SBS, NYC Opportunity Release 10-Year Evaluation of Worker Cooperative Business Development Initiative, Showing NYC’s Model of Worker Ownership Is Helping New Yorkers Build[...]

FOR IMMEDIATE RELEASE
November 2, 2026

SBS, NYC OPPORTUNITY RELEASE 10-YEAR EVALUATION OF WORKER COOPERATIVE BUSINESS DEVELOPMENT INITIATIVE, SHOWING NYC'S MODEL OF WORKER OWNERSHIP IS HELPING NEW YORKERS BUILD BUSINESSES THEY OWN AND SHAPE

Independent Urban Institute Report Finds Initiative Has Helped Launch More Than 200 Worker Cooperatives, Hire More Than 1,100 Workers; Offers a Roadmap for the Next Decade

Report Finds that New York City is Home to Nearly a Quarter of Total Worker Cooperatives Nationally, and More Than Any Other City in the United States

NEW YORK - Today, New York City Department of Small Business Services (SBS) Commissioner Kenny Minaya and the New York City Mayor's Office for Economic Opportunity (NYC Opportunity) Executive Director Carson Hicks released a new report evaluating the Worker Cooperative Business Development Initiative (WCBDI), a New York City Council-funded and SBS-managed program that helps New Yorkers launch, convert to, and grow worker cooperatives, which are businesses run by their workers. Conducted by the Urban Institute in partnership with the NYC Opportunity, the report found that the WCBDI has helped launch 231 worker cooperatives with 1,169 employees across all five boroughs.

"For too long, much of traditional economic development has focused on attracting outside capital and hoping the benefits eventually trickle down to low-income New Yorkers, Black and Brown communities, and immigrant neighborhoods, with bosses and employees as different, often opposing entities. Worker cooperatives flip that paradigm on its head," said New York City Deputy Mayor for Economic Justice Julie Su. "What's compelling about worker co-ops and cooperative economics is that they start from a different premise: that workers and communities themselves can be owners, decisionmakers, and beneficiaries of their businesses and of economic development writ large. We know that co-ops can be a central tool for workers to be heard on the job, and our administration is excited to work with SBS, NYC Opportunity, and through our new Office of Worker Power to bring this model to even more businesses and their employees across the city."

"For the past 10 years, the Worker Cooperative Business Development Initiative has proven that when workers have a real stake in their business, neighborhoods are stronger for it," said SBS Commissioner Kenny Minaya. "From higher wages to greater stability and long-term growth, worker ownership is a proven, smart, community-rooted way to sustain a business. SBS is here to help, and we look forward to working with our community partners to bring these benefits to even more New Yorkers in more neighborhoods."

"Employee ownership is a powerful tool for building dignity and democracy in the workplace," said Executive Director of the Mayor's Office for Economic Opportunity Carson Hicks. "We commissioned this report to learn from the successes of the Worker Cooperative Business Development Initiative, identify opportunities for growth, and overall, to support the City's efforts to work towards a more just economy. We hope this report is a helpful tool for those across New York City and beyond advocating for workers and small businesses."

Since its establishment in 2015 through Local Law 22, WCBDI has funded a network of community-based organizations (CBOs) that provide education, technical assistance, legal support, and financing to entrepreneurs and existing business owners interested in employee ownership. Key findings include:

• WCBDI has worked with more than 1,600 businesses and organizations, including 310 worker cooperatives;
• The initiative has helped launch more than 200 worker cooperatives, which have collectively hired more than 1,100 workers;
• Worker cooperatives span all five boroughs and industries from professional services to cleaning, security, and retail;
• Of the 173 cooperatives that reported ownership information, about 43 percent are women- and/or minority-owned;
• 96 percent of responding worker-owners said they would recommend WCBDI services to another business.

Worker cooperatives give employees a direct voice in business decisions and a share in the value they create. Research cited in the report finds employee ownership is associated with higher wages, higher retention rates, greater retirement savings, and stronger job security. Pay is also more equally distributed in cooperatives, and workers who join one see a median wage increase of about $2 per hour relative to their previous job. In the evaluation survey, 44 percent of responding worker-owners reported higher wages than the year prior.

"When workers have ownership over their businesses, they hold a higher stake, which fosters a better and healthier working environment," said New York City Council Speaker Julie Menin. "The New York City Council has funded the Worker Cooperative Business Development Initiative since its founding, in collaboration with the New York City Department of Small Business Services, and is thrilled by the results thus far. The Council is extremely proud of this program's longevity, as it is a testament to the workers who have grown their businesses through hard work, entrepreneurship and strong leadership."

"When we talk about building an economy that works for every New Yorker, we must also talk about who has the opportunity to own a piece of it," said New York City Council Member and Chair of the Committee on Small Business Shanel Thomas-Henry. "Worker cooperatives are proving that economic growth and workforce empowerment can go hand in hand, giving employees a direct voice in the decisions that shape their businesses and a share in the wealth they help create. As Chair of the Committee on Small Business, I look forward to building on this success, expanding pathways to ownership, and ensuring New York City continues to lead the nation in creating an economy where workers are stakeholders in their own future."

Small business owners, entrepreneurs, and groups of workers can learn more and connect with a WCBDI provider online. The full report is available on the Urban Institute's website.

About the Department of Small Business Services (SBS)
SBS helps unlock economic potential and create economic security for all New Yorkers by connecting New Yorkers to good jobs, creating stronger businesses, and building vibrant neighborhoods across the five boroughs. For more information, visit nyc.gov/sbs, call 888-SBS-4NYC, and follow us on Facebook, X (Twitter), Instagram, and LinkedIn.