Economic Development

OST gGmbH as the Backbone
The organization itself can’t distribute profits; its revenues must be reinvested in the mission (sustainability, innovation, community). Residents as individuals or cooperatives can earn money, run businesses, and pay taxes normally.

  • Land & housing are owned or leased by OST gGmbH.
  • Residents pay rent (below-market, but enough to cover costs, maintenance, and reinvestment).
  • Rental income is OST’s primary financial stabilizer:
    • Covers infrastructure (water, power, heating, transport).
    • Covers staff salaries for communal functions (administration, maintenance, health, education).
    • Funds innovation + sustainability projects.

This creates a baseline financial independence, reducing reliance on donations, grants, or external financing.

Residents’ Dual Role
Every functioning community needs everyday services: barbershops, cafes, repair shops, bakeries, childcare, small medical practices, etc. In OST these don’t need to be nonprofit — they can be independent businesses owned by residents.

Residents contribute in two ways:
1. Rent → steady contribution to the community’s shared infrastructure.
2. Independent economic activity → therapy, IT consulting, etc.

They benefit from:

  • Lower living costs (due to efficiency, permaculture food, shared transport).
  • A ready-made local market (other residents).
  • Access to facilities and infrastructure maintained by OST.

Integration of Small-Scale Businesses
To keep the balance between community orientation and economic autonomy, OST could:

  • Offer affordable commercial spaces inside community hubs (market hall, co-working dome, mixed-use areas).
  • Prioritize mission-aligned businesses (eco-friendly, socially useful, circular economy).
  • Facilitate cooperative ownership:
    • Example: a barbershop cooperative where 2–3 stylists share space and equipment.
    • A community café where profits partly support communal events.

  • Businesses remain separate entities (Einzelunternehmen, UG, GbR, Genossenschaft).
  • They pay their own taxes and insurance.
  • They rent commercial space (if needed) from OST gGmbH at fair, mission-aligned rates.
  • In return, OST ensures a supportive environment: reliable utilities, green reputation, and a built-in customer base.
  • OST gGmbH sets rules for participation (e.g. waste recycling, fair pricing, inclusivity).
  • Sociocratic circles can provide a feedback channel between service providers and the community (adjust opening times, resolve conflicts, suggest new services).

Phases of Economic Development

Phase 1 (Startup, Years 1–2)

  • Revenue streams:
    • Housing rent (main income).
    • Small commercial rents (cafes, shops).
    • Modest grants/donations.
  • Expenditures: infrastructure, core staff, early permaculture & energy systems.

Phase 2 (Consolidation, Years 3–5)

  • Expanded income sources:
    • Housing rent (growing with population).
    • Commercial space rent.
    • Revenue-sharing with larger on-site businesses (e.g. eco-production workshops).
    • Educational/research partnerships.
  • Expenditures: expand utilities, schools, healthcare, larger public facilities.

Phase 3 (Maturity, 5+ years)

  • Housing rent keeps the base stable.
  • Businesses + external collaborations bring in variable but potentially large surpluses.
  • OST develops a financially resilient loop: stable income + innovation-driven growth.

Why Rentals Are Crucial
Without rentals, OST would rely mostly on grants, donations, or uncertain service revenue. With rentals:

  • Predictability: fixed monthly inflow (like municipal tax base).
  • Fairness: residents contribute in proportion to what they use (space, utilities).
  • Scalability: as OST grows, rental income scales automatically.
  • Independence: less need for risky financing methods (e.g. debt or external investors).

OST gGmbH becomes both landlord and infrastructure steward, using rent to stabilize finances. Independent businesses (cafes, barbershops, etc.) flourish within this framework, but they do not threaten OST’s nonprofit status. Instead, their existence adds vibrancy, convenience, and extra revenue streams (through commercial rents, partnerships, and events).