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Modern Social Entrepreneurship by a Cooperative Shareholder-Investor Model

Modern Social Entrepreneurship by a Cooperative Shareholder-Investor Model

The priority of modern social entrepreneurship is to create employment based on the success of a project, with high efficiency and productivity for the general public. In fact, people, are the solution of society’s problems, which means: “Trust in cooperative thinking is undoubtedly the way forward.”

A strong and powerful economy, which is one of the main needs of powerful and lasting societies and governments, requires to sustainable employment, and sustainable employment will not be formed except on the basis of entrepreneurship, observing all the principles and rules of economics.

Undoubtedly, the economic entrepreneur works for profit and seeks to maximize profits and the social entrepreneur in the traditional approach neglects earning money, and does not move in the right direction.

But the modern social entrepreneur, in addition to seeking income and value creation, is also engages in social activities and responsibilities.

On the one, the set of conditions and requirements of our today’s society, and the other hand, the common programs and goals that exist between the two categories of “social entrepreneurship” and “cooperation”, make inevitable the necessity of strategic connection between these two basic categories. The success of social entrepreneurship is guaranteed when people are part of the solution of existing social problem. Utilizing the potential of collective thought and wisdom and even the social and economic capital of the social units has an important role in the category of social entrepreneurship.

Furthermore, the main factor of stability, dynamism and success of various activities and organizations, including activities and cooperative organizations, is the movement with a focus on “creativity and innovation.” In other words, one of the most important characteristics and requirements of Cooperatives Organization’s Success is their innovation and future orientation. Creative and Innovative Cooperative Organization is an organization that innovation, creative and forward-looking entrepreneurship is institutionalized and its activities is based on this.

In the modern social entrepreneurship, which is the cooperative-oriented social entrepreneurship, the economic entrepreneur to implement his idea, while taking risks and investing, also invites people to participate in the project with their savings and micro-capitals, which cause to social value-creation, reducing social distance, creates added value to a wide range of people, not to specific individuals, and managing the country’s liquidity.

The priority of modern social entrepreneurship is to create employment based on the success of a project with high efficiency and productivity for the general public. In fact, people, are the solution of society’s problems, which means: “Trust in cooperative thinking is undoubtedly the way forward.”

Proper using of public micro-capitals in society in the form of cooperative participation in infrastructure projects, leading it towards creating sustainable employment through modern social entrepreneurship is the best way to boost production and ensure sustainable economic development. Strengthen the participation spirit, sharing in economic and social welfare, convey a sense of trust and benefit small capital, that is useless, and utilization them to reduce, control or solve a social problem or do massive economic activity towards economic development are the greatest advantages of the cooperative economy. The high employment of some cooperatives also shows the ability of the cooperative sector in terms of entrepreneurship.

Today, new models in the field of cooperation have emerged, which seek to maximize the participation of real and legal institutions by popularizing the economy. In this way, accurate familiarity with the financing and managing and using value-added entrepreneurial methods in cooperation between the private and cooperative sectors, can be an important factor in defining these new cooperative models.

For example, a part of financial resources of a cooperative company can be provided through domestic capital and the rest through capital markets or borrowing in the form of non-member participation. So the definition of “Cooperative Shareholder-Investor” as a new model is essential, in other words: Modern Social Entrepreneurship by a Cooperative Shareholder-Investor Model.

 

In this cooperative model, different groups of stocks are created, which may have different rights for the holder, in terms of; rate of return, risk tolerance, amount of control, redeem ability and transferability and other rights. Non-member investors in this structure, together with cooperative members, on an effective participation, receive ownership rights as shareholders.

Due to the legal Articles, by replacing the new generation cooperative model (which can have a non-member shareholder) with the traditional model – in which, each member has only one voting right – can provide a value-creating activity for the non-member shareholder and achieved a more popular structure in the cooperative economy. Today, the macro goal of many cooperative economy structures is “social entrepreneurship”, which tries to benefit several generations of economic activity advantages by distributing benefits to the collective.

The distinguishing feature of social entrepreneurship is the priority of future-oriented long-term social interests over now-oriented personal interests. It is clear that in this regard, new cooperative models can guarantee profitability of social entrepreneurship through value-creation entrepreneurship.

Under the new cooperative structure to carry out large national projects, economic entrepreneurs and risk-takers can enter as cooperative members with a voting right of more than at least 65% and ordinary people as non-member shareholder. The non-member shareholder, while observing the legal frameworks in the field of cooperation, who has more freedom in terms of economic risk-taking as well as the commitment to value-creating for shares, will lead to effective achievements in the cooperative economy.

In the new cooperative model, withdrawal conditions of shareholding are also defined for non-member shareholders. Non-member shareholders are shareholders of the company in the form of a special contract and for a certain period of time, and at the end of the contract, are removed from the shareholding according to certain conditions. It can be said that; by this way, economic entrepreneurs, as shareholder member, give the value-creating obligation to non-member shareholder and activity expanding obligation to government. Non-member shareholders share in the company’s interests and profit the special conditions under the contract.

In fact, it can be expressed that the responsibility of member shareholders within the framework of cooperative laws, along value-added investment of non-member shareholders, leads to a new and dynamic structure to strengthen the cooperative economy and Cooperative Shareholder-Investor Model is a powerful credit for extending of social entrepreneurship.