Forming a cooperative: the alternative (and value-based) formula for those who want to start a business

Clara Barrio, Miguel Moreno, and Jordi Roig first met in 2007 in a faculty classroom: they had just enrolled in the audiovisual communication program at the Autonomous University of Barcelona. They shared classes for four years, but when they graduated and it was time to enter the working world, each tried their luck separately. Despite choosing different paths, all three faced the same reality. "The market only offered us precarious jobs," they recall today in statements to ARA. To solve this problem, they became self-employed: in 2014, they founded the cooperative audiovisual production company Looky Produccions together in Barcelona. "We did it with a clear conviction: to provide quality jobs, without hierarchies, with decent conditions, and prioritizing ourselves over profits," they continue. Today, they've been around for eleven years, have expanded their team with two more partners—Maiol Díez and Carlos Collazos—and have become one of the leading producers in the Catalan cooperative sector.

Meanwhile, in Igualada, Blanca Biosca, Iria Vives, and Ariadna Prat also chose the cooperative model to shape their project. "We had met at the Madriguera and other social movements, and we knew that the three of us had an aligned view of the world," they explain in this newspaper. In 2018, following the final year project of one of them, they founded Quatre Cantonades, an association aimed at bringing greater awareness, care, and sustainability to relational dynamics, group coexistence, and individual relationships. They combined this with other work until the project grew. In 2022, they became a cooperative. "It was a model that we weren't fully familiar with in 2018, but over time, we saw that it was very aligned with our way of understanding the world and with the essence of the project we were promoting," they reflect.

These are just two of the 1,582 cooperatives that have emerged in Catalonia in the last ten years. In fact, they currently represent 33.1% of all cooperatives established in the country, according to the most recent data from CoopCat, the non-profit business organization that brings together the federations of Catalan cooperatives. "This growth has not only been quantitative but also qualitative: many of these cooperatives have increased their size and have gone from being small businesses to medium- and large-sized enterprises, despite the adverse contexts of the economic crisis and the pandemic," CoopCat analyzes. But why are more and more entrepreneurs choosing the cooperative model to make their projects a reality?

More promotion of the model

One of the main reasons experts point to when explaining this phenomenon is the proliferation of advisory and support services in the cooperative sector. "We've promoted projects like TechBloc4, the first space that brings together innovation, technology, and social impact," explains CoopCat. "Support services for the creation of cooperatives have also been activated by the five Federations of Cooperatives of Catalonia," he continues. In addition to the work carried out in the region by cooperative associations, Catalonia has become rich in tools that foster cooperative entrepreneurship.

"Many public policies have been implemented to promote cooperativism," recalls Eloi Serrano, director of the Chair of Social Economy at Tecnocampus-UPF. Furthermore, this boom coincides with the increase in training opportunities in the field of social and solidarity economy. Currently, there are university courses linked to cooperativism at centers such as the Autonomous University of Barcelona (UAB), the University of Barcelona (UB), and Pompeu Fabra University. "Little by little, the cooperative model is entering economics studies, which have traditionally always taught the most widespread business model: the one that seeks to obtain economic profit," the expert continues.

The advantages of being a cooperative

One of the most obvious differences between the cooperative model and other legal forms is its internal organization: decision-making is collective, and each member has the same vote, regardless of their capital contribution. "Since we wanted to create quality jobs, we felt this was the model that best fit the way we wanted to work: horizontal and participatory," explain Looky Produccions. According to them, putting people before profits has been key to their long-term sustainability. "Managing a company involves managing the emotions of those involved: this can be a difficult challenge, but it's also a strength that can enrich the project," they add.

At Quatre Cantonades, they highlight the support that projects that opt for this approach receive as an advantage of being a cooperative. "One of the greatest advantages is the network that is created within the cooperative movement," they state. In fact, they emphasize the role of spaces such as cooperative centers, where they can share resources, knowledge, and strategies. In their case, this support was key to taking the step from being an association to becoming a cooperative. Aside from technical support, they also emphasize that the model has allowed them to better adapt the project to their work and personal needs. "Internal democracy and self-management allow us to do our work better because we believe in what we do," they summarize.

CoopCat emphasizes that interest in the cooperative model has grown, above all, due to the combination of local roots and the capacity for self-management. At the corporate policy level, these initiatives include shared governance, the ability to make collective decisions, and the flexibility to adapt to changing contexts. However, they recognize that the model is not without challenges: it requires a solid organizational culture, time for decision-making, and often an extra effort for initial economic sustainability.