The Bermuda Economic Development Corporation has unveiled the island’s first stand-alone Co-operative Business Policy, setting the stage for new legislation to support member-owned, for-profit enterprises that emphasise shared prosperity and democratic participation.

The policy, developed by BEDC’s Economic and Co-operative Development Unit, outlines how co-operatives can operate as legally-recognised business entities in Bermuda — distinct from companies and non-profits — while remaining bound by the 60/40 ownership rule. It excludes financial co-operatives, which continue to be governed under the Credit Union Act 2010.

The 80-page report, The New Bermuda Co-operative Policy (May 2025), traces the island’s co-operative history from post-emancipation Friendly Societies through the Bermuda Credit Union and Bermuda Industrial Union Co-op. It identifies potential growth sectors including agriculture, fisheries, energy, technology, housing and youth entrepreneurship, and recommends a statutory Registrar for Co-operatives to oversee registration and compliance.

Erica Smith, BEDC executive director, said co-operatives “create opportunities for ownership, collaboration and sustainable development — values that align perfectly with BEDC’s mission.”

William Spriggs, BEDC director of economic and co-operative development, added that the new framework “sets the stage for a modern co-operative regime that encourages innovation, ownership and shared responsibility”.

The policy forms part of the Government’s Economic Recovery Plan, which first highlighted food and fisheries co-operatives as post-pandemic resilience tools. It follows the 2025 Throne Speech pledge to complete co-operative legislation and establish a dedicated registrar.

In practical terms, BEDC’s expanded role will include assisting co-operative start-ups with business planning, cashflow projections and bylaw drafting, as well as ongoing education and sector oversight.

Once implemented, the framework is expected to give Bermuda a new “fourth sector” of the economy — alongside government, private enterprise and charities — aimed at boosting local wealth retention and community participation in business ownership.