Social Capital and Financing Co-op Start-Ups

1. Social Capital and Financing Co-op Start-Ups A submission to the BC Institute for Cooperative Studies “Effective Practices” Project CoopZone Forum May 16th – 17th, 2007 Submitted by Marty Frost CoopZone Forum May 16th and 17th, 2007

2. Social Capital and Financing Co-op Start-Ups Where is the connection? CoopZone Forum May 16th and 17th, 2007

3. Social Capital and Financing Co-op Start-Ups Equity Capital Financial Capital Borrowed Capital Community Capital Human Capital Social Capital CoopZone Forum May 16th and 17th, 2007

4. Social Capital and Financing Co-op Start-Ups Social Enterprise Social Economy Social Capital CoopZone Forum May 16th and 17th, 2007

5. Social Capital and Financing Co-op Start-Ups Social Capital: the intrinsic value in (the advantage created by…) the connections that are formed between people in the community. CoopZone Forum May 16th and 17th, 2007

6. Social Capital and Financing Co-op Start-Ups “the advantage created by a person's location in a structure of relationships. It explains how some people gain more success in a particular setting through their superior connections to other people”. - Robert D Putnam CoopZone Forum May 16th and 17th, 2007

7. Social Capital and Financing Co-op Start-Ups Social capital resides in many resources, institutions, and even practices of communities, but a dominant theme is that social capital is strengthened when people create and interract through their networks. These networks may have their bases in service clubs, social organizations, or economic activity, as in the case of members of a co-op. CoopZone Forum May 16th and 17th, 2007

8. Social Capital and Financing Co-op Start-Ups A high incidence of social capital in a community is often accompanied by • Lower crime rates • Higher productivity • Stable workforces • Higher inclination to innovation • Longer lifespans • Less dependence on social services CoopZone Forum May 16th and 17th, 2007

9. Social Capital and Financing Co-op Start-Ups social capital exists in co-ops, simply because of the connections that are formed among co-op members as they work, shop or live at their co-op. CoopZone Forum May 16th and 17th, 2007

10. Social Capital and Financing Co-op Start-Ups Bridging Social Capital Bonding Social Capital - Robert D Putnam CoopZone Forum May 16th and 17th, 2007

11. Social Capital and Financing Co-op Start-Ups Bonding Associations • Producer Co-ops • Marketing Co-ops Bridging Associations • Housing Co-ops • Consumer Co-ops CoopZone Forum May 16th and 17th, 2007

12. Social Capital and Financing Co-op Start-Ups Where is the connection? CoopZone Forum May 16th and 17th, 2007

13. Social Capital and Financing Co-op Start-Ups The generation of social capital - as a beneficial and effective outcome for strenthening communities both economically and culturally - needs be given a higher profile in social policies governing economic development. CoopZone Forum May 16th and 17th, 2007

14. Social Capital and Financing Co-op Start-Ups “If social capital analysis is to become a useful public policy tool, it is necessary to understand not only what it is and how it works, but also the link between social capital and other forms of capital, most notably human capital and economic capital.” - Ralph Matthews CoopZone Forum May 16th and 17th, 2007

15. Social Capital and Financing Co-op Start-Ups Meanwhile…. CoopZone Forum May 16th and 17th, 2007

16. Social Capital and Financing Co-op Start-Ups • Engage those with an interest in social capital with your social message • Engage others with the effectiveness of your business plan and your financial capital CoopZone Forum May 16th and 17th, 2007

17. Social Capital and Financing Co-op Start-Ups • Continue to promote the value of Social Capital for the building of stronger communities • Continue to promote cooperatives as repositories of social capital CoopZone Forum May 16th and 17th, 2007