Are you an Overseas Filipino Worker (OFW) tired of the paycheck-to-paycheck cycle? Do you dream of a future where you’re financially secure, not just while working abroad, but also when you come home for good? Starting a cooperative, or “coop,” with your fellow OFWs might just be the answer you’re looking for. It’s a way to pool your resources, support each other, and build a sustainable future together.
What Exactly is a Cooperative (Coop), Anyway?
Okay, let’s break it down. A cooperative is like a group of people who get together because they share a common need or goal. Think of it as a team effort. Instead of one person calling all the shots, everyone has a say in how things are run. It’s all about working together, not competing against each other. The Cooperative Development Authority (CDA) defines a cooperative as an autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve their social, economic, and cultural needs and aspirations by making equitable contributions to the capital required, patronizing their products and services and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principles.
The key thing about a coop is that it’s owned and controlled by its members. Everyone gets a vote, regardless of how much money they put in. This is different from a regular business where the person with the most shares has the most power. In a coop, it’s “one member, one vote.” Plus, any profits earned by the coop are shared among the members, based on how much they use the coop’s services – this is often called patronage refund.
Why Should OFWs Consider Starting a Coop?
There are tons of reasons why a coop can be a game-changer for OFWs. Let’s dive into a few:
Financial Security: Imagine pooling your savings with other OFWs to start a business back home. That’s what a coop can do. Instead of just sending money back for daily expenses, you’re investing in a future for yourselves and your families. You can invest in real estate, agriculture, or even start your own small businesses using the collective resources of the coop. Consider, too, that many OFWs struggle to access loans and financial services. A coop can be its own lending arm, offering members loans at favorable rates and terms.
Support System: Being an OFW can be lonely. You’re far from your family and friends, and you’re often dealing with tough working conditions and cultural adjustments. A coop can create a sense of community. It’s a group of people who understand what you’re going through and who are there to support you, not just financially, but also emotionally.
Skills Development: Running a coop requires a variety of skills, from managing finances to marketing products. By participating in the coop, you can learn new things and develop your skills, which can be valuable both while you’re working abroad and when you return home. Training can be provided by the CDA and other organizations to equip members with the skills needed to run a successful coop.
Investment Opportunities: Coops can provide investment opportunities that may not be available or accessible to individual OFWs. By pooling resources, coops can invest in larger projects, such as real estate development, agricultural ventures, or small-scale manufacturing, offering members a chance to earn dividends or profits from these investments.
Empowerment: A coop empowers OFWs by giving them control over their financial future. Instead of relying solely on remittances and hoping for the best, you and your fellow OFWs can take charge and create your own opportunities. It’s about building something together and having a say in how things are run.
Steps to Starting Your Own OFW Coop
Okay, so you’re interested. Great! Here’s the basic roadmap for starting your own coop:
- Gather Your Core Group: You can’t do this alone. You’ll need a group of trusted OFWs who share your vision and are committed to making the coop work. Aim for at least 15 individuals to meet the minimum requirement for starting a cooperative by law. These pioneers will be foundational to your co-op. Choose people you know, trust, and who have diverse skillsets. Ideally, you’d want individuals familiar with finances, management, marketing, and basic operations. They don’t necessarily need to be experts, but bringing different backgrounds will result in a more well-rounded core group.
- Choose a Coop Type: There are different types of coops, depending on what you want to achieve. Some common types include consumer coops (where members buy goods and services together), credit coops (where members can borrow money), and producer coops (where members work together to produce goods or services, such as farming). A good model for OFW groups is the Multi-Purpose Cooperative, which provides a range of services, including savings, credit, insurance, and entrepreneurial support. This allows you to adapt to the needs of your members. You might start with a credit program and then venture into buying land for members to build houses on when they return.
- Develop a Business Plan: This is crucial. A business plan is like a roadmap for your coop. It outlines your goals, how you plan to achieve them, and how you’ll manage your finances. It should include a market analysis, a description of your products or services, and financial projections. Don’t skip this step! A well-thought-out business plan can dramatically increase your chances of success.
- Register with the CDA: Once you have your business plan, you’ll need to register your coop with the Cooperative Development Authority (CDA). The CDA is the government agency responsible for regulating and promoting cooperatives in the Philippines. The CDA website (https://cda.gov.ph/) contains detailed information on the registration process, requirements, and fees. Be prepared to submit various documents, including your coop’s articles of cooperation, bylaws, and economic survey.
- Open a Bank Account: You’ll need a separate bank account for your coop, separate from your, or any of the co-founders’ personal bank accounts. This will help you manage your finances and keep track of your income and expenses on the cooperative.
- Hold Regular Meetings: Regular meetings are essential for keeping everyone informed and involved. Use these meetings to discuss important decisions, review your progress, and get feedback from members. They can be held online via video conference.
- Training and Education: Invest in training and education for your members. This will help them develop the skills they need to run the coop effectively and ensure its long-term sustainability. The CDA, TESDA, and various NGOs offer training programs specifically designed for cooperative members. You can reach out to them to see about any available funding.
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Real-World Inspiration: OFW Coop Success Stories
Need some inspiration? Here are a few examples of successful OFW coops:
- Alalay sa Kaunlaran (ASKI) Global Ltd.: While not exclusively for OFWs, ASKI is a microfinance institution that provides loans and other financial services to small businesses and entrepreneurs, many of whom are returning OFWs. Their success demonstrates the potential for coops to empower individuals and communities financially. ASKI now has global presence, serving Filipinos overseas.
- The Bataan OFW Cooperative: Although it may have faced roadblocks in the past, such as suspension of operations, the goals and vision of the Bataan OFW Cooperative are inspirational. By and large, their intent and purposes should provide a template for coops elsewhere—to provide loans, facilitate training, render assistance, and foster unity and financial security.
These are just a couple of examples, and there are many more success stories out there. The key is to learn from their experiences and adapt their strategies to your own situation.
Common Mistakes to Avoid
Starting a coop is not easy, and there are some common mistakes that you’ll want to avoid:
Lack of Planning: A poorly planned coop is doomed to fail. Take the time to develop a solid business plan and carefully consider all the potential risks and challenges. Don’t assume that just because you know the people you’re partnering with, that you can go without careful evaluation. Conduct preliminary risk management and SWOT analysis before doing anything.
Poor Communication: Open and transparent communication is essential. Keep your members informed about what’s going on and solicit their feedback. The success of your coop rests in part on how effectively communication is managed.
Lack of Trust: Trust is the foundation of any successful coop. Choose your members carefully and make sure everyone is on the same page.
Financial Mismanagement: Manage your finances carefully and avoid taking on too much debt. Keep accurate records and be transparent about your income and expenses.
Not following the rules: Make sure you follow all the rules and regulations set by the CDA. Regularly review your compliance with cooperative laws and bylaws.
Leveraging Technology for Your OFW Coop
In today’s digital age, technology can play a crucial role in the success of your OFW coop. Here are some ways to leverage technology:
Online Communication Platforms: Use messaging apps like WhatsApp, Viber, or Telegram to communicate with your members, share updates, and coordinate activities.
Project Management Tools: Utilize tools like Trello or Asana to manage tasks, track progress, and assign responsibilities.
Accounting Software: Invest in accounting software like Xero or QuickBooks to manage your finances, track income and expenses, and generate reports.
Online Banking and Payment Platforms: Use online banking and payment platforms like PayPal or PayMaya to facilitate transactions and manage payments.
FAQ Section
Let’s tackle some common questions:
What if I don’t have a lot of money to invest?
That’s okay! You can start small and gradually increase your investment over time. Remember, the strength of a coop lies in the collective effort of its members. The CDA offers various programs for coops, where members with low financial capabilities can start. The important thing is to contribute what you can and be committed to the success of the coop.
What if I don’t have any business experience?
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That’s also okay! Many coops provide training and education to their members. Plus, you can learn from your fellow members who have more experience. The key is to be willing to learn and work hard. You can also find available courses online, from websites like Coursera or edX, about general business skills. Remember, even the simplest task can translate into meaningful business experience.
How do we make sure everyone is pulling their weight and being honest?
This is a very important question. It comes down to having clear rules and regulations, a strong leadership team, and a culture of transparency and accountability. Regular audits and financial reports, with a board of directors keeping everyone in check, are critical. Consider having a committee dedicated to resolving disputes and investigating any complaints. Most importantly, make sure you create an atmosphere of trust and respect. That’s the best way to prevent problems from happening in the first place.
Can we really start a coop if we are all located in different countries?
Yes, you can! Technology makes it easier than ever to collaborate with people who are located all over the world. Use online communication tools like video conferencing, instant messaging, and project management software to stay connected and coordinate your activities. Make sure your bylaws include provisions for remote participation and decision-making. Consider establishing a local chapter where there are high concentrations of team members.
What are the on-going costs of maintaining a cooperative?
The expenses will vary depending on the type and scale of the coop. Some common costs include registration fees, legal and accounting fees, training expenses, rent (if you have an office or store), marketing costs, salaries (if you have employees), and audit fees. It’s important to carefully budget for these expenses and make sure you have enough income to cover them. Always set aside contingency money so that any unexpected expenses that can arise are accounted for.
References
- Cooperative Development Authority (CDA). Retrieved (N/A). https://cda.gov.ph/
- Asian Confederation of Credit Unions (ACCU). Retrieved (N/A). https://www.accu.coop/
Ready to Take Control of Your Financial Future?
Being an OFW is hard work, and you deserve to reap the rewards of your labor. Starting a coop is a powerful way to take control of your financial future, build a support system, and create a better life for yourselves and your families back home. It won’t be easy, but with hard work, dedication, and a collaborative spirit, you can make it happen. Start talking to your fellow OFWs today. Dream, plan, and build together, until you see what great things collective effort can do. Now is the time to take that first step on the road to financial security and a brighter future. It’s yours for the taking!
