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A new report out from Minnesota 2020: Cooperatively Moving Minnesota Forward

Minnesota leads the nation in cooperative business development, with at least 1,016 Minnesota-based co-ops accounting for nearly 42,000 jobs and $1.5 billion in wages. Growing out of their agriculture roots, co-ops have developed into sustainable business models for the state’s entrepreneurs, workers, and consumers.

Midwest farmers started growing the co-op model during the late 1800s to overcome market imperfections, such as lack of access to transportation routes, capital, marketing and equipment. Since then, co-ops helped build wealth, stabilize employment and sustain economic development on the country side. In farm terms, co-ops have matured into a ‘commodity’ that’s ready for harvesting and wide scale use.

An international study shows co-ops have a 64 percent five-year survival rate compared to 36 percent for other types of companies.

Today, both agricultural and non-agricultural groups starting as co-ops have distinct advantages over individuals trying to start up as a traditional business model. A co-op’s power helps achieve better economies of scale and provides wider purchasing power for members. Customers tend to be members, giving the co-op better access to buyer habits and needs.

Last 5 posts by Ed Morrison

• Signing off - February 3rd, 2012
• "The current global development model is unsustainable" - February 1st, 2012
• Market opportunities for developing Chicago's green economy - January 29th, 2012
• Plain Dealer flubs its explanation for firing Tony Grossi - January 27th, 2012
• Linking and leveraging university assets to strengthen regional economies - January 27th, 2012

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