Cooperatives Europe’s Response to the EU Startup and ScaleUp Strategy

Overview of Cooperatives Europe’s Position

Cooperatives Europe, the pan‑European body representing 86 member organisations across 34 countries, presents its response to the EU Startup and Scale‑Up Strategy. The organisation advocates for cooperative enterprises, highlighting their role in fostering innovation, social cohesion and sustainable development throughout Europe.

Cooperative Innovation Success Stories

Evidence shows that cooperative start‑ups enjoy higher survival rates than traditional firms; for example, Belgian cooperatives retain 74 % of start‑ups after five years versus 68.7 % for other enterprises. In the energy sector, public funding of €1 can attract up to €60 of private investment, demonstrating the multiplier effect of cooperative models in renewable projects.

Access to Finance Challenges

Despite strong performance, cooperatives face financing hurdles. Private investors often view the democratic ownership structure as a barrier to equity dilution, limiting venture‑capital inflows. Public procurement rules also disadvantage cooperatives, as higher social standards increase upfront costs and bureaucratic requirements deter participation.

Tailored Financing Tools for Cooperatives

The response recommends financing mechanisms compatible with cooperative governance, such as redeemable preference shares and revenue‑based financing. Successful examples include Loomio’s seed round using redeemable preference shares and the CoopVenture fund in France, which provides €150 k–€300 k equity to digital start‑ups. Mutualistic funds in Italy, supported by mandatory 3 % profit contributions from cooperatives, manage assets of roughly €892 million, illustrating a robust cooperative‑specific funding ecosystem.

Legal and Regulatory Barriers

Current EU legislation often overlooks cooperative specificities, creating compliance burdens. For instance, Spain’s Startup Law does not recognise cooperative registers, limiting accreditation opportunities. The proposed “28th regime” for innovative companies, modelled on the Statute for a European Cooperative Society (SCE), has been criticised for complexity and lack of harmonisation, potentially restricting cross‑border cooperative activity.

Skills Development for Sustainable Housing

The document stresses the need for education that integrates cooperative principles with STEM subjects, preparing entrepreneurs to address sustainable housing challenges. Recommendations include increased EU funding for upskilling, incorporation of cooperative entrepreneurship modules in university curricula, and the creation of research centres focused on social‑economy start‑ups.

Collaborative Approaches and Clusterisation

A multi‑partner approach is advocated, linking public authorities, development agencies, cooperatives, and research institutions. Cluster models such as the Clusters of Social and Ecological Innovation (CSEI) are highlighted as mechanisms to accelerate sustainable housing innovations across Europe.

Key Data Points for Sustainable Housing Stakeholders

• Cooperative start‑up survival in Belgium: 74 % after five years.
• Public‑funded energy community leverage: up to €60 private investment per €1 public funding.
• Italian mutualistic funds manage assets of ≈ €892 million, supporting ~39 000 cooperatives.
• CoopVenture provides €150 k–€300 k equity per digital cooperative start‑up in France. These facts illustrate the potential of cooperative enterprises to contribute to sustainable, inclusive housing solutions throughout Europe, provided that financing, legal frameworks and skill development are aligned with cooperative principles.