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Business Services Co-operatives
A business services co-operative is a group of small business owners who
have come together to increase the
competiveness of their enterprises.
There has been a growing trend in recent decades for Australian
businesses to work together for mutual benefit.
Small businesses often lack the bargining power and resources
of
larger businesses, but they can bridge the gap by jointly undertaking ventures
with
like-minded businesses.
While interfirm collaboration can take many forms (franchises, joint
ventures, business incubators), a number of Australian businesses have chosen
the co-operative business structure to gain the benefits of a larger group.
The role of these co-operatives is to
provide services to meet the needs of member businesses.
Like an agricultural co-operative, a
business services co-operative is regarded as
an
extension of the members' business and operates to provide benefits to
businesses as
users
of the co-operative's services, not as
investors.
Benefits of collaboration
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Increased purchasing power
through joint purchasing operations by which members obtain favourable trading
terms and pricing, which increases their competiveness, particularily against
larger businesses and imports.
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Increased market penetration
and product or service recognition through co-operative marketing arrangements,
which increases their market share, particularily against larger competitors,
and improves export marketing capacity.
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Improved performance and efficiency
through joint investment in equipment, services and technology, which would
otherwise be beyond the resources of any one firm.
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Access to research and development
through joint research projects with major research institutions, which can
open up new product markets.
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Increased negotiating power
with public and education sectors through industry associations, which can
ensure the needs of particular small business sectors are considered in the
design of public policy and training curriculum.
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Manufacturing
Professional & Technical Services
Real Estate Services
Retail Trade
Transport and Postal Services
Wholesale Trade
Other Services
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