Cooperatives in Germany>>Sectors>>Small-scale industry commodity and service cooperatives

Small-scale industry commodity and service cooperatives

In the Federal Republic of Germany there are currently 1,622 small-scale industry commodity and service cooperatives which are organised according to the principles of their founder Hermann Schulze-Delitzsch.

Stimulating competition

It is the purpose of these cooperatives to provide economic support for their members, traders, craftsmen and self-employed persons, i.e. to increase their competitiveness. The small-scale industry cooperatives, which cover large sections of the crafts and trade sectors and the freelance professions, are active in over 45 lines of business. These also include unions of employees known as workers’ cooperatives.

The role of the small-scale industry cooperatives requires them to work on a local, regional, national and international scale. Regionally active cooperatives work together in central cooperatives, and nationally active cooperatives are often integrated into European cooperations.

The basis of the cooperative idea in the 19th century was cooperation as an expression of the determination of small and medium-sized enterprises to compete with the large companies who, at that time, were gaining in strength. This basic idea is still relevant today: trading together should balance out the disadvantages faced by smaller companies.

Since at present nearly all markets are affected by the process of concentration, the economic activity of cooperatives is of paramount importance; not only for their members but also in order to safeguard medium-sized enterprises and thus ensure the continued existence of competition in Germany. The cooperatives’ activity is therefore geared towards improving the efficiency and competitiveness of small and medium-sized member enterprises. For this purpose they are using an extremely wide variety of strategies and concepts for cooperation.

Fields of activity of small-scale industry cooperatives

Small-scale industry cooperatives are primarily active in the following areas:

- Food industry
- Consumer goods
- Small-scale food production
- Non-food trades.

There are seven central cooperatives in existence, of which two are active in the retail sector and five in trades and crafts.

Today, the small-scale industry cooperatives are highly complex, innovative link-up groups often carrying out international activities. Alongside a range of goods which meets the demands of the market, they offer the whole range of services in business administration and corporate policy. These include opening up new markets worldwide, implementing new information and communication systems, diverse marketing activities and efficient logistics. Consulting and human resource development programmes round off the array of services on offer.

As an association of companies, the Zentralverband Gewerblicher Verbundgruppen e.V. (ZGV – German Federation of Buying and Marketing Groups – reg. assoc.) has the role of supporting its affiliated collaborations and of helping to create the best possible trading conditions for the link-up groups. The main aim of the federation’s policy is to balance out disadvantages faced by small and medium-sized enterprises in competition with larger companies.

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