There are now more than 1,000 co-op organizations in Atlantic Canada, and they're ready for whatever the economy throws their way

A precarious economy can make all kinds of businesspeople nervous. Ask Carol Hunter about her organization, though, and she sounds upbeat. "Co-ops were often formed during hard economic times, so they're as relevant today as they have ever been," says Hunter, the executive-director of the Canadian Co-operative Association (CCA).

She explains that co-op businesses are less exposed to market volatility, because they don't focus on short-term profitability or have the same pressure to maximize profit. "Co-operatives can afford to take the longer view. It may take longer to get going because of consulting with members and mobilizing capital, but co-ops do stay in business longer."

Research supports Hunter's claim. A 2008 Quebec study showed that co-operative enterprises survive twice as long as those in the private sector. Another study reveals that in Atlantic Canada the average co-op is 33 years old. Leslie Brown, the chair of the sociology/anthropology department at Mount Saint Vincent University in Halifax, and one of the authors of the regional report, says co-operatives stay in business longer because they build genuine connections with their communities. "When corporations, especially big ones, stop making profit, they tend to pull out or close," says Brown. "They assess communities in terms of the needs of the corporations, not in terms of the communities and families."

Succession planning can be a huge challenge for private businesses, which are at the whim of family members. "We're seeing a lot of family-owned firms closing where co-operatives aren't," says Brown. Other growth areas include food production and distribution, especially organic and local; health care and home care; energy co-operatives, including those that want to make environmentally friendly products; and fair trade. "Co-operatives are often perceived as residual businesses that kick in during market failure, but they can be proactive too," says Brown. "It's this idea of the alternative economy."

Co-operatives and credit unions are driven by both economic and social concerns. Based on ethical values and principles, co-operatives empower individuals. They encourage healthier and stronger communities by enabling people to pool their resources, share risks, and achieve common goals.

When you've been around for more than a century and a half, you can feel confident about weathering a recession. The co-op model follows principles developed in 1844 by a group of weavers working in cotton mills in Rochdale, England. Tired of terrible working conditions, low wages, and an inability to buy food and household goods, they formed the Rochdale Equitable Pioneers Society.

In Atlantic Canada, the co-operative movement began when the Sussex, N.B., co-op incorporated as Sussex and Studholm Agricultural Society No. 21 in 1854, and British miners started a co-op store in Stellarton, N.S., in 1861. Other early co-operatives and credit unions include the Farmers' Bank of Rustico (1863) on Prince Edward Island, the Red Bay Co-op (1893) in Red Bay, N.L., and Scotsburn Creamery (1900) in Pictou County, N.S. Today there are more than 1,000 co-ops, credit unions, and caisses populaires in Atlantic Canada.

Organizations such as CCA are busy promoting the benefits of the co-operative business model to government and the public. In the Atlantic provinces, some new forces are also putting energy into promotion and co-op development. The Prince Edward Island Co-operative Council Incorporated was founded in 2007 and the Co-operative Enterprise Council in New Brunswick in 2008. They join existing associations in Nova Scotia and Newfoundland and Labrador.

This is a big year for co-ops, as the CCA celebrates its 100th anniversary. The Nova Scotia Co-operative Council celebrates its 60th, and the Credit Union Central of Nova Scotia turns 75. The following change was made to the Nova Scotia Co-operative Associations Act: co-operative businesses in that province can now offer preferred shares to interested buyers. There was also a roundtable, with provincial co-op leaders examining the next decade for the sector, and a commitment was made to focus on youth.

"Part of our success is we're passionate about what we do, why we do it, and how we do it," says Dianne Kelderman, the CEO of the Nova Scotia Co-operative Council. "The people involved believe in the values and principles. We have strong pride of place and deliver on what we say."

Kelderman believes co-operatives thrive when people stop believing someone else will be their saviour. "They start to think about what they can do to help themselves," she says. "We feel we have a responsibility to step in and contribute to creating a solution. That is why co-operatives pop up in tough economic times."

This is happening now with health care in Nova Scotia. The province's co-operatives and credit unions, in partnership with the provincial government and several Nova Scotia doctors, have launched a new web-based medical-support clinic. Connecting People for Health Co-operative Ltd. is the first of its kind in Canada to focus on patient needs. Kelderman, who is helping spearhead the $4.1-million initiative, says people want to participate more actively in managing their own health. "They're realizing they can't expect government to have all the answers."

Carol Hunter of the CCA points out that people can reap many benefits from co-op membership. "You can be born in a health care co-op and buried by a funeral co-op. In between you can work in a workers' co-op, live in a housing co-op, buy your clothing from a retail co-op, send your children to a child care co-op, and bank at a credit union."

Still, co-ops aren't immune to challenges. If the recession runs deep, co-ops will be affected too. "But," says Hunter, "deep community roots and an eye on the long term allows co-ops and credit unions to weather recessions."