Reason for Delitzsch conference promoting cooperatives over start-ups unexplained.
In the heart of Central Germany, the 27th Delitzsch Dialogue was held on May 3, 2024, at the "Weißer Ross," with the question of when the cooperative form is beneficial for new foundations taking centre stage. Organised by the Hermann-Schulze-Delitzsch-Society, the event was a clear endorsement of newly founded cooperatives.
Newly founded cooperatives in Central Germany are related to the supply of essentials that people really need, such as energy, services, mobility, care, supply, and infrastructure. These cooperatives ensure that all members have an equal say, fostering collaboration over competition and creating a business that benefits everyone involved. This democratic structure and shared decision-making can motivate start-up members who want shared control and active participation.
By pooling resources, cooperatives can lower individual financial burdens and operational risks for start-ups. This collective approach supports sustainability and resilience. Cooperatives are ideal when start-ups aim to serve a specific community or group with common interests or needs. Being part of a cooperative or cooperative community can connect start-ups with diverse skills, mentors, and networking opportunities that accelerate growth and innovation.
Cooperatives promote economic empowerment, job creation, and financial services for those underserved by traditional institutions, helping start-ups in underserved sectors or communities. They are more robust against crises and have their economic base in a manageable region. Cooperatives do not target risk capital investors but people from the neighbourhood.
The official process for founding a cooperative includes a member meeting, election of the board, notarial registration, and more. Stefan Hoffmann explained this process in his presentation. German cooperative law provides clear guidelines on how to found a cooperative, ensuring its design for sustainability and long-term commitment spanning generations.
Waltraud Schneider, a legal scholar, gave a lecture about start-ups and the question of whether the cooperative form might be suitable for them. She highlighted that cooperatives are designed for the common good, should be permanently stable, avoid risks, and be deeply rooted in their region.
Thomas Keiderling, who edited the book "More start-ups! What speaks for the re-founding of a cooperative?", published by the German Hermann Schulze-Delitzsch Society in Delitzsch, 2025, also emphasised the benefits of cooperatives for start-ups. However, he noted that start-ups are designed for risk capital, bringing a completely new idea to the market, potentially filled with great potential. Therefore, start-ups are not business foundations for which the cooperative model is truly suitable.
In summary, cooperatives offer start-ups a democratic, resource-sharing model that suits ventures motivated by community or group benefit and collaborative governance. They are most appropriate when members desire shared control, long-term collaboration, and addressing specific collective needs, rather than pursuing rapid scaling through investor capital. The exhibition at the Cooperative Museum in Delitzsch provides inspiring material for those who want to engage in citizen-led supply structures.
- Start-ups in Central Germany, keen on serving specific communities or groups with common interests or needs, can benefit from the cooperative model, as it encourages collaboration over competition and pools resources for lower financial burdens and operational risks.
- Cooperatives not only provide economic empowerment, job creation, and financial services for underserved communities, but they also foster a democratic structure that can motivate start-ups seeking shared control, active participation, and sustainability.
