1. UNL Nebraska Cooperative Development Center Cooperatives for Rural Business Creation Jim Crandall, Associate Director Holdrege, NE jcrandall3@unl.edu UNL Extension Entrepreneurship Action Team

2. Brief Discussion Topics Cooperative Businesses Enterprises (Multi- owner) Characteristics of Cooperatively Owned Businesses Using the Cooperative Business Model for business creation in your community

3. Business Entities in Nebraska Sole Proprietor General Partnership Limited Partnership Limited Liability Partnership Corporation –“S” Corp –“C” Corp

4. Business Entities Limited Liability Company Cooperative Limited Cooperative Association

5. 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

6. Cooperatives Have Unique Principles User - Owner User - Control User - Benefit

7. User-Owner Principle The people who own and finance the business are those who use it.

8. User-Owner Principle Investment in the business is to provide access to services Investment is not to realize a financial return on that investment

9. 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

10. 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

11. Cooperatively Owned Businesses Working together shares talents, skills, and resources of several individual owners Working together spreads financial risk

12. 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

13. 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

14. Nebraska Cooperative Development Center Programs Providing technical assistance to groups –Group Facilitation –Business Planning –Feasibility –Market analysis –Education and Training –Business creation Member recruitment

15. 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

16. Nebraska Cooperative Development Center Jim Crandall 11854 730 Rd. Holdrege, NE 68949 308-995-3889 jcrandall3@unl.edu UNL Extension Entrepreneurship Action Team