They made the short journey over the Howardian Hills to live in a smaller property, swapping one desirable village for another.

But rural life in North Yorkshire is one of contrasts. In Sinnington the Cobbs had a large house on a riverbank and hardly any local amenities. "There's a church and an inn and that's about it now," said Bryan, a former Army officer and farmer.

When they arrived in Stillington two years ago, they found that Main Street, their new address, meant what it said. There are two pubs, a veterinary practice, an Indian restaurant and, a few doors from the Cobbs' cottage, something they find precious after years without one – a shop and post office.

The fact both have survived is a tribute to local people. The secret to their success is contained in the store's logo: "Owned by the community, managed by volunteers".

It would be unfair to draw direct comparisons between the two villages when Stillington has a population of about 800, more than twice that of Sinnington. But the Cobbs can't help but see the difference when social change and motivation combine.

Bryan, a churchwarden and parish councillor in his previous life, says: "In a small village the same few active individuals tend to do all the jobs. In Stillington there have been more incomers and there are younger retired people who are willing to do things and contribute their various skills. The result is impressive."

At 83, he is content to let others do the work now, but he and his wife are grateful beneficiaries of Stillington Post Office and Stores.

There are about 500 community shops around the country, each using an operating model tailored to its needs. The Stillington version was created in 2003 when the couple who ran the shop and post office called it a day, weary of the long hours and minimal financial return.

When they couldn't find a buyer the plan was to turn the premises into a home. But what Stillington needed more than another period conversion was to maintain its retail lifeline.

With advice from the Village Retail Services Association, residents from throughout the area came to the rescue. Soon 200 had each bought a £10 share to help meet the start-up costs of Stillington Community Association Ltd. – its legal status somewhere between a limited company and a charity.

The challenge was formidable. Campaigners had to raise £135,000 in three months to buy the business and building.

A bank gave the association a commercial mortgage and a man stopped one of the organisers in the street and thrust an envelope in his hand containing several hundred pounds. Defra provided a grant of £49,250, and another £35,000 was raised through £500 bonds, which in effect are loans repayable after 15 years, plus annual interest of four per cent. Some of the investors came from neighbouring villages which lost their shop and post office and rely on Stillington to provide the service. The shop reopened under its new format the day after the previous owners retired.

Then there were human factors to consider. Who would run the shop without the crippling expense of wages? Villagers responded again. Today more than 50 volunteers share a rota which enables the shop to open from 6.30am to 5.30pm every weekday, and until lunchtime on Saturdays. The post office is also open six days a week.

It's the voluntary element that makes the venture financially viable. The only paid employees are seven part-time staff in the post office, and five newspaper delivery boys and girls. The post office has a separate turnover, is self-financing and its presence encourages sales in the shop, where business is booming. Despite being small it stocks over 1,000 lines, from household products, toiletries and greetings cards, to groceries and Yorkshire-produced foodstuffs, including eggs cheaper than a supermarket's and homemade cakes "of the kind you can't get at Tesco". They considered selling alcohol too, but such is the community ethos they decided against because it threatened to take trade away from their neighbours, the pubs.

A room above the shop has been converted to provide internet access, photocopying, a fax machine and other office services, and the walls have become a gallery showcasing and selling the work of local artists.

The shop's average weekly income is now approaching £4,000. A 39 per cent growth in operating profits on the last balance sheet, combined with lower interest payments, are helping to pay off the mortgage ahead of schedule. It's already been reduced by more than half to £45,000, and when it's all repaid within the next three years Stillington will own a thriving business, largely through its own efforts.

The association is sharing its experiences with other villages looking to go into self-help retail, but points out that its model won't suit everywhere. Population size is a factor, but crucial to success is the need for a large pool of volunteers committed to supporting the project long-term – serving the village's interests as well as customers.

In Stillington's case, the £10 shareholders can have their say at regular meetings, and the shop's operating strategy is led by eight directors who brought a wealth of expertise from their previous careers, but little in the way of experience in retailing. It's been a steep learning curve for, among others, an ex-RAF pilot, an architect, a former government scientist, a personnel specialist, and local councillor Christine Cookman, who became the postmistress after attending a training course.

The chairman is Andrew Harrison and in the shop he's applied some of what he does for a living – his company instructs clients on teamwork and how to monitor budgets and supplies.

His deputy is Brian Handley who spent 25 years with the Yorkshire Tourist Board, 12 of them as chief executive. At 6am most days he's now to be found sorting newspapers for delivery to a hundred customers. His family have suggested he's crackers to want such a burden when he's not far off 70. He replies that he can't help himself.

"When we launched the Community Association," he said, "there were a few cynics and sceptics who said we were swimming against the tide, that the village shop and post office were finished. We've proved them wrong, established a sound business with local customers and passing trade, and survived the culling of rural post offices.

"It's been hard work and the successful outcome is down to the goodwill and enthusiasm of a lot of people who give their time freely to maintain something that's beyond price. It's changed our lives."

Andrew Harrison says: "The shop is not just a retail outlet. It's an information point and meeting place, a social service at the heart of the village. There have been many examples of villages going downhill after their shop closed. Once it goes other businesses tend to follow, like a collapsing pack of cards. Dozens of people in this area were determined that wouldn't happen here."

Among the organisations Harrison's company advises on efficiency is the European Space Agency. As a retailer he's discovered that some of the principles behind exploration of the planets are not that different from selling Mars bars and Galaxy within the orbit of Stillington.