Pellervo Coop Center conducted in the spring of 2024 a review of student and school cooperatives in Finland, examining the operations, management, governance, development, and associated challenges of these cooperatives. Student and school cooperatives are an important and unique form of entrepreneurship education that deserves more attention and up-to-date information.
Student and school cooperatives offer students diverse opportunities to learn entrepreneurship, develop professional skills and workplace competencies, and earn money through their own work. In many cooperatives, students can also earn academic credits through cooperative work, making the activity even more appealing.
The roots of student cooperatives date back to 1993, when the entrepreneurial training program Tiimiakatemia was established at JAMK University of Applied Sciences in Jyväskylä, and its team enterprises began. The first cooperative-based company was founded in 1997, and since then, student and school cooperatives have grown and developed into a significant part of Finnish entrepreneurship education.
Most popular in vocational education
The data for the review consisted of a survey sent to cooperatives and teaching staff involved in student and school cooperatives, complemented by follow-up interviews. The survey received 44 responses, and thirteen interviews were conducted.
According to the study, there are at least 60 cooperatives operating in about thirty educational institutions in Finland. Student cooperatives are most prevalent in universities of applied sciences, followed by vocational education at the secondary level. Cooperatives can also be found in high schools, in vocational special education institutions, and in a few universities. The number of cooperative members varies significantly, with the smallest cooperative having five members and the largest 500 members.
An impressive 95 percent of survey respondents feel that student and school cooperatives effectively meet the needs of entrepreneurship education.
Low-threshold entrepreneurship
Compared to solo entrepreneurship, cooperatives offer an opportunity to practice and experiment with entrepreneurship together with others at a low threshold. According to the review cooperatives enabled entrepreneurship to those who might not have otherwise been interested in it. Student cooperatives benefit mainly students, but it also provides educational institutions with valuable experience in practicing collective entrepreneurship.
The review found that cooperative activities were perceived as meaningful, offering important learning experiences, and enhancing work-life skills, especially in vocational education. Students were able to work in their field as part of their studies, accumulate skills and credits, improve their expertise, and earn money simultaneously. At all educational levels, student cooperative activity and collective entrepreneurship taught practical skills, such as communication, negotiation, and the ability to receive feedback.
In search of the cooperative difference
Student’s interest in the co-op’s board activities was uneven. According to the survey, other challenges in cooperatives included financial pressures, weak commitment, team dynamics issues, and administrative challenges. Best practices highlighted included close cooperation between students and staff from the outset, the importance of clear communication, and active student participation in cooperative activities.
The reputation of a cooperative as a business model was generally seen as positive, although it also comes with challenges. In the interviews, it was particularly emphasized that the values of equality and community were considered well-suited to the educational environment. These values support the teaching of sustainable entrepreneurship. However, the study found that in some cooperatives, students were not fully aware of the distinctive features of the cooperative business model or their role as members and owners. Cooperative values were also not always recognized or deeply considered.
The study indicated a need for mentoring, networking and training. In particular, there was a call for a clearer understanding of the business model among students.
The future of student and school cooperatives looks positive. As collaboration and information sharing increase, the number and impact of cooperatives could grow even further. This offers significant opportunities for students, educational institutions, and society at large to develop a new form of collective and sustainable entrepreneurship.