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Community-Based Cooperatives: a New Business Model for the Development of Italian Inner Areas

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Community-Based Cooperatives: a New Business Model for the Development of Italian Inner Areas sustainability Article Community-Based Cooperatives: A New Business Model for the Development of Italian Inner Areas Luigi Mastronardi and Luca Romagnoli * Department of Economics, University of Molise, 86100 Campobasso, Italy; [email protected] * Correspondence: [email protected] Received: 4 February 2020; Accepted: 6 March 2020; Published: 8 March 2020 Abstract: Italian municipalities distant from main service supply hubs are defined by the Development Ministry as “inner areas”. A new business model, called community-based cooperatives, has recently developed in these areas. The name itself highlights the strong link between these firms and the local population. Their essential features are the pursuit of general interest and the creation of partnerships. This research explores the potential contribution of these enterprises to the growth of Italian inner areas. The data come from a direct survey, and the methodology includes text analysis techniques and correspondence analysis to create useful concept maps that define the paths that community-based cooperatives can take to regenerate their territories. The results highlight the critical issues of inner areas and the needs of their communities, together with the potential fields of business for the establishment of a community-based cooperative. In conclusion, these new firms may lead to real and enduring benefits to local communities. They could also contribute to demographic decline inversion by introducing new practices that reduce inequalities, enhance social, natural, and artificial capital, and boost the sustainable development process. Keywords: cooperation; community; place-based approach; content and sentiment analysis; correspondence analysis; inner areas; Italy 1. Introduction Inner areas (IAs) are municipalities that are distant from cities but capable of offering some essential services, which condition the standard of living for residents and their degree of social inclusion [1]. In recent years, IAs have been the subject of a public intervention, called the Strategia Nazionale per le Aree Interne (Inner Areas National Strategy; SNAI) [2]. The SNAI is founded on a place-based approach [3], and its main purpose is to invert the negative demographic trend afflicting IAs. The SNAI approach to IA classification relies on two phases: (1) detection of the so-called poles and inter-municipal poles, where essential services (health, education, mobility) are concentrated; and (2) classification of the remaining municipalities into four groups: urban belt areas, intermediate areas, peripheral areas, and ultra-peripheral areas. The last three groups form inner areas (Figure1): they are identified on the basis of their respective distance from poles, calculated as the time (in minutes) required to reach the nearest pole. In particular, intermediate areas are those that are between 20 and 40 min away from their nearest pole; peripheral areas are between 40 and 75 min away; and ultra-peripheral areas are more than 75 min away. Sustainability 2020, 12, 2082; doi:10.3390/su12052082 www.mdpi.com/journal/sustainability Sustainability 2020, 12, 2082 2 of 13 Sustainability 2020, 12, x FOR PEER REVIEW 2 of 13 Figure 1. Strategia Nazionale per le Aree Interne ( (SNAI)SNAI) 2014 classification classification of Italian municipalities municipalities.. Source: own elaboration elaboration.. WhenWhen the SNAI was defined, defined, the groups constituting IAs IAs consisted consisted of of 4,185 4185 municipalitiesmunicipalities (almost 52% of total Italian municipalities), and more than 13 million people (approximately 22% of the national population) lived there.there. The rationale rationale underpinning underpinning the the classification classification methodology methodology is overcoming is overcoming the traditional the traditional city– city–countrysidecountryside dualism. dualism. The centre The may centre be may a little be town a little or towneven several or even neighbouring several neighbouring towns, provided towns, providedthey are capable they are of capableoffering ofessential offering public essential services. public On services.the other hand, On the a city other can hand, be classified a city can as an be classifiedinner area as if anit is inner not able area to if offer it is not adequate able to citizenship offer adequate services. citizenship services. In Italian IAs, aa newnew entrepreneurialentrepreneurial modelmodel hashas recentlyrecently developed,developed, calledcalled community-basedcommunity-based cooperatives (CBCs) [4,5]. [4,5]. The The name stresses the strong link between these organisationsorganisations and local populations, which constitute the fundamental element of theirtheir mission and for their managementmanagement models [[6,7].6,7]. They are established in marginal settings, devoid of public or private investments that can raiseraise theirtheir socio-economicsocio-economic potential potential [8 [8].]. In In rural rural and and peripheral peripheral areas, areas, CBCs CBCs satisfy satisfy the the needs needs of the of communitythe community [9] with [9] with the purposethe purpose of preserving of preserving the socialthe social fabric, fabric, trying trying to counteract to counteract depopulation depopulation [10]. CBCs[10]. CBCs are resilience are resilience factors factor withs with a key a role key in role the in community the community [11,12 [11,12].]. The essential features of CBCs are the pursuit of general interest, the local community community,, and the creation of partnerships. The core business of CBCs is to maximisemaximise community wellbeing [[13],13], and this involves a close relationship between businesses and social andand environmentalenvironmental valuesvalues [[14].14]. As a consequence, theythey exist exist as as associations associations that that are transformingare transforming into companies into companies to fulfil to common fulfil common interests. CBCsinterests. are aCBCs form are of hybrid a formenterprise of hybrid [enterprise15] that refer [15] to that a variety refer to of a rationales variety of [16 rationales]. In the non-profit [16]. In the sector, non- forprofit example, sector, for the example, term “hybridization” the term “hybridization refers to complex” refers to organisational complex organi formssational arising forms as voluntary,arising as charitable,voluntary, charitable and confrontational, and confront differentiatedational differentiated tasks [17]. tasks CBCs [17]. pursue CBCs many pursue purposes many relatedpurposes to servicesrelated to provided services to provided the community to the community [18] and synthesise [18] and thesynthesi linkss amonge the links entrepreneurial, among entrepreneur community,ial, andcommunity social changes, and social [19]. changes As a consequence, [19]. As a consequence, they can be consideredthey can b ase considered a structural as component a structural of businesses’component biodiversityof businesses’ [20 biodiversity]. [20]. In Europe, community enterprises enterprises such such as as CBCs CBCs are are rather widespread phenomen phenomena.a. Community-basedCommunity-based enterprises enterprises similar similar to to CBCs CBCs can can be befound found in Great in Great Britain Britain [21,22], [21, 22France], France [23], [and23], andGerm Germanyany [24]. [24]. In Italy, CBCsCBCs areare aa longstandinglongstanding traditiontradition [[25].25]. Examples of CBCs are represented by social cooperatives and and energy energy sector sector cooperatives. cooperatives. However, However, the thewide wide spread spread of CBCs of CBCs on a onnational a national basis basisonly onlystarted started in 2011, in 2011, following following the thesigning signing of ofan an agree agreementment between between Legacoop Legacoop (Union (Union of Cooperatives), Associazione Borghi Autentici (Genuine Hamlets Association) and and Legambiente Legambiente [26]. [26]. Sustainability 2020, 12, 2082 3 of 13 This agreement aimed at encouraging the spread of CBCs, particularly after the reduction of the welfare state, the so-called “deflagration of the public sector” [27]. Modern CBCs are different from earlier ones in regards to their social basis, business sectors, organisational models, and governance [28]. Their main feature is sustainability [29], which involves environmental and socioeconomic issues impacting on future generations [30,31]. In particular, environmental sustainability denotes the ability to retain the capability of reproduction of natural resources; social sustainability indicates the capacity to ensure the equal development of human capital (with respect to class and gender); and economic sustainability implies the capacity to generate income and employment [32]. These aspects are supplemented by an institutional component: the ability to ensure democracy, stability, justice, education, and transparency. As a consequence, CBCs might contribute to sustainable development in a variety of ways: (a) the strengthening of community wellbeing (social sustainability); (b) the enhancement of endogenous potential (economic sustainability); (c) the recovery of degraded or abandoned natural resources (environmental sustainability); and (d) the creation of a network among local communities, authorities, and other private stakeholders able to mediate in situations of conflict (institutional sustainability). Environment can be considered as a determinant of the success of business [33,34]. The environmental performance of CBCs could also be assessed in terms of environmental,
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