Working in the co-operative sector has been one of the most rewarding experiences of my life. It has reshaped my understanding of business and reinforced my belief in an ethical, community-driven economy. I have found my passion in wholeheartedly advocating for co-operatively run businesses as a way to humanize the economy and make the world a better place.
But the more I learn about co-operatives, the more I realize that they remain widely misunderstood. Just before Christmas, a colleague shared a satirical clip from a Canadian news show that lumped co-ops together with communism. It reminded me of a moment years ago when I told my family I was taking a job with a large Canadian co-operative. One relative asked why I was going to work for communists; I was flabbergasted.
This wild misconception is just one of many myths surrounding co-ops. Others I’ve run across during my time working in the sector are the idea that co-ops are run by hippies, aren’t “real” businesses, don’t turn a profit, or have no place in today’s competitive markets. The truth is most people don’t understand the co-operative model because it’s rarely covered in business education. You can complete an MBA without ever learning that co-ops are one of Canada’s recognized business models! And yet, the practice of working co-operatively has been around for thousands of years and formal iterations of co-op enterprises have been around for centuries. Today, over three million co-ops worldwide serve more than a billion members and employ 10% of the global workforce.
Despite their success, co-ops are often dismissed as non-viable business models. They rarely make headlines unless they fail—like Mountain Equipment Co-op or the BC Tree Fruits Cooperative. Government programs and small business centers typically lack knowledge about co-operative development, thereby discouraging entrepreneurs from exploring this model. Worse, co-ops are often excluded from grant programs and economic development initiatives, even though studies show they are nearly twice as likely to survive beyond five years compared to other businesses. They are also more stable during economic downturns and employ more workers than traditional small and medium-sized enterprises (SMEs).
Having worked for a credit union in Ontario and as someone who spends much of my time talking to people about co-operatives, some of the biggest misunderstandings around co-ops have to do with credit unions. Many people see them as small, risky, or unregulated financial institutions. Others mistakenly believe they only serve union members or function like Western Union money transfer services.
In reality, credit unions offer the same services as banks but with a customer-first approach. Account holders even have a say in electing the board of directors and shaping decisions - can you imagine that scenario at one of Canada’s “big five”? Ontario credit unions have strong regulatory frameworks to protect members' deposits and ensure financial stability. While nobody enjoys paying service fees or interest (myself included), as a member of one of Ontario’s many credit unions, at least I know the revenue generated by a Canadian credit union stays in Canada. Rather than going to foreign investors, it is reinvested into local businesses or returned to members through profit shares. I also know my money is secure - credit union deposits are fully insured, often with even higher coverage than what banks provide.
North America’s first credit union is still around today and it’s stronger than ever. Desjardins, started in 1900 by Alphonse Desjardins in Levis, Quebec, is the largest financial co-operative in North America and the fifth largest in the world, with over $414 billion in assets and 56,000 employees.
Recent global events have highlighted the need to support Canadian businesses, and co-ops offer an excellent way to do so. They come in all sizes and industries, from small worker co-ops like Toronto’s Co-operative Cleaners of Ontario - a commercial and residential cleaning service owned and operated by its workers - to large financial co-ops like Meridian Credit Union, Ontario’s largest credit union with over 360,000 members. Co-operatives exist in telecommunications, insurance, software development, childcare, grocery retail, healthcare, and much, much more.
Despite their proven success, co-ops remain overlooked and misunderstood. It’s time we challenge these misconceptions and recognize them for what they truly are: dynamic, resilient, and people-focused businesses that create a fairer, more sustainable economy.
Submitted by Michelle Christmann, Education Manager, OCA
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