Economy Minister Dr Caoimhe Archibald has pledged to unlock the “untapped potential” of Northern Ireland’s co-operative sector after new research estimated it generates more than £1.5 billion in income and supports approximately 800,000 memberships across the region. The findings, published in a report titled The Democratic Alternative: Unlocking the Potential of Northern Ireland’s Co-operative Sector, come as the Department for the Economy commits to developing a new 10-year social economy strategy with co-operative development at its core.
The research, authored by Seán Byers of Trademark Belfast and commissioned by the Department, is described by officials as the most comprehensive assessment to date of the sector. It identifies significant barriers to growth but also points to considerable opportunities for expansion through targeted policy support, improved finance access, and greater public awareness of the co-operative business model.
What the research reveals
The report estimates that co-operatives in Northern Ireland generate more than £1.5 billion in income—a figure that encompasses the sector’s total revenue streams rather than value-added economic contribution. The 800,000 memberships figure reflects individual members across co-operative organisations, including large bodies such as credit unions and agricultural co-operatives, rather than 800,000 separate businesses.
These figures place co-operatives as a notable but comparatively small segment of Northern Ireland’s economy. For context, total business sales in Northern Ireland reached £109.3 billion in 2024, according to NISRA data. The co-operative sector’s income represents roughly 1.4% of this total—leaving substantial room for growth rather than indicating established dominance.
The research arrives alongside related findings about Northern Ireland’s broader social economy. A separate 2025 Social Enterprise Sector Report found that social enterprises contribute an estimated £933 million in turnover and support over 17,000 jobs, with 44% located in the most deprived communities. While related, the two differ: co-operatives are member-owned democratic businesses, while social enterprises prioritise social purpose and may take various legal forms.
Government response: promises and programmes
Minister Archibald announced several concrete steps in response to the report:
- Commencing preparatory work on a new 10-year social economy strategy, with co-operative development as a key strand
- Examining the legislative and regulatory framework governing co-operatives
- Strengthening specialist support infrastructure
- Improving access to tailored finance
- Increasing awareness and understanding of the co-operative model
The Minister said:
“This research provides clear evidence that co-operatives already make a significant contribution to our economy and communities. Importantly, it also highlights that there is considerable untapped potential to grow the sector further; increasing its contribution to economic development, community wealth building and good jobs.”
She added:
“Co-operatives are businesses rooted in our communities, and I’m delighted to be setting out today how my Department will now go forward in supporting the sector to address the barriers identified in this research and creating the conditions for future growth.”
Some support is already in motion. In April 2026, the Department awarded a two-year grant to Co-operative Alternatives to deliver the Regional Co-operative Support Programme, which provides mentoring, peer learning and seed funding for emerging co-operatives. The programme’s first cohort has already been selected.
Independent perspective: potential and caution
Seán Byers, the report’s author, welcomed the government’s engagement while emphasising that current contributions represent “only a fraction” of full potential:
“I am grateful to the Department for commissioning this report, which provides an important baseline for growing the co-operative sector in the years ahead.
“The research confirms that co-operatives already make a significant contribution to our economy, yet this represents only a fraction of their full potential.
“With the right policy framework, infrastructure and targeted support, there is a real opportunity to develop a more diverse co-operative sector that builds community wealth and gives people a greater stake in their economic future.”
Academic research on Northern Ireland’s co-operative sector has previously highlighted both promise and obstacles. A 2022 study from Liverpool University researchers noted that “cooperatives operate under distinct values and legislative frameworks” requiring “their own agency” for effective development. The same research pointed to worker co-operatives in Belfast as demonstrating “that more ethical, alternative and autonomous ways of working are possible”—but cautioned that “worker cooperatives do not offer a panacea.”
Critical questions and gaps
The government’s announcements leave several important questions unanswered:
- Funding specifics: No financial commitment has been attached to the 10-year strategy or the various support measures. The £55,000 allocated for co-operative research and awareness in September 2025, and the ongoing Regional Co-operative Support Programme, represent relatively modest investments compared to the scale of ambition.
- Legislative timeline: The commitment to “examine” the legislative framework stops short of promising reform. Northern Ireland’s co-operative legislation has been criticised as outdated compared to other UK regions.
- Historical context: Previous initiatives to grow the social economy have had mixed results. The 2019 “Rebalancing the NI Economy” study and subsequent action plans have raised sector profile, but structural barriers—including access to finance, procurement complexity, and limited public awareness—have persisted.
- Definitional clarity: The press release moves between “co-operatives” and “social enterprises” without clearly distinguishing them. While related, these are distinct concepts: all co-operatives are member-owned democratic businesses, while social enterprises prioritise social purpose (and may or may not be co-operatives). Policy responses need precision to be effective.
UK and international context
The UK government has set a goal of doubling the co-operative and mutual sector’s size during the current parliament, with measures announced at Mansion House in 2024 currently being progressed by HM Treasury. However, co-operatives and credit unions policy is devolved to the Northern Ireland Executive, meaning Stormont must develop its own approach.
International comparisons suggest Northern Ireland lags behind regions with stronger co-operative traditions. The International Co-operative Alliance has urged governments to “utilise and fully develop the potential and contribution of co-operatives for the attainment of social development goals, in particular the eradication of poverty, the generation of full and productive employment and the enhancement of social integration.”
Questions for stakeholders
- What measurable targets will the 10-year social economy strategy set for co-operative growth, and how will progress be independently verified?
- How will the Department ensure that “awareness raising” translates into concrete behaviour change among entrepreneurs, financiers, and procurement officials?
- Given that 44% of social enterprises already operate in deprived areas, what specific mechanisms will ensure co-operative development reaches communities currently underserved by conventional business support?
- How will proposed legislative review address the fragmentation of co-operative law across the UK, and will Northern Ireland seek alignment with Scottish or English frameworks—or develop distinct approaches?
- What role will worker ownership conversions play in the strategy, and what incentives might encourage existing businesses to transition to co-operative models?
What to watch
The Department’s commitment to a 10-year strategy represents a significant policy horizon, but delivery will depend on sustained Executive stability and budget allocations. The co-operative sector’s ability to convert research findings into viable businesses—particularly in areas like community energy, where new GB Energy funding is now available—will test whether current support mechanisms are sufficient.
Readers interested in co-operative development can access the full research report and find information about the Regional Co-operative Support Programme through Co-operative Alternatives.