Organization Features
- entrepreneurs (manufacturers, processors, trade intermediaries, financial credit, housing and household services, construction, transport, telecommunications, clearing, consulting, etc.), as well as ordinary consumers of goods and services (population: villages, villages, towns urban type, microdistrict, urban residential area) and horizontally, on a voluntary basis, they create service cooperatives in each locality (or on the basis of several small localities) and vertically unite into district, regional and republican, as well as, if necessary, other regional unions of service cooperatives, ensuring the unity of the organizational structure and coordination of activities
Target:
- revealing the economic potential of each locality, activating entrepreneurship by creating the necessary comfortable conditions for entrepreneurs and providing them with services, respecting the interests of entrepreneurs and consumers within reasonable limits
Advantages:
- the formed authorized funds of service cooperatives and their unions are not spent on salaries of governing, controlling bodies and on current expenses of service cooperatives and their unions, but are stored in deposit accounts in banks, constantly increasing, being a guarantee of the interests of their creditors and at the same time becoming additional credit resources for banks;
- Expenses for salaries of governing and supervisory bodies, as well as for the current needs of service cooperatives will be made from income of their activities (a certain percentage), only after they are received and according to the cost estimate approved by the founders of the cooperative;
- after careful study, if adjustments are necessary, and approval of this business plan by the board of the service cooperative, an agreement is concluded between the service cooperative and the entrepreneur for servicing this business plan with the necessary funds and services within the time period specified in the agreement. Thus, a trusting and mutually responsible relationship is established between the service cooperative and the entrepreneur on mutually dependent, mutually acceptable rules, which will lay the foundation for cooperation in the spirit of mutual assistance and solidarity;
- an opportunity is created to develop direct supply chains from the manufacturer to the end consumer of goods and services, bypassing unnecessary intermediaries with optimal financial and credit, trade intermediary, freight forwarding, consulting, marketing, legal, and clearing services;
- Producers of goods and services, as well as their consumers, ordinary members, shareholders of service cooperatives, in addition to the annual increase (accumulation) of their share fund based on bank deposit interest, annually receive dividends based on the results of the work of service cooperatives as shareholders in proportion to the size of their share contribution, and also, when purchasing goods and services, they enjoy significant discounts in retail trade networks, at points of housing and household services of the Union of Service Cooperatives of the Kyrgyz Republic (SCUKR). As a result, funds invested in the share contribution of service cooperatives will become three times more profitable than storing funds, as usual, in bank deposits;
- in order to avoid misuse of credit resources and ensure the repayment of loans, to members of the service cooperative, loans will be issued, whenever possible, in the goods and materials they need or the type of services, in accordance with approved business plans and concluded agreements between the board of the service cooperative and the entrepreneur.