UNL Nebraska Cooperative Development Center Cooperatives for Rural Business Creation Jim Crandall, Associate Director Holdrege, NE UNL 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 Ownershipin 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, UNL Executive Director Department of Ag Economics Jim Crandall, NCDC Cooperative Business Development Specialist Elaine Cranford, NCDC Cooperative Business Development Specialist Linda Tesch, Administrative Assistant Amanda Bergstrom, Graduate Assistant

Nebraska Cooperative Development Center Jim Crandall Rd. Holdrege, NE UNL Extension Entrepreneurship Action Team