Community Wealth Building Forms: What They Are and How to Use Them at the Local Level

Abstract

As income and wealth inequality hit historic highs, community development leaders are searching for ways to create good jobs and revitalize struggling urban communities. The search has led an increasing number to focus on approaches that involve broad-based ownership models as key tools for creating community wealth. There are many models of enterprises that have a fundamental purpose of benefiting workers and communities. These include employee stock ownership plan (ESOP)–owned companies, cooperatives, community development corporations, community development financial institutions (CDFIs), municipally owned enterprises, social enterprises, B corporations, and others. This paper provides an overview of these different community-based forms of business ownership, how to use them effectively, and what benefits the different forms can provide. Additionally, the paper highlights novel ways to combine these forms into comprehensive community-building strategies as with Market Creek Plaza in San Diego and the ...