Legal barriers for refugees to form cooperatives

In most countries in which PROSPECTS operates, there aren’t any specific laws that include or exclude refugees from forming or joining cooperatives. In the absence of an affirmative law or policy, there is a risk that cooperatives may not meaningfully engage refugee members, or that refugee-led cooperatives may not be recognized formally. In other instances, policies and procedures to register cooperatives were underdeveloped, making it difficult for cooperatives or social enterprises to acquire regulatory support.

Capacity for growth and formalization

Weak institutional capacity of apex cooperative organizations and other supporting entities can hinder effective functioning and growth. Where such organizations lack strong leaders, there may be a disconnect between cooperative needs and the services provided. Transitioning from informal community groups to formally registered cooperatives requires strong administrative and advisory support.

Difficulty of building trust

Promoting trust and cooperation between refugees and host communities can be difficult, particularly in contexts of economic hardship and social tensions. In times of heightened economic and social crises, fostering the development of cooperative structures can be difficult.

Financial sustainability

Securing long-term financial sustainability for cooperatives remains a challenge, requiring access to finance, effective management and viable business models.