CLARIFICATION: While worker-owned cooperatives are seen as one of many solutions to the expected wave of small-business owners retiring, organizers with the May Day Cafe initiative note that aging ownership is not related to their transition. (10:00 a.m. CST, August 14th, 2024)
As small-business owners decide to retire or move on, some are helping to fuel the trend of worker-owned cooperatives in Minnesota and elsewhere.
These operations are described as businesses owned equally and self-managed by participating employees. A 2021 report found a 30% increase in worker-owned cooperatives in the United States, with nearly a dozen in the Minneapolis/St. Paul area.
When staffers at the May Day Cafe in South Minneapolis heard of it being put up for sale, barista Mira Klein said they were energized to launch an effort to buy it themselves and keep this community fixture open.
"It felt really important that the cafe stay in community hands," she said, "and continue existing as a place that people could gather, that they could eat together, access affordable food."
Klein said she's interested in how this affects workers by having a greater say in decision-making. With the help of a new crowdfunding campaign, the workers hope to close on the sale later this year. The same report tracking this movement also touches on some of the challenges these cooperatives run into, and providing health insurance topped the list.
According to the group Project Equity, 49% of businesses across Minnesota are owned by people age 55 and older. As the "silver tsunami" plays out, Klein, who stresses that aging ownership is not a factor in May Day Cafe's planned sale, said they want the chance to demonstrate that this approach can be a viable response to broader transitions in the small-business landscape.
"Showing that a worker cooperative model can be successful in a place like May Day, that could potentially have some pretty far reach," she said, "and that's something that we're really excited about."
The Project Equity report said nationally, one in three business owners age 50 and older are having a hard time finding a buyer. The authors say handing the keys over to willing staff members can lead to increased longevity of the business, better pay for workers, and increased local spending in the community.
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The dismantling of the 30-year-old AmeriCorps national service program by the Department of Government Efficiency will have significant effects in New Mexico.
Last year, AmeriCorps recruited more than 4,500 participants in the state to help meet local needs and strengthen communities. Program grants are administered by the Serve New Mexico Commission, working under the Department of Workforce Solutions.
Kristin Hsueh, executive director of the commission, said funding was eliminated for a planning grant and six of 10 operational programs, leaving only four still functioning.
"These program were offering services to the communities, everything from tutoring to after-school programming, mentorship, trail restoration," Hsueh outlined. "It's a significant cut, it's almost about two-thirds of our programs."
New Mexico has joined 24 states and the District of Columbia in a lawsuit suing over the Trump administration's cuts. The state's Attorney General said the action will hurt students, families and underserved communities. In New Mexico, a fourth of all AmeriCorps workers identify as Hispanic or Latino, the highest percentage in the nation.
Hsueh pointed out at least 84 AmeriCorps members in New Mexico were affected immediately, and 100 who were expected to participate this summer have been notified their positions have been defunded. She noted members and senior volunteers have previously served at more than 300 locations across the state.
"They are gaining a lot of experience," Hsueh observed. "They are serving something that's greater than themselves, which is really what AmeriCorps is all about, dedicating a portion of your life to make sure that you are improving the lives of others."
Initially known as Volunteers in Service to America or VISTA, AmeriCorps was created by President Lyndon Johnson in 1965 and renamed under President Bill Clinton. Nationwide, more than 75,000 people work in service each year, with land trusts, schools, public agencies and community and faith-based groups. Funding made up less than 1% of the federal budget.
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As the Appalachian Trail turns 100, conservation groups are sounding alarms over federal funding freezes and staff cuts.
The trail runs through the broader Appalachian region, including parts of southern Ohio and is a popular destination for thousands of Ohio hikers. Conservation groups warned recent layoffs at the National Park Service and the U.S. Forest Service could slow maintenance and repair work on the 2,200-mile trail.
Hawk Metheny, vice president of trail management for the Appalachian Trail Conservancy, said Federal funds remain tied up in Congress, leaving local volunteers to carry the weight.
"We're carrying on. We've been here 100 years and we'll endure through this," Metheny emphasized. "It is the people's trail, the citizens' trail, so it's an all-hands effort."
More than 3 million people visit the Appalachian Trail each year. In Ohio, the outdoor recreation economy supports more than 125,000 jobs and brings in $11.8 billion annually, according to the Outdoor Industry Association.
Metheny noted recent extreme weather, such as flooding from Hurricane Helene, has damaged hundreds of trail miles. Volunteers have stepped in to relocate or reinforce affected areas but long-term stability requires federal support for land conservation and public access.
"It's an important resource for scenic values, recreational values, wildlife habitat, biodiversity protection," Metheny outlined. "The AT provides all those values across the entirety of the Appalachians from Georgia to Maine."
Several Ohio-based groups, including the Buckeye Trail Association, said public lands and trail systems provide vital health and tourism benefits. Events along the Appalachian Trail this summer aim to raise awareness and celebrate a century of stewardship and public access.
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Results of a new survey of nearly 900 small business owners across the country show they are concerned about an uncertain economy, including the owners of small mom and pop operations in Nebraska.
The survey, conducted by Small Business for America's Future, shows that nearly 70% of small business owners think the Trump administration fell short on economic leadership during its first 100 days.
They cited tariffs as a key factor in creating instability.
Gladys Harrison, owner of Big Mama's Kitchen and Catering in Omaha, said the tariffs will affect the cost of the imported seasonings she uses for her family's oven-fried chicken recipe.
"They're telling me," said Harrison, "that they could see a 25% to 145% increase with these tariffs in what they're going to charge me for my seasonings."
The Trump administration has said it is imposing tariffs in an effort to create more U.S.-based jobs and improve the domestic economy.
Harrison said she is thinking of ways to avoid closing her doors or passing the price increases on to her loyal customers, many of whom have been eating Big Mama's fried chicken for generations.
"And we don't want to have our food so expensive," said Harrison, "that the people who live and work in our community can't come and spend their money with us."
Harrison said higher costs will also hinder her ability to be involved in the community, a tradition she said her mother and grandmother taught her was critical to any small, family-owned business.
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