What does it mean to build black wealth using co-ops and how does it show up in your work at DCWF?

DCWF Formation

DCWF grew from a singular idea: redistributing financial resources to people of African descent in Detroit.  We aimed to start our version of a black bank which would partner with entrepreneurs to support their business with capital and in the process develop the business into cooperative ownership.  This was more than just a conversation, this was a cross-sectional organized effort nationally to move from an extractive economy to cooperative, regenerative economy.  Through the lens of climate justice meets economic justice this “Reinvest in Our Power” work was  brought to Detroit in 2015 by Bryce Detroit.  We then began building up our team to accomplish our goal of a non-extractive financial institution able to lend to our community.  Now we have a board, successful loan projects, two staff members and growing!   We have developed impactful educational programming and began cultivating a great community of aspiring cooperative members. 

History

In order to fully grasp the importance of establishing a cooperative ecosystem centering the lives of people of African descent we must first unpack our recent history.  African people have practiced cooperative economics since ancient times and this concept is experiencing a much needed resurgence. 

“African Americans have a long, rich history of cooperative ownership, especially in reaction to market failures and economic racial discrimination . . . My research suggests that African Americans, as well as other people of color and low-income people, have benefited greatly from cooperative ownership and democratic economic participation throughout the history of the United States .” (From the introduction to Collective Courage by Jessica Gordon Nembhard) Worker or consumer-owned alternatives to U.S. capitalism helped train and produce civil rights leaders from A. Philip Randolph to Ella Baker and Fannie Lou Hamer to sitting congressman John Lewis (D-Ga.) W.E.B Dubois and Marcus Garvey were also strong advocates for cooperatives. 

Dr. Gordon-Nembhard goes on to say, “...even if the co-op failed after a few years, there were multiple spillover effects on both individuals and the communities. All members have to learn the business, how to read the books, develop skills in accounting, in the industry, in democratic participation, social networking. In short, leadership gets developed. People went on to do better and more things like run for political office or start or run other organizations. That can happen for any group of marginalized people.” (Jessica Gordon Nembhard)

Cooperatives have been a critical part of the history of people of African descent in America.  Co-op impact comes in many forms whether pooling resources together to buy family members out of slavery, engaging in economic solidarity strategies during civil rights, and even starting study groups that evolve into cooperative projects.  In alignment with this history, DCWF team member B. Anthony Holley co-facilitated a study group hosted by KAN Books to delve into the work towards building black wealth and power shared in “Jackson Rising: Struggle for Economic Self-Determination in Jackson, Mississippi”

DCWF Programming

An important component of our work at Detroit Community Wealth Fund is educational programming promoting the benefits of cooperatives, worker ownership, and non-extractive finance.  Our workshop “Tools for Building Black Wealth” is introducing the impact co-ops can make in the Black communities.  It highlights case studies and existing cooperatives  that show how possible and feasible co-ops  are for your community.  In the workshop we share how construction, real estate investing, and restaurants are just a few areas that are ripe for worker ownership.

We have also successfully led co-op academies were we guide a co-hort of aspiring co-op members through 10-12 sessions of training.  DCWF also has held special thematic series including “Co-ops for Communities of Color Series” where we present on various co-op types, host co-op game nights, and discuss how co-ops are formed as well as their relation to Black and diasporic African culture. During “Building the Future Series”.  During series we provided tools for navigating business development amidst global pandemic. Most recently, we launched a Co-op Kickstart 4-part series to provide additional training on what it really looks like to start a co-op business for aspiring co-op members and people exploring the idea.

What’s Needed

It’s important to have a vision of how cooperatives can have an even greater impact in the Detroit area and respective communities that comprise it.An intentional focus on funding organizations committed to growing and supporting the number of worker-owned businesses.  With more intention on cooperative structure as viable business strategy comes more resources and incentives for supporting both start-up co-ops and conversions. We look forward to convening presentations at a municipal level by co-ops to convey worker ownership as an economic development and sustainability opportunity for cities like Detroit and Highland Park. Cultivating strong relationships that support workforce development from a cooperative lens and facilitates the activation of co-op corridors in neighborhoods. These aims reinforce the need for DCWF to continue working with organizational partners who desire black worker ownership in their neighborhood.

What’s Happening

There are some examples of Black co-ops that exist currently.  They show us that the generative community of cooperatives and co-owners is not only possible but happening!  A few examples are Detroit People’s Food Co-op, Rich City Rides, KAN Books, Detroit Playcare.  The examples span from food co-ops to bike shops to childcare.  We are happy to be in community with these co-op all-stars. Detroit Peoples Food Co-op is an emerging black-led food co-op and startup owned by its future customers referred to as consumer-owners. Rich City Rides is worker owned bike shop in Richmond, CA that has served as a catalyst for other cooperative activities in the region. Detroit Playcare is an emerging childcare co-op in Detroit owned and operated by Black mothers providing this much needed community service to events, organizations, and venues. Lastly, KAN Books is a cooperatively bookstore in Detroit’s Northend neighborhood which hosts community events and uplifts black art, authors, and other activities of black excellence. Each of these businesses serve the community well providing a much needed resource and further builds towards the beloved community we know is already happening.

From our Fall 2019 Co-op Academy