Grassroots Economic Organizing

The Arizmendi Association of Cooperatives' development effort began in the 1990s and has started five new bakery cooperatives creating around 100 new democratic jobs. The businesses have generally been successful financially after a short startup period and two of them are now over ten years old, with very low worker turnover, high quality reputation, and close community connections. The development method emphasizes attaining a baseline of business success as a foundation from which other social goals may be pursued. Inspirations for the model came from two sources: the Mondragon cooperatives, which gained financial security from their networked business development and continued technical assistance, and the American franchise system, which benefits from a wide market presence and shared administrative support. Because the workers in the stores govern the central administration, the analogy of an "upside-down franchise" has sometimes been used.