Southeast Center for Cooperative Development (SEC4CD) Market Research Report

Background

Mission and Vision

The Southeast Center for Cooperative Development (SEC4CD) is a Tennessee-based 501(c)(3) nonprofit organization dedicated to increasing economic opportunities and benefits by creating and strengthening cooperative businesses and networks that foster an equitable economy. The organization prioritizes developing the power and capacity of low-income, minority, and underserved areas of Metro Nashville and beyond. Its vision is the elimination of racial and community disparities in employment, wealth, and income within an economy that sustains community and the environment.

Primary Area of Focus and Industry Significance

SEC4CD focuses on promoting worker-owned cooperatives and cooperative enterprises, aiming to empower communities through shared ownership and democratic control. By supporting the development of cooperatives, SEC4CD addresses economic disparities and fosters community wealth, contributing to a more equitable economy in the Southeast region.

Key Strategic Focus

Core Objectives

• Cooperative Education and Training: Providing comprehensive education and training programs to individuals and groups interested in cooperative development.

• Business and Housing Development: Supporting the creation and expansion of worker cooperatives and cooperative housing projects.

• Conversion Assistance: Assisting traditional businesses in transitioning to employee-owned enterprises.

Specific Areas of Specialization

• Worker Cooperatives: Focusing on businesses owned and democratically controlled by their employees.

• Affordable Housing: Developing cooperative housing models to ensure long-term affordability and community control.

Key Technologies Utilized

While specific technologies are not detailed, SEC4CD employs various tools and methodologies to support cooperative development, including business planning frameworks, financial modeling, and governance training.

Primary Markets or Conditions Targeted

SEC4CD primarily targets low-income, minority, and underserved communities in Metro Nashville and the broader Southeast region, aiming to address economic disparities and promote community wealth through cooperative models.

Financials and Funding

Funding History

SEC4CD has received funding from various sources, including individual contributions, foundation and corporation donations, and government grants. In the fiscal year ending December 31, 2023, the organization reported total revenue of $494,987 and expenses of $313,119, resulting in a net income of $181,868.

Recent Funding Rounds

In October 2023, SEC4CD was awarded $175,000 from the USDA Socially Disadvantaged Groups Grant (SDGG) program. These funds are designated to support cooperative development in rural and predominantly African American communities in West Tennessee, including Mason, Brownsville, and Stanton. The grant will facilitate the offering of cooperative development classes and technical services in these areas.

Notable Investors

Specific details about individual investors are not publicly disclosed. However, SEC4CD has received support from various foundations, corporations, and government entities committed to promoting economic development and cooperative enterprises.

Intended Utilization of Capital

The funds from the USDA SDGG grant will be utilized to build relationships with rural communities, offer cooperative development classes, and provide technical assistance to support the establishment and growth of worker-owned cooperatives in the targeted areas.

Pipeline Development

Key Pipeline Candidates

SEC4CD is actively working with multiple groups across various sectors, including construction, trucking, IT, and food service, to explore the feasibility of establishing worker-owned cooperatives. The organization is also supporting traditional businesses in their transition to employee ownership.

Stages of Development

The organization is engaged in the initial stages of cooperative development, including education, training, and technical assistance, to facilitate the formation and growth of worker-owned businesses.

Target Conditions

SEC4CD focuses on addressing economic disparities and promoting community wealth in low-income, minority, and underserved communities through cooperative models.

Relevant Timelines for Anticipated Milestones

Specific timelines for the development of individual cooperatives are not publicly disclosed. However, SEC4CD's programs, such as the Co-op Academy, are structured over several months to provide comprehensive support to aspiring cooperative entrepreneurs.

Technological Platform and Innovation

Proprietary Technologies

While SEC4CD does not publicly disclose proprietary technologies, the organization utilizes various tools and methodologies to support cooperative development, including business planning frameworks, financial modeling, and governance training.

Significant Scientific Methods

SEC4CD employs business planning frameworks, financial modeling, and governance training to support the development and sustainability of worker-owned cooperatives.

Leadership Team

Key Executive Profiles

• Robert Overton: Co-Director of SEC4CD, with a background in cooperative development and community organizing.

• Rosemarie Henkel-Rieger: Co-Director of SEC4CD, specializing in cooperative education and training.

Key Contributions or Roles Within the Company

Both co-directors play pivotal roles in leading SEC4CD's initiatives, including cooperative education, training programs, and technical assistance for cooperative development.

Competitor Profile

Market Insights and Dynamics

The cooperative development sector is characterized by a growing interest in worker-owned businesses and cooperative models as means to address economic disparities and promote community wealth. Organizations like SEC4CD play a crucial role in facilitating the establishment and growth of cooperatives, particularly in underserved communities.

Competitor Analysis

While specific competitors are not detailed, other organizations in the cooperative development sector include:

• ACDI/VOCA: An international development nonprofit organization that fosters broad-based economic growth and community development.

• Capital Impact Partners: A nonprofit community development financial institution providing credit and financial services to underserved markets and populations in the U.S.

• CooperationWorks!: A network of organizations promoting rural development through the formation of cooperatives in the U.S.

Strategic Collaborations and Partnerships

SEC4CD collaborates with various organizations to enhance its impact, including:

• Wendland-Cook Program in Religion and Justice at Vanderbilt Divinity School: Focuses on the relationship between religion and economic and ecological justice.

• Turner Family Center for Social Ventures at Vanderbilt Owen School of Management: A graduate student-led organization committed to alleviating poverty through market-driven forces and enterprise.

• Center for Entrepreneurship and Economic Development at Tennessee State University: Coordinates entrepreneurship efforts and provides support to the community.

• Seed Commons: A national network of locally rooted, non-extractive loan funds supporting local cooperative businesses.

• Turner Family Community Enterprise Clinic at Vanderbilt Law School: Allows students to represent small businesses and nonprofit organizations in transactional matters.

• Cincinnati Union Cooperative Initiative (CUCI): Nurtures a resilient network of worker-owned businesses in Greater Cincinnati.

• US Federation of Worker Cooperatives: Represents over 200 business and organizational members supporting worker cooperatives.

• Nashville Area Hispanic Chamber of Commerce: Provides leadership and support for Hispanic businesses and individuals.

Operational Insights

SEC4CD differentiates itself through its focus on cooperative development in underserved communities, providing tailored education, training, and technical assistance to foster worker-owned businesses and cooperative housing projects. This community-centric approach positions SEC4CD as a key player in promoting economic equity in the Southeast region.

Strategic Opportunities and Future Directions

Strategic Roadmap

SEC4CD aims to expand its reach by:

• Increasing Program Offerings: Developing new programs to support cooperative development in various sectors.

• Strengthening Partnerships: Building collaborations with additional organizations to enhance resources and support for cooperative enterprises.

• Advocacy and Public Education: Raising awareness about the benefits of cooperative models to attract more participants and supporters.

Future Business Directions

The organization plans to:

• Expand Geographical Reach: Extend services to more communities within the Southeast and potentially nationwide.

• Diversify Funding Sources: Seek additional funding opportunities to support program development and operations.