Cooperative businesses are built on shared ownership, democratic values, and a strong connection to their communities. These qualities make co-ops stand out—but they can also create challenges when it comes to navigating government grants and tax incentive schemes.

Fortunately, more local and regional incentive programmes are now being adapted to support co-operatives as well as traditional companies.

If you run a co-op or are considering starting one, understanding how to access this financial support could make a big difference to your growth and impact.

This guide explores how cooperative businesses can tap into funding opportunities and align with the right support to grow and thrive.

Why co-ops qualify for regional incentives

Many co-ops operate in sectors like agriculture, retail, housing, and renewable energy—areas that are often supported by government funding.

Local councils and economic agencies regularly promote grants, tax relief and development funds in these sectors. These programmes are usually marketed to conventional businesses, but they are often open to co-operatives too.

The key is to clearly show how your co-op meets the programme’s goals, such as creating jobs or contributing to local development.

If you're unsure where to begin, it may help to read about how to take your business to the next level, with practical advice on planning and growth.

Match your co-op’s goals to community priorities

Regional incentive programmes often focus on:

• Job creation

• Training and education

• Innovation

• Local investment

• Sustainability

If your co-op can demonstrate how it supports any of these areas, you may be a strong candidate for local funding or tax relief.

Some regions even offer additional benefits to organisations that employ underrepresented groups or reinvest profits into the local area—two things co-ops often do by default.

Research and development support for co-ops

Innovation-focused grants and tax relief are also available in many countries.

Canada, for example, has the SRED (Scientific Research and Experimental Development) programme, which gives tax credits to businesses—including co-ops—working on eligible R&D projects.

If your co-op is developing new methods, testing ideas, or improving a process, you may qualify.

You’ll need to keep detailed records and show that your work is systematic and experimental to meet the criteria. It’s not just tech firms that benefit—food production and environmental co-ops can also be eligible.

If you're just starting out, explore ideas on how to make extra income while working full time, which includes suggestions for new income streams such as freelance and community-based work.

Partner with local authorities and business networks

Your local council or regional development office may offer funding or support to businesses that help meet local needs.

Co-ops that create jobs, address housing shortages, or improve community wellbeing are often eligible for local partnerships.

By attending networking events, economic development meetings or connecting with local business support groups, you could discover grants or subsidies you didn’t know existed, such as:

• Property tax relief

• Subsidised staff training

• Infrastructure grants

If you're building a side income alongside your co-op or day job, you might be interested in these easiest ways to make extra cash, especially if you're funding a small business launch.

Sustainability and inclusion: a growing advantage

Many co-operatives are already operating in environmentally friendly or socially responsible ways.

That’s good news—because sustainability and inclusion are key focuses for many government incentive schemes.

Grants and tax breaks are increasingly available for businesses that:

• Use renewable energy

• Improve building accessibility

• Employ a diverse and inclusive workforce

• Support low-income communities

If your co-op is already doing these things, you may qualify for additional financial support without changing your core values.

If sustainability is a focus, also check out how to be more eco-friendly on a budget, which offers affordable ways to align your business with greener values.

Use professional support to apply successfully

Accessing funding can take time—and sometimes the paperwork can feel overwhelming. That’s why working with professionals who understand co-operatives and regional schemes can be worthwhile.

Look for:

• Accountants or advisers with experience in co-op tax affairs

• Local enterprise partnerships or business support hubs

• Workshops and online resources from regional development agencies

It’s also a good idea to regularly check local authority websites or sign up for funding updates so you don’t miss new opportunities.

Final thoughts

While cooperative businesses may face different challenges from traditional companies, they also have unique strengths that align with many local incentive schemes.

By clearly linking your co-op’s goals with regional development priorities, and by seeking out the right support, you can unlock valuable grants, tax relief and funding opportunities.

Whether you're improving your community, creating jobs, or protecting the environment, your cooperative business could be more eligible than you realise.

It’s all about knowing where to look—and how to align your mission with what your region values.

Before You Go...

If you're thinking about new income streams, you may also find these articles useful:

• Easiest Ways to Make Extra Cash That You May Not Know About – Discover overlooked side hustle ideas that can support your business goals.

• How to Make Extra Income While Working Full Time – Perfect if you’re juggling a job and a co-op start-up.

• How to Take Your Business to the Next Level – Practical tips to grow your business confidently and sustainably.