The Financial Times published a feature on growth in worker cooperatives, especially in Richmond, California, entitled “When Workers Run the Show.” Reporter April Dembowsky interviewed NCBA Interim CEO Liz Baily for the piece. As part of the conversation, Liz discussed some of the challenges that can affect development of worker co-ops:
Forming a worker-owned co-operative involves overcoming three main challenges, says Liz Bailey from the National Cooperative Business Association:
● Investment: Unlike conventional entrepreneurship, you have to raise capital from your own members, based on what they can afford.
● Management: When setting up and running a co-op, the culture of the workforce changes from being employees to being management. If you have a group that has always worked for someone else, a growth period and training are required to help people develop the new mindset.
● Time: A co-operative is not built overnight. Incorporation of a co-op may take longer, in order to build a sense of ownership.
Read the entire article here (you must subscribe to access).
Join the Conversation