Purchasing cooperatives are a special type of highly engaged independent small business networks. A purchasing coop is itself a business, one that is owned by its member businesses—typically in the same industry—that come together to aggregate their purchasing power and receive other network benefits. Most purchasing coops exist to help independent businesses remain independently-owned. Some that may be more familiar include ACE Hardware, True Value and Carpet One. And, there are many in the business-to-business space that are less well known but provide vital services to local businesses around the United States.
One of their challenges is that, from our research, an estimated half of the member business owners are over age 55. Succession planning is critical to maintaining member companies in purchasing coops, and in any small business network. Project Equity partnered with National Cooperative Bank and the National Cooperative Business Association to look at how purchasing cooperatives can retain their member businesses through succession planning and employee ownership transitions.
Published July 2017.
While the impact investing field has taken off in recent years and has influenced mainstream banking priorities, worker cooperatives are not yet a viable option for a typical impact investor interested in ‘investing with purpose.’ In these two publications, we address the question: What would it take for an investor to be able to easily target part of their investment portfolio to worker-owned cooperatives, to ‘mainstream’ the practice of investing in worker cooperatives?
Published: April 2017.
- What is a Worker-Owned Cooperative?
- Is a Worker Coop the Right Fit for My Business?
- How to Finance Your Worker Coop
- Managing Cultural Transitions to a Worker Coop
- Converting Your Business to a Worker-Owned Cooperative: An Overview
Published: October 2016.
This publication, jointly authored by Cooperative Fund of New England, Project Equity, and Democracy at Work Institute, answers Frequently Asked Questions about lending to worker coops that we often hear from lenders. This “primer” helps lenders learn about the opportunity and also details, about structuring deals from other lenders with experience with worker coop conversions. The publication includes five case of coop conversion financing.
Published: January 2016.
The Cooperative Growth Ecosystem framework encourages diverse stakeholders in the field of community economic development to invest in inclusive economic development by fostering cooperatively owned enterprises within a broader entrepreneurial “ecosystem.” It helps answer the question, “How can all the actors in a place work together strategically to turn the demand for worker cooperatives into the supply of what is needed to create them?”
Project Equity co-developed the Cooperative Growth Ecosystem framework, with the Democracy at Work Institute and piloted it as an analytical and strategy tool looking at five regions around the country.
Published: January 2016.
This collection of case studies shows a range of examples of how specific businesses have converted from traditional business structures to become worker owned. This is an important reference for businesses considering converting to a worker coop, as well as any individual who would like to learn more about the specifics of the worker cooperative conversions.
Published: April 2015.
This paper describes a project in the Bay Area of California to create a local action plan for moving towards scale and impact of worker cooperative development by engaging multi-sectoral actors. It includes a framework for assessing the opportunities in a local region to increase worker coops to benefit low wage workers, and takeaways for other regions that want to apply a similar approach.
Published: March 2015.
The field of worker co-op development is just beginning to create the infrastructure and knowledge base needed to increase its scale and impact. This paper aims to help build the field of U.S. worker co-op development by providing a current view of the cooperative landscape and by analyzing factors that inhibit or promote cooperative development
Published: June 2014.
New studies shows millions of businesses at risk, points to employee ownership as a solution.
for businesses interested in employee ownership