The Cooperatives navigating Covid-19
Associate Professor Gabriel Burdin featured in a BBC News article on 15 April 2021 which discussed the success of cooperatives that have formed in response to the challenges posed by the pandemic.
The BBC News article reports on the rise of cooperatives around the world, as smaller firms and individuals have come together and pooled resources over the past year to navigate the challenges posed by Covid-19: preventing business collapse, redundancies and financial hardship.
Cooperatives are businesses that are owned and democratically ran by their own members - it could be be a group of smaller firms that join resources or a collective of self-employed workers.
In conventional business, layoffs are the most frequent cost-cutting strategy… Cooperatives adjust along other margins, such as pay cuts or work-sharing arrangements. Cooperatives share the consequences of a crisis among their members.
Dr Burdin also however highlighted the financial risk involved with cooperatives, particularly those owned by their own members - who risk losing more if the venture fails:
"By providing labour and capital to the same company, they are putting all their eggs in one basket.”