Aboriginal Co-operatives in Canada - Centre for the Study of Co ...

~ C A S E S T U D I E SFinancial InformationDespite the relative youth of the co-operative association, there has only been one fiscal year inwhich a net loss was recorded—1997. Sales also dropped slightly in 1997, from $1,053,027 in1996 to $1,043,302. Apart from 1997, Akochikan has managed to record a profit, as well asincrease member equity, every year. Total assets have increased every year, from $286,437 in1996 to $360,137 in 1999.Return on equity, change in sales, assets, and member equityfor the Akochikan Co-operative Association, 1996–991996 1997 1998 1999Return on equity 15.89% -41.05% 0.93% 16.36%Change in sales -- -0.92% 2,12% 12,16%Change in assets -- 2.44% 3.00% 19.17%Change in member equity -- -29.10% 0.94% 127.52%As shown in the table, there was an increase, or positive change, in all of the indicators in every year except 1997,when the co-op experienced a net loss (see Appendix for Statement of Operations). For a business that has onlybeen in operation four years, Akochikan is doing quite well. As Irvin and Lorna have noted, the members and theboard of directors view the co-operative as more than just a business with the ultimate goal of making money andturning a profit. The Akochikan Co-operative Association also plays a social role in the community.Barriers to DevelopmentEstablishing the Akochikan Co-operative was not an easy task, nor is its continued operation.It is difficult to obtain adequate financing for co-op expansion, for instance, and to train co-opand community members in business and co-operative education. The co-op is also lookinginto establishing a credit system for members in order to become more competitive with theNorthern Store, which operates a credit system that encourages community members to shopthere and charge their purchases. And while the co-op does not want to force the communityto shop at the co-op by establishing a credit system, it does hope that the system will give communitymembers a choice as to where they can shop. It has, however, been difficult to find thefunds to establish a credit system for the co-op.Board members would also like to see more support for the co-op from community leaders.While the band supports the co-op officially and continues to play a crucial financial role in itsoperation, not all community leaders support it by attending meetings or even shopping there.The board feels that if community leaders supported the co-op by using the services more oftenand establishing community meetings to educate others about it, most of the people within thecommunity would also actively support it. Irvin and Lorna note that it is important for anyAboriginal community to have support from leaders if a co-op is to be established, becausecommunity leaders play a crucial role in encouraging others to support the organization.~ 353