independence: Cooperatives are autonomous, self-help organizations controlled by their members.
- Education, Training, and Information: Cooperatives provide education and training for their members, elected representatives, managers, and employees so they can contribute to the development of their cooperatives. They inform the general public about the nature and benefits of cooperatives.
- Cooperation among Cooperatives: Cooperatives serve their members most effectively and strengthen the cooperative movement by working together through local, national, regional, and international structures.
- Concern for Community: Cooperatives work for the sustainable development of their communities through policies approved by their members.
