Article

Business Ownership For The 99%: How To Finance It

Anne Field
Forbes

One goal for a lot of social entrepreneurs is for business ownership to be held by as many people as possible.

But that’s tricky for many reasons. Take the matter of financing. Funding inclusive models, as they’re called,  is different from financing  the usual suspects, that is, companies owned by the few that aim to maximize financial returns only.

“It’s not necessarily harder, but it seems harder, because it’s different,” says Majorie Kelly, executive vice president and senior fellow at The Democracy Collaborative. In other words, funders need a greater comfort level with these models before they dole out the money.

With that in mind, Democracy Collaborative recently published a report examining a variety of ownership models and ways to finance them. Here’s a look at a few, along with some innovative financing approaches...

A Powerful, Under-Used Tool for Addressing the Roots of Inequality: Inclusive Ownership

Marjorie Kelly
Stanford Social Innovation Review

In this blog for the Stanford Social Innovation Review, our Executive Vice President and Senior Fellow Marjorie Kelly delves into some of the groundbreaking models for inclusive ownership that are increasingly making an impact on the lives of workers and community members. Kelly offers these strategies as concrete and evolving ways to help equitably distribute wealth in the US and beyond, creating a sustainable and fair economic system:

Building the Inclusive City

Marjorie Kelly
Stanford Social Innovation Review

The Stanford Social Innovation Review features our new report, Cities Building Community Wealth, emphasizing that the innovative collaborative approaches to economic development highlighted by author Marjorie Kelly are truly seeing results.

7 Paths to Development That Bring Neighborhoods Wealth, Not Gentrification

Marjorie Kelly and Sarah McKinley
Yes! Magazine

YES! Magazine talks to Marjorie Kelly about the seven drivers cities can use to develop economies that build community wealth detailed in our report, Cities Building Community Wealth

More Cities Get Serious About Community Wealth-Building

Anne Field

Following the release of our report, Cities Building Community Wealth, journalist Anne Fields emphasizes the growing need for local governments to pass policies that benefit communities. Field draws examples from Marjorie Kelly and Sarah McKinley (co-authors of the report) that discuss the 20 cities highlighted in the report.

Taking the Bureaucratic-Speak Out of Community Wealth Building

Oscar Perry Abello
Next City

Next City reporter Oscar Perry Abello highlights the innovation inherent in the Democracy Collaborative report, Cities Building Community Wealth. Abello describes authors Marjorie Kelly and Sarah McKinley as important voices in exposing the Community Wealth Building movement, "a movement that has been brewing beneath the radar for at least 40 years."

Communities Building Their Own Economies

Steve Dubb
Stanford Social Innovation Review

Steve Dubb writes for the Stanford Social Innovation Review on the importance of having access to tools that educate and empower low-income communities to shape their economic future.

Empowering communities to take control of economic development is slow, patient work—and people funding or supporting it need to take this into account when assessing success. Long-term, place-based commitments are critical; parachuting in and out does little to build local capacity. And the metrics we use need to take into account the often intangible relationship-building that weaves together a truly empowered community; shortcuts and quick fixes can cause real damage.

How Communities Can Build Wealth by Knocking on Doors

Oscar Perry Abello
Next City

In Next City, Oscar Perry Abello looks at how our new report Educate and Empower highlights key strategies for building stronger community wealth building initiatives.

“People know that there are door-knocking campaigns and community organizers do it all the time, but have they thought of this consciously as a tool for economic development,” explains Keane Bhatt, senior associate for policy and strategy at the Democracy Collaborative, based in Takoma Park, Maryland. Bhatt is co-author of Educate and Empower: Tools for Building Community Wealth, a report released today that features profiles of 11 organizations includingPUSH Buffalo.

“What we’ve done is go around to 11 different community-wealth building institutions to try to seek out from a broad diversity of initiatives some kind of underlying themes that are crosscutting in nature,” Bhatt says...

Read the rest at Next City

 

Mayor Brown Announces Task Force Members For Economic Development Initiative in Northwest Jacksonville

City of Jacksonville
City of Jacksonville

Goal is to Create Jobs with Innovative, Community-Based Economic Development

Mayor Alvin Brown today announced the members of a newly-formed task force to guide a Community Wealth Building Initiative that will focus on new strategies to create jobs and business opportunities in Northwest Jacksonville.

Mayor Warren announces new co-op business

WHAM

Rochester, N.Y. - Mayor Lovely Warren has announced a new co-op business in Rochester...read more

Embracing the Economy as a Design Challenge

Jennifer Atlee

The consulting engineers at Integral Group are accustomed to working with clients early in an integrated design process. Working with Kevin Bates, president of Sharp Development Company, was different, however. “The first meeting wasn’t a design meeting—it was a financial meeting,” said John Andary of Integral Group, of a recent project with Bates. “As long as [Bates] was meeting his ROI [return on investment] and capitalization rate he was willing to spend whatever money, even if he was planning to sell the building.”...read more

Cooperative Future: Rochester Startup Corp. Announces Eneroc Project

Wendy Mills

SPECTRUM NEWS VIDEO: The city of Rochester is moving forward with its initiative to create more jobs for people who live in Rochester's most challenging neighborhoods. The city's Market Driven Community Corporation announced it's first startup business Wednesday...watch here

Austin Council Votes to Boost Worker Cooperatives

Oscar Perry Abello

As policymakers around the U.S. continue to consider how to support entrepreneurship in ways that generate widely shared wealth across all lines of race, class and gender, many have been eyeing worker cooperatives...read more

ENEROC enters into agreement on LED project

Kerry Feltner and Andrea Deckert

ENEROC LLC—the inaugural business of the Market Driven Community Corp.—has entered into an agreement to be a subcontractor for an LED lighting installation project at Rochester General Hospital...read more

City Co-Op Program Launches First Startup

Sean Lahman

A year ago, city officials said they'd help to create worker cooperatives in some of Rochester's poorest neighborhoods.  At these businesses, employees could become partial owners — and when the company profits, these workers would share in the rewards...read more 

How Philanthropy Can Help Community Development Survive Trump

Gar Alperovitz and Ted Howard

Donald Trump will not be president forever, but in his time in office he can do substantial damage in many areas of American life. As one donor told us, "We risk having 40 years of progress in community development unraveled in the next 18 months."

Principally, that’s because the new administration, along with Republican congressional leaders, is targeting federal spending on social programs and community development — a major bulwark against the consequences of generational poverty and ever-growing wealth inequality. Hundreds of billions of dollars are at risk.

Philanthropy, which awards about $60 billion in grants annually, cannot possibly meet this shortfall. But it can help ensure that when the political winds change, as they inevitably will, the pieces are in place for a progressive agenda. One key way to do this is to support innovative local and regional programs that can be expanded nationally when the opening occurs.

Banking On Justice

James Trimarco

A Yes Special Report...In the poorest region of the nation’s poorest state, a tiny government program keeps money flowing through mom-and-pop financial institutions in the Mississippi Delta—changing lives....read more

The Hidden Threat of Tax Cuts to Equitable Economic Development

Rooflines

Although the Trump administration’s recent budget proposal offers only a look at expenses, with no numbers on revenue, it won’t be long before massive cuts to corporate taxes are on the agenda, as Trump has promised. Before the noise machine ramps up on that issue, it’s an apt time to stop and consider the unintended consequences such tax breaks could have. The hidden danger in broad cuts to the corporate tax rate is this: these cuts would blunt the effectiveness of key policies designed to support communities and an inclusive economy...read more