Covering five years of business progress, the 2017 Worker Cooperative State of the Sector is a report on worker-owned business in the United States. This report is a co-production of Democracy at Work Institute and U.S. Federation of Worker Cooperatives, drawing upon the latest developments in the field, and deepens our understanding of the sector.
Cubriendo cinco años del progreso empresarial, El Estado del Sector de Cooperativas de Trabajo de 2017 es un informe sobre las empresas que son propiedad de los trabajadores en los Estados Unidos. Este informe es una coproducción entre el Instituto de Democracia en el Trabajo y la Federación de Cooperativas de Trabajadores de los Estados Unidos, basándonos en los últimos desarrollos en el campo y profundizando nuestra comprensión del sector.
The 2016 State of the Sector report, a co-production of the Democracy at Work Institute and U.S. Federation of Worker Cooperatives covers research on worker-owned enterprises through 2016.
Transitioning your small business to employee ownership can have positive impacts on employee engagement, productivity, and retention; anchor a lasting legacy for your efforts building the business; and offer a financially rewarding exit path that can be supported by experienced professional assistance.
Together with Citi Community Development, Democracy at Work Institute (DAWI) is collaborating with National Urban League and key local leaders to enable more people to share in business assets in their communities– not through creating new businesses, but through leveraging and preserving assets already invested in communities, specifically by promoting shared ownership of existing businesses.
The latest State of the Sector report by the Democracy at Work Institute and U.S. Federation of Worker Cooperatives covers research on worker-owned enterprises through 2015. Three years into surveying worker cooperatives on a national scale, we are positioned to analyze stability and change—demographically, and in terms of business performance, wages, and benefits.
This resource uses diagrams to depict how the different forms of employee ownership are structured. It focuses on the two primary vehicles for broad-based employee ownership in the United States: worker cooperatives and employee stock ownership plans.
For financial institutions looking to create deep and lasting impact, worker cooperatives are a powerful tool for economic and community development. They reduce inequality by allowing a greater segment of the population to build assets through business ownership. They combat poverty by providing access to employment for marginalized populations. And they strengthen local economies by rooting businesses in their communities.
The idea of selling a business to its employees and converting it to a worker owned cooperative is gaining traction as a viable succession strategy. It is a strategy that saves jobs, builds community wealth, and empowers workers to own and manage their own business. Worker cooperatives differ from other business entity types in that they are owned and democratically controlled by their workers, and workers share in the risk and reward of operating the business.
This research paper summarizes an examination of the National Establishment Time Series (NETS) dataset for North Carolina and Iowa to gauge the potential for conversions of existing businesses to worker cooperatives. The data demonstrate that the potential is quite large, and that even if only a fraction of these successfully converted to worker ownership and continued to operate at their last year levels, there would be meaningful economic impacts.