Co-operative businesses are a distinctive form of business organization which actively seek to involve the workforce in decision-making ang they are also likely to empahsize training and skill formation, possible more so than conventional private businesses. This series of working papers presents the results of a research project as part of the ESRC Small Business Initiative comparing the performance of co-operative enterprises in a number of European countries (Italy, Portugal, Spain) where they are relatively well established. This report on the evolution of southern Europe's workers' co-operatives provides a comparative perspective that includes coverage of Italy, Spain and Portugal.