Industrial cooperatives: A sustainable business model for promoting social entrepreneurship

Abstract

In an era where economic reform is a necessity, the industrial cooperatives (IC) model is both realistic and very desirable due to its peculiar focus on utility. Their member-centered mission and social commitment based on cooperative identity make them well-positioned to act as social entrepreneurs for the long-term sustainability of any economy. The purpose of this study is to specifically bring out the significance of IC for encouraging social entrepreneurship (SE) by blending the peculiar characteristics of IC with those of SE. The literature supports that social innovation and social value creation are the essential elements that ensure industrial cooperatives’ success and support them as sustainable social enterprises for the growth of an economy. The literature also revealed that because of the distinctive nature of IC, which is reflected in their golden cooperative principles and values, they equally serve as a role model for SE and contribute immensely to the sustainable development of a country like India. In keeping with this, it is suggested that policymakers may provide an institutional, legal, and administrative environment that is favorable to IC. The findings of this study contribute to existing research by combining SE and cooperative literature under the umbrella of cooperative identity.