Community Based Enterprise, Inc. C2BE

1. community Based Enterprise, Inc. (C2BE) Building Community Wealth in Detroit: Lessons & Future

2. 2 What is a Community Based Enterprise (CBE)? A Community Based Enterprise (CBE) is a for-profit or non-profit business that is: Sustainable Locally rooted Intentionally structured to provide community benefits; and Committed to paying living wages

3. Key Ideas Community Based-Enterprise (CBE): Means working together for mutual self-help Helps communities out of economic distress CBE Week introduces successful examples to Detroit Mondragon: 50 years from 0 to 100,000 jobs and assets of 38 million euro Ohio: EO manufacturing companies lose 1% job loss to 29% state average Maryland Brush� old, inner-city employee -owned company makes the leap to green economy product Local examples around the city 3 Community Based Enterprise (CBE) starts with people working together for mutual self-help. CBE has proven successful in lifting communities out of economic distress. Wide range of successful examples of CBEs � large and small CBE Week introduces many of those examples to Detroit � from within Detroit and from Spain, Italy, Ohio and Maryland Maryland Brush - employee owned company companies � including inner city, industrial, old economy businesses that are making the leap to new economy businesses Community Based Enterprise (CBE) starts with people working together for mutual self-help. CBE has proven successful in lifting communities out of economic distress. Wide range of successful examples of CBEs � large and small CBE Week introduces many of those examples to Detroit � from within Detroit and from Spain, Italy, Ohio and Maryland Maryland Brush - employee owned company companies � including inner city, industrial, old economy businesses that are making the leap to new economy businesses

4. Key Ideas Common features of long term major successes: multi-firm support structure government aids business clusters co-operation among businesses patient community capital � grown locally C2BE�s vision Create information & TA resource CBE network & support structure Success = new business & jobs, created & rooted locally 4 The long term major successes have: a support structure larger than the single firm regional government supporting business clusters and /or co-operation among co-operatives and a means to grow patient community capital C2BE�s vision is to create a resource and support structure to enable scalable CBE success in SE Michigan. The long term major successes have: a support structure larger than the single firm regional government supporting business clusters and /or co-operation among co-operatives and a means to grow patient community capital C2BE�s vision is to create a resource and support structure to enable scalable CBE success in SE Michigan.

5. Center for Community Based Enterprise is A non-profit organization Providing research, education & technical assistance on broad, rooted ownership practices Seeking to create a resource center & co-operative network 5 A non-profit organization Providing education & technical assistance on using broad, local ownership of businesses to build strong communities. Connecting diverse and unique local resources. Seeking to create a resource center & co-operative network to help community-based businesses work together to become more successful. Similar to those centers - described in our innovation scan & speaker series - in Spain, Italy and Ohio. A non-profit organization Providing education & technical assistance on using broad, local ownership of businesses to build strong communities. Connecting diverse and unique local resources. Seeking to create a resource center & co-operative network to help community-based businesses work together to become more successful. Similar to those centers - described in our innovation scan & speaker series - in Spain, Italy and Ohio.

6. 6 Strategy � Local Focus Reverse of traditional companies that start from products CBE starts with local people & rootedness criteria Seeks viable business opportunities that can pay living wages Capitalizes on local resources Reverse of traditional companies that start from products Starts with local people, resources, & rootedness criteria Seeks viable business opportunities that can pay living wages, such as proprietary products, local resource based products & services Capitalizing on local resources.Reverse of traditional companies that start from products Starts with local people, resources, & rootedness criteria Seeks viable business opportunities that can pay living wages, such as proprietary products, local resource based products & services Capitalizing on local resources.

7. 7 Underutilized Local Resources Thousands of highly skilled workers Sophisticated technology, facilities & infrastructure Idle intellectual property (IP), with near-term market potential Excellent education & training facilities Fresh water & flat land Urban agriculture leader Anchor institution supply chains � where not local Thousands of highly skilled professional, technical and hourly workers, who want to stay in the area Sophisticated technology, facilities & infrastructure Lots of idle intellectual property (IP), with near-term market potential, at 230 local manufacturing technology companies � R&D companies for OEM and auto suppliers� world�s highest concentration 25% of green energy patents in the US are owned by people in Michigan � mostly auto companies Socially responsible capital seeking investment opportunities Excellent education & training facilities Fresh water & flat land Urban agriculture/ food security network Anchor institution supply chains � where not local Thousands of highly skilled professional, technical and hourly workers, who want to stay in the area Sophisticated technology, facilities & infrastructure Lots of idle intellectual property (IP), with near-term market potential, at 230 local manufacturing technology companies � R&D companies for OEM and auto suppliers� world�s highest concentration 25% of green energy patents in the US are owned by people in Michigan � mostly auto companies Socially responsible capital seeking investment opportunities Excellent education & training facilities Fresh water & flat land Urban agriculture/ food security network Anchor institution supply chains � where not local

8. 8 Product Savvy People Need Entrepreneurial Support 100 years big companies dominate Detroit Lots of Detroiters know how to make things - fewer are entrepreneurs Newly trained entrepreneurs need a support system to succeed Shared business resources help product people to focus on their strengths & share scarce management resources For 100 years people came here to work for big companies. We have lots of people who know how to make things, and fewer who are entrepreneurs. Newly trained entrepreneurs need a support system to succeed In the US, 1 out of 5 start-up companies still exists in 5 years, in the Mondragon area, 4 out of 5 are there in 5 years and 83% in 10 years Shared business resources enable the product people to focus on their strengths, and share scarce management resources. For 100 years people came here to work for big companies. We have lots of people who know how to make things, and fewer who are entrepreneurs. Newly trained entrepreneurs need a support system to succeed In the US, 1 out of 5 start-up companies still exists in 5 years, in the Mondragon area, 4 out of 5 are there in 5 years and 83% in 10 years Shared business resources enable the product people to focus on their strengths, and share scarce management resources.

9. What�s next? Depends on you Is CBE useful to the communities you know? If so, what can we all do to make it real in Metro Detroit? 9 Depends on you Are C2BE�s ideas relevant to your life? If so, what can you do to make them real in Metro Detroit? Join C2BE Volunteer to organize or lead a working group Find or contribute resources to staff the work Depends on you Are C2BE�s ideas relevant to your life? If so, what can you do to make them real in Metro Detroit? Join C2BE Volunteer to organize or lead a working group Find or contribute resources to staff the work

10. 10 C2BE Proposed Next Steps Find Local CBEs learn their capacities & needs Create Network of Local CBEs to: collaborate find synergies share resources do systematic �buy local� marketing Collaboration to Scale Up CBEs Create a resource co-operative as a core business platform for scaling (share back office, jointly bid on large projects, etc.) CBE Best Practices Education open book management, employee ownership tax & operational advantages & other best practices Find Local CBEs learn their capacities & needs Create Network of Local CBEs to: collaborate find synergies share resources do systematic �buy local� marketing Collaboration to Scale Up CBEs Create a resource co-operative as a core business platform for scaling (share back office, jointly bid on large projects, etc.) CBE Best Practices Education open book management, employee ownership tax & operational advantages & other best practices Find Local CBEs learn their capacities & needs Create Network of Local CBEs to: collaborate find synergies share resources do systematic �buy local� marketing Collaboration to Scale Up CBEs Create a resource co-operative as a core business platform for scaling (share back office, jointly bid on large projects, etc.) CBE Best Practices Education open book management, employee ownership tax & operational advantages & other best practices

11. 11 C2BE Proposed Next Steps (con�t.)P Business & innovation broker Established Ingenuity US, L3C (IUS) to: seek out & develop business innovation opportunities create patient community capital by reinvesting % of profits in CBE group seek products, business ideas & patents for development by local talent Help workers explore entrepreneurship as option after buy-out or lay-off Shepherd NTEs through incubation programs & funding sources Clearinghouse for TA to create CBEs Business & innovation broker Established Ingenuity US, L3C (IUS) to: seek out & develop business innovation opportunities create patient community capital by reinvesting % of profits in CBE group seek products, business ideas & patents for development by local talent Help workers explore entrepreneurship as option after buy-out or lay-off Shepherd NTEs through incubation programs & funding sources Clearinghouse for TA to create CBEs Business & innovation broker Established Ingenuity US, L3C (IUS) to: seek out & develop business innovation opportunities create patient community capital by reinvesting % of profits in CBE group seek products, business ideas & patents for development by local talent Help workers explore entrepreneurship as option after buy-out or lay-off Shepherd NTEs through incubation programs & funding sources Clearinghouse for TA to create CBEs

12. 12 For more information or to get involved � 108 diverse advisors � Organizations & individual memberships available � Contributions are tax deductible C2BE is a non-profit corporation with 501(c)(3) status. Ingenuity US, L3C is a mission-driven company implementing C2BE�s ideas. Contact Deborah Groban Olson, Executive Director Center for Community Based Enterprise, Inc. P.O. Box 15652, Detroit, MI 48215 (313) 331-7821 ofc., (313) 300-6517 cell, (313) 331-2567 fax, dgolson@c2be.org, www. c2be.org