!"#$%&'% (&))*$+,-./#012% 3$,1454+01% 6$$&7#,+&$0% #$2%,81+4% 955:+"#,+&$%,&%% ;1,4&+,% #%0,*2-%"&))+00+&$12%<-%,81%6$$&7#,+&$%=1,>&4?%'&4%(&))*$+,+10%% '4&)%9,,&4$1-%;1<&4#8%@4&<#$%A:0&$B%% 3C1"*,+71%;+41",&4B%(1$,14%'&4%(&))*$+,-%/#012%3$,1454+01B%6$"D%% © Deborah Groban Olson June 10, 2009% T A B L E O F C O N T E N TS I. Introduction ..............................................................................................................2 II. Community-Based Enterprise Scan Taxonomy, Practices and Sectors ...................4 Table 1-A .................................................................................................................4 Table 1-B .................................................................................................................7 III. Summary of the key individuals and organizations that are exercising thought and practice leadership in the field ...........................................................12! Table 2-A Key Thought and Practice Leaders in CBE ..........................................12 Table 2-B Organizations ........................................................................................19 IV. Key Statistics .........................................................................................................24 Community Wealth Building Institutions ..............................................................25 V. Case Studies and Examples ...................................................................................26 VI. Edge of Innovation .................................................................................................50 VII. Community Based Enterprise Entities or Assistance Sources in Detroit ..............52 Table of CBEs ........................................................................................................52 VIII. Highest Potential Opportunities for Advancing Innovation ..................................62 IX. Bibliography ..........................................................................................................66 X. Appendices A. !"#$%&'()#*+,+-+,&#*.(/012(304,+51,60(70$1,#,#8(90,8%:&'%&&;*(:<( Buying from Local Cooperatives? The Evergreen Initiative by Jacquelyn Yates B. =&#;'58&#(>&'2&'5$,&#(>&&20'5+,45(!?%0(/,*+&'<(&@(5#(AB20',0#$0. C. Mondragon Corporate Management Model D. Economics, Cooperation and Employee Ownership: The Emilia Romagna Model C in more detail by John Logue E. Employee Ownership and Corporate Performance C National Center for Employee Ownership F. Worker Ownership makes you healthier and happier, not just wealthier By David Erdal, Ph.D. © Deborah Groban Olson November 3, 2008, June 10, 2009 ! "#$%&'%()*$+,-.$&'/+!0123456!,778$&992:;6<29!=5;9!>21!?22@A!7BC77DEF25! 0;G4!H!2>!BB! ! Innovation Scan of Community-Based Enterprise Best Practices and Application in Metro Detroit Executive Summary This study highlights innovations and best-practices in development and maintenance of community based enterprise systems. Its focus is to find the innovations and practices best suited to help metro Detroit rebuild its best future, based on its unique strengths, perhaps as a global green manufacturing technology and urban agriculture innovation hub. "( !$&DD-#,+<( :5*0;( 0#+0'2',*0.( E>FAG( ,*( ;0fined as a company that is sustainable; locally-rooted; intentionally structured to provide community benefit; and committed to paying living wages. A CBE system is a set of norms including, but not limited to, social customs, bases for mutual trust, educational and/or research resources, laws, tax or financial incentives, that operate to support and grow CBEs; and a mutually beneficial support system that increases the potential success of each additional CBE, which, in turn, increases the strength of the whole system. This paper provides studies of a number of such cases, a taxonomy of big ideas leading to such innovations; types of innovations, sectors and strategies. This study is the first step in actively seeking the best strategies for metro Detroit by: 1) providing the CBE innovation knowledge to a broad range of actors across the economic and social spectrum in Detroit; and 2) trial and error led by the Center for Community Based Enterprise and its partners, based on hypotheses drawn from studying these innovations and adapting them to the specific resources and challenges of metro Detroit. I. Introduction The core innovations in the community wealth-building field are driven by a newly evolving worldview including the following ideas. We are experiencing, worldwide, the impact of corporate ownership so large that it is not regulated by any government. These uncontrolled business entities have a negative impact on the ability of government to serve its traditional role of providing social goods and services necessary to nurture community and social well-being such as health, education, child and elder care, etc. The recent government investment in, or takeover of, major banks throughout Western Europe and in the U.S. provides governments with an opportunity to require corporate social responsibility that is unprecedented since the advent of global corporations. Many people are re-imagining market-based capitalism as a means for obtaining sustainable long-term social progress rather than a short-term individual gain. Consciousness is growing that local production, consumption, conservation and community ties are necessary parts of that sustainable path. A number of important and innovative community based enterprise models have matured over the last 25 -50 years providing viable examples, such as those of: Mondragon, Emilia Romanga; many ESOP companies that choose to remain employee owned in the long term; and recognition in most countries in the world that employee ownership is a successful business development and social strategy. Green technology has matured to become a respectable business strategy, and the necessity for greening society has become self-evident. Labor organizations experiment with employee ownership and work with ! "#$%&'%()*$+,-.$&'/+!0123456!,778$&992:;6<29!=5;9!>21!?22@A!7BC77DEF25! 0;G4!,!2>!BB! ! environmentalists to 80+(@-#;,#8(+&(+'5,#(+%0,'(D0D:0'*(@&'(!8'00#($&115'.(H&:*I((A#4,'&#D0#+51(H-*+,$0( &'85#,65+,&#*(&'85#,60(+'5,#,#8(&@(,##0'($,+<(20&210(@&'(!8'00#($&115'.(H&:*(5#;(215$0(D5#<(&@(+%0,'(+'5,#00*(,#( new jobs with green companies. If and when government properly supports growth of green technology, these training operations and new companies will be the backbone of the new economy. The Obama administration has taken strong action to fund such programs. It is too soon to predict the outcome. The hierarchical business model focused on the importance of huge physical capital assets and, based on the military command and control model for human interactions, has lost favor due to the rise of technology or idea-based businesses, created by young people and operated on a non-hierarchical ethos. The success of companies like Microsoft, Apple, Sun, Hewlett Packard etc, created a new view of corporate assets being primarily the people working in the companies. Many young people acquired wealth through these industries and have begun applying their business strategies to new philanthropies. A wide range of companies use tools such as open book and participatory management to engage and reward the creativity and unique gifts of every employee in the joint venture of community based businesses. ?&80+%0'J(+%0*0(+'0#;*(%540(8,40#(',*0(+&(5(%-80(#0K(0$&#&D,$($5+08&'<(&@(!*&$,51(0#+0'2',*0*.J(&'85#,60;( 5#;(&20'5+0;(:<(!*&$,51(0#+'02'0#0-'*.J(K%&(5'0(*00L,#8(5(K5<(+&(-*0(D5'L0+(;',40#(&'(2'&@,+(D5L,#8( businesses to serve social as well as economic goals. T%0(!$&DD-#,*+. &'(!*&$,51,*+. label or taboo has ceased to be applied or, has lost its power to deter people from using these strategies to enable businesses to serve social ends. This phenomenon has opened social and economic space, allowing people from diverse circumstances to experiment with different versions of this idea, and get the necessary financial investment to develop them. Now we have a number of successful examples from which to work. The economic challenges regarding competitiveness, social security, health care cost, aging population and historical trends 1show that government alone is unlikely to have the resources or will to spend what needs to be spent to rebuild the US cities. However, local anchor institutions annually spend much more than all federal economic development programs2. Many universities and hospitals are stepping up to this challenge, for self-preservation as well as social responsibility reasons. The existing multiple financial and environmental crises have opened an historic door to new ideas. Labor, businesses, environmentalists, civic and foundation leaders, community development corporations and governments are all searching for new solutions our social and economic problems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axonomy of Community-Based Enterprise Ideas, Practices and Sectors Table 1-A Category Big Ideas