An organisation formed by group of people with a similar objective which is derived from a common ground to address their challenges.
Common basic principles for the co-operatives are:
- Voluntary and open membership
- Democratic member control
- Member economic participation
- Autonomy and independence
- Education, training and information
- Cooperation among co-operatives
- Concern for community.
When forming a co-operative, there are five things that one must make sure of:
- Meeting of all members to speak to your interest
- Appoint a steering committee that will oversee the administration work of the organisation.
- Formation meeting to deal with founding documents that defines the organisation.
- The board meeting to establish an executive of the organisation.
- Registration of the organisation with registrar of cooperatives is very key.
Levels and Kind of Co-ops
- Primary Co-operative
– Formed by a minimum of five persons
- Secondary Co-operative
– Formed by two or more primary Co-ops,
- Tertiary Co-op
– Formed by Secondary co-ops or both secondary and primary co-ops
Support to Co-ops in the Northern Cape
- Expose product ready co-ops to exhibitions for enhancing their product marketability,
- Link Coops to SEDA for ongoing capacity building,
- Assist co-ops with referrals to relevant business support orgnaizationsin relation to their needs,
- Assist Co-ops with application for Tax Clearances,
- Assist Coops with accessing the Dti Support Scheme namely the Cooperative Incentive Scheme (CIS/ R 350 000)
- It is not a Cash Financing Scheme.
- Oftenly used to purchase start up equipment or goods.
- For Agricultural Co-ops, it will not be used to purchase livestock, but rather equipment required to advance farming or feed.
- Assist Co-ops in facilitating JV's with possible investors.