The Human Resources Development Operational Programme 1994-99 is the primary channel through which EU Structural Funds support is directed to Ireland's vocational education and training measures. One of the actions supported in the operational programme is a local enterprise measure, implemented by FÁS. The measure, which is aimed at providing support for the development of employment through a locally based approach, includes, as one component, the activities of the Co-Operative Development Council and the co-operative development unit. The local enterprise measure was included in the human resources development operational programme in recognition of the fact that the establishment of small businesses, through local development, can play an important part in job-creation.
The co-operative development unit is responsible for facilitating the establishment of co-operatives and for the promotion and development of the worker co-operative sector. It reports to and is monitored by the Co-Operative Development Council.
To obtain financial assistance towards the establishment of a worker co-operative, the promoters of the enterprise must first supply sufficient information to the CDU to allow it to make a judgment on the potential commercial viability of the proposed project. Should the project have the potential for commercial viability in the opinion of the CDU, financial assistance towards the preparation of a feasibility study may be sought. In order to be eligible for feasibility study funding, the promoters would have to meet the following criteria: the enterprise must consist of at least three persons and where there are only three people involved, the three persons concerned must not be related (in order to preserve the democratic nature of the enterprise); the promoters must have a commercially viable business idea; the promoters must have the balance of the funding needed to complete the feasibility study; and the promoters must have the necessary skills to run the enterprise.
Once the feasibility study indicates that the project is viable, it is submitted to a grant approval committee which is a sub-committee of the Co-Operative Development Council. This committee decides, on the basis of normal commercial criteria, whether or not financial assistance should be provided, the level of such assistance and the conditions, standard and special, which will have to be met before the funding may be drawn down.
