Feb 2022 update: Childcare Center Becomes Worker-Owned

'If I plan on being here for 10 years, why not be an owner?'

This month, we officially finished transitioning an existing business to worker-ownership!

Shine Nurture Center, a childcare center in the Mt. Airy neighborhood, joined a growing wave of businesses that are helping improve quality of life for workers and communities.

This is our 1st completed transition, and we're so thrilled! The process began when Shine’s team started our Business Legacy Fund program last year.

“For the workers, this transition has opened the door to building wealth for their families in a way that would never have been possible,” said Ellen Vera, our Director of Development and Co-op Organizing.

“And for the community, this succession has anchored an important child care center in the neighborhood long term.”

Shine's worker-owners celebrate with Ellen Vera, our Director of Development and Co-op Organizing, after the childcare center officially became worker-owned.

The Founder’s Story

Katie McGoron founded Shine in 2015 with the goal of creating a childcare center where children could play outside and eat healthy food.

Now that the business has a solid foundation, with a waiting list that typically includes 75 to 100 children, she decided to pursue a graduate degree. This month she finished the process of selling the business to 5 of her former employees.

McGoron wanted to give the employees an opportunity to make the business their own.

“It’s just such a great group,” she said of the current team. “I really wanted to take myself out of it, let them take Shine in the direction they see fit. I honestly think it will get better and better.”

“The responsibility of a business like that on one person’s shoulders is a lot," McGoron said. "When you can spread it over 5 shoulders, there’s more opportunity for growth.”

Mary Wilder, one of Shine's five worker-owners.

Beth Heeg (left) and Trisha Hay during a worker-owner meeting this month.

Shine’s Worker-Owners

Shine’s 5 worker-owners will now run and operate the childcare center by themselves. This business model, known as worker-ownership, has proven to be an effective way to create resilient jobs, generate wealth, and boost the local economy.

“I’ve definitely been celebrating all month and telling my kids, ‘Your Momma owns a business!’” said Mary Wilder, one of the new worker-owners, who has been employed by Shine for 2 years and has been in childcare for 12.

Before now, paperwork discouraged Mary from owning a childcare center. She changed her mind because Shine was “such a wonderful place to work.”

“If I plan on being here for 10 years, why not be an owner?” she said.

Other worker-owners at Shine cited the benefits of the worker-ownership model and the strength of the childcare center’s team.

Beth Heeg, who has been with Shine for 1 year, was attracted to the worker-ownership model because of the emphasis on “wealth redistribution."

Trisha Hay, who has worked at Shine for 3 years, said she decided to become a worker-owner because she felt she was never going to find another place like Shine.

“I was all-in immediately,” she said. “I feel like we all communicate and work really well together.”

Worker-Ownership Benefits

Why embrace the worker-owned business model? Worker-owned businesses are democratically run, giving workers a say. In addition, according to research, they have clear worker, company, and community benefits compared to traditional companies:

  1. Employee advantage: Employees at worker-owned businesses have better wages and benefits. 

  2. Company advantage: Worker-owned companies are more profitable and productive.

  3. Community advantage: Worker-owned businesses are less likely to close, relocate, or lay off workers during downturns.

“We are really excited that Shine has decided to transition to a worker-owned co-op,” said Vera of Co-op Cincy. “Selling to the workers was such a good option for the owner because she wanted to preserve her legacy and keep the business in the hands of the people who had helped her build it.” 

“It also allowed the owner to get a fair market price for the value she had built up in her business over the years, which is especially important in an industry such as childcare that is not known for having a lot of outside buyers that are typically interested in taking over.” 

Co-op Cincy Supports Transitions

To create a fairer and more resilient economy, Co-op Cincy’s Business Legacy Fund helps exiting or retiring business owners sell their companies to workers. The Fund, which supported Shine’s transition, helps save jobs and maintain legacies. Financing is accompanied by technical assistance.

McGoron said Co-op Cincy offered an essential “support system” for Shine’s transition. “We could not have figured out how to do this without the help of Co-op Cincy.”

Co-op Cincy has recruited transition managers in Cincinnati and is actively conducting outreach to local businesses. In addition, Co-op Cincy partners with organizations across the state and country to promote worker-ownership.

other Co-op Cincy Happenings

Applications Now Open for Cooperative Management Course

At a time when our world confronts climate crisis, rising inequality, and withering institutions, we have to rethink the way we do business, including how we organize companies. In our Cooperative Management Certificate course, we explore structures and practices that can help us meet the moment. Participants receive a certificate from the Xavier Leadership Center.

The upcoming course runs April through June, meeting once weekly for 12 weeks. The cost is $750, and applications are due March 20. To apply, please complete a short application form.

Questionnaire for 2022 Events

This year, we're planning a number of co-op tours and educational events. Interested? Pease complete this short questionnaire to indicate your preferences.

Planned co-op tours:

  • Wed, Mar 2 from 9 am-noon

  • Fri, Apr 8 from 12-3 pm

  • Fri, May 13 from 9 am-noon

  • Fri, Jun 10 from 12-3 pm

  • Fri, July 8 from 9 am-noon

  • Sat, Aug 13 from 4-6 pm

Planned educational events:

  • Tue, Mar 1 from 6-8 pm: Queen Mother's Market launch

  • Thu, Nov 10 from 530-730 pm: Co-op Cincy Annual Event

Board Retreat

At the end of January, we had an energizing virtual retreat with our Board of Directors! During the retreat, we discussed how to refine our goals and strengthen our impact in the coming years.

New Symposium Recordings

Via social media, we've been sharing recordings of sessions from our 2021 Union Co-op Symposium, which drew more than 200 people from around the world.

We recently posted the following sessions to our YouTube channel:

We'll be sharing more recordings during the coming weeks. The 2-day hybrid event was inspiring and brought together social entrepreneurs, labor organizers, co-op workers, community development practitioners, and others with a vested interest in equitable economic development.

Speakers discuss combining financing and meaningful co-op development during Financing Transformation, a session from the virtual day of our Symposium.

Co-op Updates

Sustainergy, which is expanding into the solar panel installation market, visited employee-owned Technicians For Sustainability in Tucson, Arizona, to receive training on best practices. Flequer Vera and Lewis Connell shadowed workers during their visit.

Sustainergy's Flequer Vera poses with employee-owners of Technicians for Sustainability in Tucson, Arizona.

Sustainergy is currently hiring for 2 new positions:

Queen Mother's Market, one of our newest co-ops, is having a launch event at Esoteric Brewing from 6-8 pm on March 1! See the Facebook event for more info. Queen Mother’s Market has created a regional buyer's club and is working toward starting a co-op grocery store in the Walnut Hills neighborhood of Cincinnati.

Queen City Commons presented at the Emergent Composter Competition of the U.S. Composting Council COMPOST 2022 Conference in Austin, Texas. They also partnered with the city of Cincinnati and other organizations for the Cincinnati Community Composting Collaborative, which aims to increase neighborhood-level composting infrastructure and community drop-off sites.

Our Harvest received a grant from the City of Cincinnati's Urban Agriculture Program in support of agriculture efforts within the city limits.

In the News

Congrats to Ashlee Young on being honored as one of 7 Black leaders making a difference in Cincinnati! We are grateful to have had Ashlee as one of the judges for our recent Power in Numbers pitch competition.

Upcoming Events

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