incubating sustainable worker-owned co-ops
DESCRIPTION
Worker co-ops can yield innumerable benefits to low-income immigrant and other vulnerable communities, including job creation and wealth-building opportunities, healthy, democratically-run workplaces, leadership development, and social cohesion. This webinar will share the key benefits and challenges of the worker co-op model, and describe what functions and conditions are required for nonprofits to successfully build a sustainable worker-owned co-op.TRANSCRIPT
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Sponsored by:
Incubating Sustainable
Worker Co-ops
Meche Sansores, Alex Armenta, and Elena Fairley August 14, 2013
Twitter Hashtag - #npweb
Part
Of:
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Sponsored by:
Advising nonprofits in:
• Strategy
• Planning
• Organizational Development
www.synthesispartnership.com
(617) 969-1881
INTEGRATED PLANNING
Part
Of:
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Sponsored by: Part
Of:
Coming Soon
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Sponsored by:
Today’s Speakers
Hosting:
Sam Frank, Synthesis Partnership Assisting with chat questions: Jamie Maloney, 4Good
Alex Armenta Associate Director
WAGES
Part
Of:
Meche Sansores Executive Director
WAGES
Elena Fairley Communications &
Development Associate
WAGES
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INCUBATING SUSTAINABLE WORKER-OWNED CO-OPS
Meche Sansores, Executive Director of WAGES
Alex Armenta, Associate Director of WAGES Elena Fairley, Communications and Development Associate at WAGES
August 14, 2013
Women’s Action to Gain Economic Security
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Today’s goal
Our goal for this webinar is to answer the following questions: 1. What are the main challenges creating long-lasting opportunities for low-
income women and immigrant communities? 1. How does WAGES’ model of co-op incubation address these challenges? 1. What functions and conditions are required to be equipped to be a holistic
co-op business developer?
Incubating Sustainable Worker-Owned Co-ops – presentation by WAGES
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Part 1: What are the main challenges creating long-
lasting opportunities for low-income women and immigrant communities?
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What are the challenges?
Part 1: Challenges
Sustainable economic opportunity
Economic integration
Next generation dreams
HIGH BARRIERS TO EMPLOYMENT x Limited English proficiency x Few opportunities that offer good pay and working conditions x Lack of access to educational opportunities
Incubating Sustainable Worker-Owned Co-ops – presentation by WAGES
HIGH BARRIERS TO ENTREPRENEURSHIP x Understanding business models, market feasibility, US consumer culture x Navigating business regulations and requirements x Stresses and burdens of sole proprietorship over time x Vulnerability to market shocks
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Microenterprise or Worker Co-ops?
Higher level of expertise required
Higher start-up costs
Greater control over business
Lower barriers to entry
Lower start-up costs
Less control over business
Part 2: The Co-op Solution
Microenterprise Worker Co-ops
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Part 2: How does WAGES’ model of co-op incubation address these challenges?
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Co-ops in the U.S.
30,000 co-ops in the U.S.
Over 100 million members
There are 5 types of co-ops
Producer Consumer Purchasing Hybrid Worker
Snapshot of Cooperatives
Part 2: The Co-op Solution
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More on Worker Co-ops
Worker cooperatives are businesses that are owned and democratically governed by their employees.
Key elements:
Democratic Governance
Profit Sharing
Worker Co-op Snapshot:
• 300 worker co-ops in the U.S. • 40 of those are immigrant-owned
Arizmendi Bakery Evergreen Cooperatives Emma’s Eco-Clean
Part 2: The Co-op Solution
Examples:
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Proven Results: Stable, Secure Businesses and Earnings
5 Bay Area Cooperatives
$3.2M combined annual sales
103 jobs
Benefits – ie medical, time off, disability
Average member tenure 4.2 to 6 years
Individual incomes 158%
Median household income 70-86%
Part 2: The Co-op Solution
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Proven Results: Personal, Social, Financial Assets
Median retained earnings asset @ $9,219, w/ no-interest loans
Secure, stable earnings through co-op profit distribution
Personal capability and leadership development
Protection from workplace hazards and abuses
Social support and coherence
Part 2: The Co-op Solution
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Part 3: What functions and conditions are required
to be equipped to be a holistic co-op business developer?
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What is WAGES’ role?
Part 2: The Co-op Solution
WAGES is a co-op incubator. WAGES builds co-ops that empower low-income
immigrant Latinas to become entrepreneurs, achieve financial security, and exercise leadership.
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Services for co-op members are provided in small group settings as well as individual business consulting, mentoring, and coaching.
Intensive co-op member leadership development
Communications and conflict resolution
Social entrepreneurship and business management
Co-op principles
Co-op governance
Financial inclusion
Co-op shared services
Services provided
Part 3: What is needed
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There are 5 phases in cooperative development that make WAGES’ model unique.
Business Development And Incubation
Part 3: What is needed
I. Business Planning
II. Business Launch
III. Business Incubation
IV. Business Graduation
V. Post-graduation Support
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In worker co-ops, the two extremes of business imperatives and social commitments can function synergistically, creating mutually reinforcing positive outcomes.
Building a relational culture in our economy
Part 3: What is needed
Business Imperative
Social Commitment
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Co-op Principles
1. Voluntary and open membership
2. Democratic member control
3. Member economic participation
4. Autonomy and independence
5. Education, training, and information
6. Cooperation among cooperatives
7. Concern for community
Part 2: The Co-op Solution
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Skills Required
In order to succeed in building a worker co-op, incubators must draw from a wide skill set that spans business development and individual leadership development. Co-op incubators must wear many hats, which can at times be in conflict.
Part 3: What is needed
Business Developer Leadership Coach
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Basic Requirements to Launch a Co-op
Part 3: What is needed
1. Skilled and experienced co-op business developer staff and/or consultants
2. Feasible business plan
3. Secured/identified diverse sources of funding
4. Program training and mentoring curriculum for:
• Co-op member development
• Management support
5. Formalized commitment from the Board of Directors as well as a group of founding members
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Conclusion
1. Cooperatives are a viable option to address challenges that immigrants
face.
2. Worker co-ops are a high-resource, high-impact model to help low-income workers and immigrants achieve financial security.
1. Undertaking a worker co-op project requires extensive resources, and a
broad skillset that spans business development and leadership development.
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www.wagescooperatives.org/learn
See technical assistance page for:
• Downloadable Foundations of WAGES Cooperatives
• Upcoming tools for co-op developers and communities
• Updates on 2014 Co-op Intensive Institute
Thank you!
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Any questions?
Incubating Sustainable Worker-Owned Co-ops – presentation by WAGES