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