Cooperative social enterprises: company rules, access to finance and management practice

Objectives: In light of the faster than expected take up of the Community Interest Company (CIC) in the UK, this paper revisits findings from a study undertaken in 2000 on the impact of asset-locks on the longevity, growth and management styles in co-operative social enterprises. Prior Work: The co-operative and employee-ownership movements played a leading role in the establishment of Social Enterprise London and the Social Enterprise Coalition. The heritage of the UK co-operative movement, however, differs from its continental counterpart in placing a much stronger emphasis on common ownership that inhibits the transfer of capital and assets to private interests. Approach: This paper is both conceptual and empirical. It examines different worker co-operative traditions and develops a meta-theory that explains underlying assumptions in different forms of co-operative social enterprise. Using empirical data from 5 common ownership co-operatives and 5 equity-based co-operatives, this exploratory study found differences in management style, access to finance and growth prospects both within and between the two groups. Implications: Devolution of management responsibilities was more prevalent in co-operatives permitting both individual and collective ownership, as opposed to common ownership. Access to external finance was less problematic for organisations where individuals had made investments. Despite this, it was not established that organisations with external equity or loan finance grew quicker or faired better over the longer term. Value: The value of the paper lies both in the development of a meta-theoretical framework for differentiating forms of worker co-operative, as well as empirical evidence on the impact of asset-locks in the management and development of social enterprises. The study suggests that the CLS version of the CIC, or abandonment of the CIC in favour of an appropriately structured CLS or IPS model, may be appropriate for social enterprises wishing to grow, but makes little difference in small service oriented social enterprises.</p

Contract Farming for Better Farmer-Enterprise Partnerships: ADB\u27s Experience in the People\u27s Republic of China

[Excerpt] Agriculture should provide safe and nutritious food to people. In the People’s Republic of China (PRC ) and many other developing members of the Asian Development Bank (ADB), agriculture is also the main source of income for rural residents. Yet as compared with the total labor force absorption, the contribution of agriculture to gross domestic product is very small, suggesting lower productivity, often resulting in poverty. Recognizing the invaluable contribution of agriculture to the PRC ’s development, the government has been prioritizing agricultural modernization in its policy agenda with an aim to further improve the agricultural sector’s productivity and efficiency. ADB’s support to the sustainable development of agriculture in the PRC covers broad areas ranging from irrigation infrastructure and farmland upgrading to agribusiness development and food safety. The Dryland Sustainable Agriculture project commenced in 2009 with ADB assistance supports the development of partnerships between private agro-enterprises and farmers using contract farming arrangements to strengthen farm productivity, food production, and processing capacity in 27 counties in Gansu, Henan, and Shandong provinces. After 6 years, the project has delivered considerable amount of outputs in terms of facilities established and farmers engaged, showing promise in achieving its outcome. Concurring with the request from the Ministry of Agriculture, the project executing agency, ADB provided a grant to study the experiences arising from the project with respect to developing sustainable farmer–enterprise partnerships particularly contract farming models. Equally important, the study examines the issues involved in current contract farming practices and recommends policies that may help resolve them

Competitive response, innovation and creating an innovative milieu: the case of manufacturing industry in Bulawayo, Zimbabwe

competition;competitiveness;Zimbabwe;industrial development;industry;industrial innovations

Provider diversity in the English NHS: a study of recent developments in four local health economies

Objectives: The overall objective of the research was to assess the impact of provider diversity on quality and innovation in the English NHS. The aims were to map the extent of diverse provider activity, identify the differences in performance between Third Sector Organisations (TSOs), for-profit private enterprises, and incumbent organisations within the NHS, and the factors that affect the entry and growth of new private and TSOs. Methods: Case studies of four Local Health Economies (LHEs). Data included: semi-structured interviews with 48 managerial and clinical staff from NHS organizations and providers from the private and Third Sector; some documentary evidence; a focus group with service users; and routine data from the Care Quality Commission and Companies House. Data collection was mainly between November 2008 and November 2009. Results: Involvement of diverse providers in the NHS is limited. Commissioners’ local strategies influence degrees of diversity. Barriers to the entry for TSOs include lack of economies of scale in the bidding process. Private providers have greater concern to improve patient pathways and patient experience, whereas TSOs deliver quality improvements by using a more holistic approach and a greater degree of community involvement. Entry of new providers drives NHS Trusts to respond by making improvements. Information sharing diminishes as competition intensifies. Conclusions: There is scope to increase the participation of diverse providers in the NHS, but care must be taken not to damage public accountability, overall productivity, equity and NHS providers (especially acute hospitals, which are likely to remain in the NHS) in the process

Business Model of Jamu as Indonesian Traditional Herbal Medicine in New Economy

. Many firms in New Economy tend to depend more on intangible resources (i.e. knowledge and information) than tangible resources as in Old Economy. This shifting has made many firms favour the information technology for their daily business conducts today. The fast spreading of information leads to the fiercer competition than before. The great recognition of intangible assets somewhat calls for the notion of a new business model. Some enterprises and researchers expect this effort may generate more value for today's competition through combining all assets in proper judgments. Jamu, Indonesian traditional herbal medicine, also cannot avoid the impact of New Economy competition. Jamu enterprises need to preserve the traditional value in the midst of the modern lifestyle. Then, the urgency to maintain Jamu competitive advantage is felt necessary. To provide the new business model of Jamu that is deemed as appropriate in New Economy's competition is the aim of this study. Through analysing various literature, the authors heavily consider Product Service System (PSS), specifically the product-oriented type to construct a new business model for Jamu

The Potential of an Enhanced Cooperation Measure in the EAFRD (2014-2020): the case of Ireland

This report was funded by the Department of Agriculture, Food and the Marine (DAFM) through the National Rural Network (February-May, 2012).The current Proposal for a Regulation of the European Parliament and of the Council on support for Rural Development by the European Agricultural Fund for Rural Development (EAFRD) includes Article (36) Cooperation that is potentially instrumental for realising the objectives of FOOD HARVEST 20204. The purpose of this report is to assess the scope and potential of Article 36 in the context of Irish agriculture and its findings have four key aspects. First, the main areas of confluence between Article 36 and primary policy objectives as set out in Food Harvest 2020 are identified. Second, a range of cooperation categories and types relevant to Article 36, many of which are operational in Ireland, are profiled. Third, drawing from case-studies of these co-operation types5, the operational characteristics of each type are presented, focusing on compatibility with Article 36. Possible supports that would encourage and assist the formation and operation of the cooperation types on a broad scale into the future, and also any possible constraints that would prevent success, are indicated. Fourth, a brief discussion of some key implementation considerations arising from the analysis overall is presented.Department of Agriculture, Food and the Marin

Government policy and competitive advantages of foreign-financed firms in the Guangdong province of southern China

This paper investigates the impact of various Chinese government policies on the competitive advantages of foreign-financed manufacturing firms in Guangdong province of southern China. The objectives of various government sector-specific policies are to lubricate the factor markets in labour, capital and products and to facilitate the operation of foreign-financed firms. However, the actual effects are often quite different: the ambiguity, complexity and inflexibility of policies impose higher transaction costs on foreign-financed firms. These disadvantages offset some economic benefits gained under the central government's preferential foreign direct investment policy and thus damages the competitive advantages of foreign-financed firms based in Guangdong. Worse still, the lack of co-ordination among various bureaux further hampers arbitration between government bureaux and foreign investors