The number of co-ops in Belgium has halved over the past ten years, the latest study of the sector reveals, with experts pointing the finger at changes to regulations.
However, the sector still makes an important contribution to the economy, says the Belgian Cooperative Monitor, drawn up by the Centre of Expertise for Cooperative Entrepreneurship.
Although only 0.14% of Belgian enterprises are co-ops, they account for 1.1% of the national GDP and 1.5% of all employment in the country, the report says.
Employment in co-operative companies has also grown: from 47,552 full-time equivalents in 2016 to 51,006 in 2023, and increase of 7.3%.
But the drop in numbers is stark. In 2016, the country had 24,971 co-ops; by last year, this had fallen to 12,517.
“This drop in numbers is the result of a major reform of the Code for Companies and Associations,” says Frédéric Dufays (pictured), professor and academic coordinator at the Centre of Expertise for Cooperative Entrepreneurship (KCO) at KU Leuven.
“Since 2019, only companies that conclusively operate according to the co-operative identity have been permitted to retain the legal form of a co-operative company,” said Dufays.
“This reform has effectively eliminated a large number of ‘false’ co-operatives.”
After the change in law, the report found that 1,702 enterprises deliberately opted for the new co-operative company (CV) status.
But more than 6,000 former co-operative companies opted to change their status to the updated legal form of a private limited company.
The report adds that more than 10,800 co-operatives, mostly small or dormant businesses, have yet to adapt their outdated status to the new legislation.
In terms of a federal breakdown, Wallonia leads the way with 39% of all co-operatives, and nearly half of the co-operatives with the new CV status. It is followed by Brussels with 38%, and Flanders with 25%.
