Cooperative Consortia - Global Ecovillage Network

Description of Challenge

Consortia are widespread in Italy, where they allow cooperatives to pool their resources, offer a
broader range of services, and therefore access larger contracts – while retaining their own
specialisms and human scale. They have been a key tool in building the strength of cooperation
in new areas. Among social cooperatives the leading consortium is the Gruppo CGM, which has
1,100 member cooperatives and an annual turnover of €1 billion.

“Competition has been shown to be useful up to a certain point and no further, but cooperation,
which is the thing we must strive for today, begins where competition leaves off.”
Franklin D. Roosevelt

Solution

Consortia are very flexible tools, which are more stable than networks. They can be used by
enterprises of all types, to fulfil functions such as joint purchasing and marketing. However
because they are controlled bottomup, they are particularly suitable for cooperatives. Different
national legislations vary but, to take Italy as an example, a consortium can be founded by three or
more primary cooperatives with a minimum capital of only €516. They are territorially based, and
bring together cooperatives which supply complementary services. Their main role is to act as
main contractors, bidding for and managing major contracts. However they also arrange credit, run
training schemes and represent their members politically.

References
Bellione, S. & Nappini, F. (2014) The experience of consortia supporting growing enterprises in
Italy. SEN (Social Entrepreneurship Network) case study: http://socialeconomy.pl/node/275
Menzani, T. & Zamagni, V. (2009) ‘Cooperative networks in the Italian economy’, Enterprise and
Society, 2009, no.4:
http://www2.dse.unibo.it/dsa/utenti/[email protected]/attachments/Cooperative%20networks%202009.pdf

Submitted by AEIDL