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Categories
Transformative Ideas

Co-ops are the past and the next best thing. So why don’t we join the movement?

Photo: Sergey Galyonkin. Creative Commons BY-SA (cropped)

Imagine this: an eco-just world that enables all genders to flourish, with their basic needs met for healthy food, water, shelter, safety, agency, belonging, human touch, respect, and personal growth.

I know many others, not just activists, think such a world is possible. Increasingly, tech gurus, CEOs, startup founders, mainstream politicians, and investors have joined the choir. I am a person whose hope requires continuous feeding so I eagerly read and highlight their thought leadership articles and better-future “unity now” books. I was floored yesterday to read this article, “Unless It Changes, Capitalism Will Starve Humanity By 2050,” in Forbes Magazine, the voice of big business in the United States.

Could it be that the tide is turning this time for real, with more people on the side of tackling the dysfunctions of patriarchy and capitalism? One thing I have noticed as a measure of hard evidence is that social entrepreneurs (who operate at the intersection of philanthropy and business) are getting a warmer welcome in business incubator and accelerator programs. In the past, they were often given a pat on the head (myself included) for cuteness and a one-way ticket to the back of the local community centre, and a desk beside the toy box.

I have spent time by the toy box (and in the toy box) as a social entrepreneur for more than 15 years now, so I am encouraged by this discourse shift, which is crucial to right a world marred by climate change and war-driven human migration, mass extinctions, gross income inequalities, an unhelpful global political shift to the right—need I go on?

But the stark reality is, despite all the studies, the rise of B Corp certifications, warm welcomes, and government-sponsored social finance funds, a quick look at the facts and figures tells us that we still really have no idea how to help social entrepreneurs grow impactful, solutionary enterprises while also sustaining themselves, their families, employees, and the communities they live in. As a result, social enterprises (in Canada at least) often remain small (fewer than three people) and rely heavily on life support dribbling in from donations, odd-ball grants, and micro-finance scale investments. It’s not unusual to see celebrated social entrepreneurs holding down a traditional day job while trying to grow their company just to pay fair salaries, and themselves, for years.

Social enterprises that provide services or education versus a product have an even tougher time. It’s easier (though slightly) to find financing when you involve the purchase of hard assets like a building (Centre for Social Innovation) or pre-sell a physical product (Lucky Iron Fish). In many mainstream, mixed incubator and accelerator environments, social entrepreneurs are still not taken seriously, and routinely feel like outliers that need to go elsewhere for relevant support.

We need social entrepreneurs to succeed more than ever. So where are we going wrong?

Time to Embrace the Old—And Make It New Again

Systemic blind spots are part of the problem. Social enterprises don’t fit neatly into the for-profit or non-profit box. As a result, the majority of today’s accelerators and incubator leaders and progamming folk do not have the skills or experience required to help social entrepreneurs consider their full range of options when it comes to structuring, designing and growing their new enterprise.

One of the most glaring omissions? Our startup ecosystem’s ability to support the creation and development of co-operatives, which is one of the most successful, evidence-based ways to create a large, profitable social enterprise that serves people and the planet. Typically, programs promote just two binary options: set up as a non-profit or for-profit. Sometimes, advisors actually recommend both so you can raise money and qualify for foundation grants. For a new entrepreneur, figuring out one legal form and paying for tax filings is already daunting enough, let alone administrating two legal forms, paying for two tax filings, plus recruiting and serving two boards to boot.

Few point out that there are other ways to structure and finance a social enterprise, like, for example, creating a for-profit co-operative.

Co-operatives have been around since 1862 (corporations have been around since the 1780s). Part of the problem is that our thinking about co-operatives, the world’s original and oldest social enterprise legal form, lags far behind the times. When we hear the term we imagine small quaint farms and food co-ops, newcomer credit unions, or city housing. Yet, co-operatives all around the world—and in Canada—are thriving, growing, and solving social and environmental issues, all while not exploiting people or the planet to do so.

Today, there are more than 9,000 co-operatives in Canada and 750,000 worldwide. According to the International Co-operative Alliance, the top 300 co-operatives globally report US$2.1 trillion in revenues. In Canada, co-operatives generate $54 billion in GDP (compared to the $9.1 billion created by the Canadian tech sector) and paid $12 billion in taxes and created jobs at nearly five times the rate of the overall economy. Research shows that co-operatives are twice as likely to survive than traditional businesses, often because the governance structure provides a strong pipeline for enterprise succession. Research also shows that 76 percent of consumers are more likely to buy from co-operatives.

Interestingly, there’s a strong feminist principle embedded in the very structure of co-operatives, which requires a wide variety of stakeholders be represented at the board table.

Modern, new co-operatives are springing up in an array of surprising sectors: green energy, breweries, co-working spacesretailnetworks, wine, arts facilities, and media. Stocksy, a platform-based co-operative, and a favourite of ours (we buy a lot of photos from them) puts the power back in the hands of its 1,000-plus shareholder artists, ensuring a fair distribution of profits, encouraging collaboration, and ethical business practices.

Oh, and sex! Come As You Are claims to be the world’s only worker-owned sex shop. The online co-operative offers “sex-positive” products, advice, and workshops as well as education and outreach to the community.

The principle related to sharing the wealth may well be what inspires people working in co-operatives to do well, for co-ops can and do make large profits, such as Ocean Spray, a global enterprise that generates $2 billion a year to support its 700 farmer members, processing facilities, and 2,000 employees. Arizmendi Bakery has spawned some five sister co-ops in California.

Why Ignore Successful Models?

If co-operatives are so great at growing, creating jobs, long-term financial stability, plus wealth creation and fair wealth distribution, why don’t innovation policymakers, startup incubators, and accelerator programs encourage their creation and development?

Well, it’s simple. Co-operatives do not serve traditional investor interests, and traditional investor interests overwhelmingly dominate and drive entrepreneurship incubator and accelerator programming.

Why don’t traditional investors like co-operatives?

Co-operatives are bound to reinvest or distribute profits to workers and/or member-owners versus prioritizing a small preferred share-class group of outside, privileged investors. Co-operatives are also nearly impossible to sell or flip for a quick investor return—or take over management if investors are suddenly dissatisfied with the social purpose’s impact on the rate of growth. Co-operatives are virtually mission-drift-proof, meaning the social mission today won’t fly out the window tomorrow because the mission is legislatively backed. In addition, members—each with one vote, regardless of the size of the stake in the co-operative—control that mission.

Essentially, co-operatives combine the best of the for-profit and non-profit world. And they might just be what we need more of today. They are built to reverse wealth inequality—not exacerbate it. Their seven principles require members to support the health of the planet and the well-being of their communities and all people.

There is now one accelerator in the US that’s focused on helping founders start co-operatives, the Boston-based Start.Coop, a partner in the Fledge Accelerator network that includes Tech Stars, Bainbridge Institute, and Seattle’s Impact Hub. But sadly, there is no such equivalent in Canada. We know. Because we looked. And we had good reason to do so.

The Journey to Becoming Canada’s First Womxn-Led Feminist Media Co-op

At our last advisory board meeting, the LiisBeth Media team and I decided to structure LiisBeth as a multi-stakeholder co-operative to support our mission. We believe this structure will enable us to create impact, achieve financial sustainability, and enable the enterprise to flourish for a very long time—or at least as long as it takes to achieve gender equality globally. With no local government-funded incubator or accelerator program around, we are left with having to navigate the journey on our own.

To learn more about co-operatives, we joined The Canadian Community Economic Development Network (CCEDNet). It offers a wealth of information on co-operatives and referred us to several experts.

For implementation expertise, we went online to find a law firm that had experience in the co-operatives space to help us do this right. Luckily, we came across Iler Campbell LLP, a “law firm for those who want to make the world better” (it also offers affordable rates).

To help us with important details, we have enlisted several co-op experts who have experience with discerning and understanding implications of membership categories, plus how to market co-op shares, lead and govern in a transparent, inclusive way.  Leading a cooperative requires sophisticated feminist forward leadership and management skills.

These are complex challenges that won’t be easy to solve but we’re excited to tackle them. In the coming months, we’ll share stories about what we learned and let you know who to go to if you, too, are interested in exploring a co-operative legal form for your social enterprise.

These resources and knowledge exist, most likely, outside of your local startup ecosystem. It’s there. You just have to find it.


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https://www.liisbeth.com/2019/09/24/a-better-way-to-be-better/

Categories
Activism & Action Feminist Practices

Homelessness: There’s An App For That

CG Chen, founder of Ample Labs (Photo: David Dines)

Working as a user experience designer at a tech company, CG Chen had done co-design workshops before, but this one was different. Around a dozen young people crowded into a small room at Sherbourne Health Centre in downtown Toronto, to share their experiences with homelessness. They appeared to be  between 16 and 30, identified as LGBTQ2IA, and participated in the health centre’s Supporting Our Youth (SOY) program that promotes wellness for at-risk youth. That day, they didn’t come seeking support, but to lend a hand—and to share their experiences so that Chen’s non-profit startup, Ample Labs, could improve an app to access services for the homeless.

Creating a trusting atmosphere for the youth living on the street took conscious effort. Chen met with SOY staff multiple times in advance to ensure the workshop was a safe space, anti-racist, and anti-oppressive. Then Chen got creative, handing out writing and craft supplies to those gathered around a large table, so they could express themselves authentically and on their terms.

They came from different backgrounds—some had lived in Canada for years, others had recently arrived as refugees—but they all shared a key concern when looking for a place to spend the night: safety. The participants told horror stories of ending up in shelters that weren’t LGBTQ2A friendly—and experiencing violence and trauma as a result.

During this co-design session and many others, Chen and her team of volunteers at Amble Labs also discovered that many initially facing homelessness turned to Google for help as they were often too ashamed to seek out in-person resources. But the Google results that came up were not very helpful. That was one of the main frustrations people in the sessions expressed—service agencies don’t actually involve or listen to the concerns of individuals experiencing homelessness.

Says Chen of Ample Labs’ venture to change that: “We bring the people that we build this product for into our process as much as possible so they’re part of building the solution with us.”

The result? Chen and her team learned that Toronto’s homeless population has high concentrations of people identifying as refugees, BIPOC (Black, Indigenous, and people of colour), and/or LGBTQI2A (particularly youth). So Ample Labs decided to focus on creating solutions for individuals between the ages of 16 and 35 who are at risk of or experiencing homelessness and come from diverse identities and situations. One of their first creations was ChalmersBot, a free web-based chat-bot that provides location-based information. You enter what you need—a warm meal, clothing, shelter—and ChalmersBot suggests a nearby resource. After what they learned at the SOY workshop, Chen and her team added a filter to ChalmersBot to identify resources that are LGBTQI2A friendly.

Chen describes working intentionally and directly in a co-design fashion with the homeless community as a feminist approach. The goal is to understand what the homeless need and empower them to contribute to solutions, so services created are actually used by the community. “It’s easy to identify as a feminist organization because with the app and in everything we do, we are trying to promote equality in this community that often times struggles with inequality.”

Could a Sandwich Start a Revolution?

Chen, now 27, can trace the start of her journey to a sandwich. While studying graphic design at the Ontario College of Art and Design (OCAD), she had to pass by people living on the streets of downtown Toronto—and eventually found she could no longer look away. So Chen gathered some friends and started distributing food to the homeless.

A sandwich often led to conversation—and a new perspective. “I think a lot of us really wanted to understand how people ended up there, what they are like. Who I thought the homeless were was turned upside down because I met previous entrepreneurs and really wealthy people who, through a series of unfortunate events, ended up on the streets.” For instance, a highly educated doctor who wound up homeless after going through a rough divorce.

Chen started seeing homelessness in a new light—a difficult situation that can happen to people of all backgrounds. That realization hit home in 2019 when Chen’s own mother experienced homelessness after a surgery made it difficult for her to find work. “If it was your family, how would you look at things? How would you treat that person you see on the street if she was your mom?” Chen asked in a blog post.

For her undergrad thesis, Chen explored how to use design and technology to help the homeless, redesigning a list of City of Toronto resources into a user-friendly website. She took a tech job after graduation, but a trip to Los Angeles reignited her passion for helping people struggling with homelessness. During a visit to LA’s notorious Skid Row, an area of downtown with a high concentration of homeless individuals, she met a woman teaching computer skills, such as how to craft a resume, to people on the street. What struck Chen? While residents of Skid Row lacked a permanent home, they often had cellphones or access to technology. (In a survey of 421 homeless individuals, 94 percent of respondents said they owned a phone and used it as an essential tool for communication.)

That trip helped Chen envision an opportunity to combine her skills in tech and her passion for helping the homeless. As she had done with her sandwich runs, Chen gathered a group of friends to reach out to the homeless community in Toronto and learn more about their needs.

Simon Bunyi was part of the Ample Labs team when he found himself in the same situation as people they were trying to help. He was laid off from a Fortune 500 company and later evicted from his apartment; this is statistically the most common reason individuals end up homeless in Toronto. Those were his “darkest days,” he says, looking back. “It made me think more about how I interact with people.”

Bunyi had been living in an area of Toronto with a high concentration of people living on the street. He came to realize that the only thing separating himself from them was a regular paycheque. When that disappeared, Bunyi reached out to Chen and Ample Labs to help him navigate the complex network of websites and resources for help. They thought it would be simpler if there were an app for this. And that was the beginning of ChalmersBot. (Watch the full story below.)

So, More Apps for That?

Chen never intended Ample Labs to be more than a side project, but after the beta launch in November 2018, the team of 20 to 30 volunteers realized the service had tremendous potential to help the estimated 235,000 Canadians who will experience homelessness. In the past, that population largely comprised of older, single men, but according to the study, Canada has seen a rise of women and youth ending up on the street. With its ability to tailor resources to specific demographics, ChalmersBot generated attention. Ample Labs raised money from a crowdfunding campaign, grants and corporate sponsors (including TD, Google, and Twitter) and found a home in Ryerson University’s Social Venture Zone. The goal is to generate additional, sustaining revenue selling ChalmersBot services to cities. Barrie, Ont., was the first to buy in. Numerous other cities in Canada and the US have shown interest.

Ample Labs now has 8,000 unique users in Toronto and multiple contractors, prompting Chen to quit her job as a UX designer and become Ample Labs’ first full-time employee. She’s recently hired a second employee and plans to continue expanding the team in 2020. Though the non-profit is experiencing exciting and rapid growth, the culture and core values of Ample Labs remain the same.

“Internally, we’ve built a culture of always learning from each other and making sure it’s diverse voices that are teaching the rest of us,” says Chen. “We want to build something with people, not for people.”


Creating researched and inspirational content to support and advocate for feminist changemaking takes hundreds of hours each month. If you find value and nourishment here, please consider becoming a donor subscriber or patron at a level of your choosing. Priced between a cup of coffee or one take out salad per month.

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You can also contribute to our “Sustainability Fund” or an open donation in any amount.

 


 

 

 

 

This article was made possible thanks to the generosity of Startup Toronto.


Related Reading

https://www.liisbeth.com/2019/03/09/move-over-girlboss-its-the-feministboss-era/

https://www.liisbeth.com/2019/04/26/where-are-the-women-in-canadas-women-in-tech-venture-fund/

Categories
Allied Arts & Media Feminist Practices

The Art of Change

Feminist Art Conference 2014, OCAD University, Toronto

The process for art-making can boil down to something like this: Make art, get feedback, make art better. Sounds easy, right? It wasn’t for Ilene Sova. In 2012, the Toronto artist-activist was painting portraits of women who had disappeared in Ontario for her Missing Women Project. She wanted to talk about the hard issues she was tackling in her art—patriarchy, misogyny, systemic racism, violence against women—but there wasn’t a group of fellow feminist artists to turn to, at least not a formally organized one.

Sova put out a call for submissions and volunteers and got a rush of responses, including from people in Kenya and Colombia. On International Women’s Day in March 2013, she launched the first Feminist Art Conference (FAC), a multidisciplinary event that brought together artists, activists, and academics of different gender identities, ages, nationalities, and feminisms so they could show their work and use it to spark discussions around important feminist issues.

The conference sold out in two days, attracting 120 participating artists and 150 attendees. “Clearly what I had been missing in my own social practice was something that others in our creative communities were also yearning for,” says Sova. FAC’s subsequent annual conferences have been equally as successful, especially the 2017 event that happened the day of the Women’s March.

‘Ashaba’; No human can look at her directly by Karen White explores unseen oppression. By covering her face while staring straight at the viewer, the artist makes us feel both complicit and engaged in the exploration of colonialism and imperialism.

 Art That Moves

Feminists have been long fed up with the fact that women’s art continues to be undervalued, underrepresented, and often completely ignored. The feminist activist group Guerrilla Girls have been calling out the gender and racial inequality in the arts since 1985 when they picketed the Museum of Modern Art in New York for featuring only 13 women out of 169 artists.

That inequality persists today. Female visual artists earn just 65 percent of the annual income of their male peers, according to a 2018 report by the Ontario Arts Council. Since 2013, women have only accounted for 36 percent of solo exhibitions at Canadian galleries; it’s dramatically less for non-white women. Gender disparity also exists in the performing arts space, which FAC attempts to redress in their events.

FAC has heard all the reasons why feminist work is often shut out of commercial spaces and public institutions. It’s not mainstream or universal (i.e., not male). It’s too angry and personal (i.e., too female) to be good. No one (i.e., men) will buy it. FAC’s response? Carve out spaces to showcase intersectional work that might be deemed taboo elsewhere, for instance, on topics such as rape culture, transphobia, racism, ableism, domestic violence, missing and murdered Indigenous women and girls, media representation, cultural appropriation, environmental degradation, and Islamophobia. Nothing is off limits. FAC featured a graphic novel about trauma and abuse, Girl in the Attic by Hyein Lee, which contains such difficult subject matter that FAC added its first-ever content warning.

Girl in the Attic by Hyein Lee explores themes of trauma and abuse by drawing the viewer into the narrative.

According to Sova, people attending FAC events say they are really touched because the art reflects current social issues that affect them. “This creates a very impactful experience for those viewing art or experiencing a performance,” says Sova.

After hosting four conferences, FAC changed its name to the Feminist Art Collective to reflect its expanding mission. It now hosts artist residencies on the Toronto Islands. And its next event—the Feminist Art Festival, March 5 to 7, 2020, at OCAD University—will include a reception, conference, performances, film screening, makers’ market, and a two-week exhibition featuring the work of visual artists.

The Art of the Action

Since day one, FAC has operated as a grassroots organization run entirely by volunteers. Currently, the core team consists of 30 people from a variety of backgrounds and experiences.

Carissa Ainslie, who took on the coordinator role after Ilene Sova became the Ada Slaight Chair of Contemporary Painting and Drawing at OCAD University, describes their current organizational structure as non-hierarchical. “We try to be intersectional in terms of who we’re including in the conversations that we’re having,” says Ainslie. “Ensuring that everyone has a voice at the table is really important regardless of what their experiences have been.”

FAC’s biggest challenge is finding the time and money to put on events, particularly without a physical office or paid staff. It didn’t help that the Ontario government slashed arts sector funding from $18.5 million to $6.5 million earlier this year but, before that, FAC did not have much success getting grants as their conferences are so unique they don’t “tick all the eligibility boxes.” Instead, they’re exploring other options such as sponsorships with companies that align with their values.

For now, FAC relies on in-kind donations for printing services, food and beverages for receptions, and space rentals (OCAD University is a signature partner and hosts the festivals as well as committee meetings). Ticket sales (with pay-what-you-can options) and their annual Made by Feminists market at the Gladstone Hotel also brings in funds.

Despite budget constraints, FAC continues to grow. Submissions for the 2020 festival were up to 187 from 130 in 2017, coming in from Australia, South America, Europe, United States, and Canada. Ainslie says the political landscape has changed since their last conference in 2017 with the #MeToo movement encouraging people to talk openly about sexual harassment and gender inequality.

A voting committee of 11 people (artists, curators, activists, community members and academics) will select the final artists to participate at the festival, through a selection process that considers social justice issues, intersectionality, the collective’s mission and, of course, the strength of the art itself rather than the artist’s professional record.

Not Missing, Not Murdered by Amanda Amour-Lynx features the shirt the artist wore the night she was sexually assaulted. Photo: Black Umbrella Photography, Rebecca Tisdelle-Macias

With FAC serving as a spring board, past participants have gone on to show or perform their work in other venues and countries, collaborated with artists they met at FAC events, and even started conferences (see Black Futures Now and M.I.X.E.D) as well as a literary magazine (Living Hyphen).

Says Ainslie: “The world is a bit ridiculous and I hope people can come together and have some good conversations. We try our best to support the artists the way we can. We can’t always do that with funds but we can by creating a space where artists can build their CV and present work that may not be welcome anywhere else. We just want the best for all the artists involved.”

The Feminist Art Festival runs from March 5 to 7, 2020 in Toronto. Get your tickets here


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This article was made possible thanks to the generosity of Startup Toronto.


Related Articles

https://www.liisbeth.com/2016/12/07/make-difference-2017-take-action/

https://www.liisbeth.com/2017/03/02/gender-innovation-entrepreneurship/

Categories
Feminist Practices

Righting Who Writes Code

Takara Small, founder of VentureKids Canada

Takara Small is good at many things, but perhaps her greatest strength is being able to compartmentalize microaggressions so she can go on about her day. As someone who runs a non-profit, writes about technology, appears on radio and TV, and hosts two podcasts, she has little time to ruminate on the racism and sexism she encounters.

For instance, at a recent tech conference that she was covering for a leading publication, she was asked odd questions. Where is the bathroom? What floor is the event on? “I was so confused,” says Small. “Then I realized they thought I was staff because the only Black people at the conference were staff workers. They assumed anyone who was Black was not media or not a speaker.”

As a form of self-preservation, she adopts a “forgive but never forget” mantra and channels her energy into creating opportunities for others facing barriers in tech and STEM education.

In 2017, Small, 31, started VentureKids Canada, which brings free coding, financial literacy, product building, and entrepreneurship workshops to young people from low-income and underserved communities in urban and rural Ontario.

VentureKids turns common barriers into non-issues. Can’t afford a coding class? It’s free. Don’t have a laptop? They’ll provide you with one. Couldn’t pack a healthy lunch? Food is taken care of. Worried you’ll be the only girl? Classes are gender-balanced. The non-profit has even given students face time with big tech reps from Microsoft, LinkedIn, Google, and Twitter—an encounter that’s super rare if you’re a teenager from rural Ontario.

Says Small: “There’s a misconception that everyone owns a laptop and has access to the internet. That’s not true. In Canada the cost of data is quite high, and the cost of laptops and phones can be prohibitive for some people. I wanted to make sure I was creating free programs that would help people from financially sensitive backgrounds be able to work in an industry that desperately needs workers.”

Desperate is right. Tech leaders have been going on and on about how they want to attract more diverse talent. The research has made it abundantly clear that a diverse workforce leads to more open-mindedness and innovative ideas. According to studies, it’s also just plain profitable. Still, women, Indigenous peoples, some racialized minorities, and LGBTQ+ workers are less likely to be included in the tech economy compared to men and non-racialized workers. Even if they’re in, they don’t always feel included.

Bias is to blame for the lack of diversity, but so is a leaky educational pipeline that limits some people’s exposure to computer science careers at an early age. With VentureKids, Small is determined to patch up parts of that pipeline by showing marginalized kids that they too can be entrepreneurs and tech workers. Often, she’s one of the only people to show them these possibilities.

 Paying It Forward

When LiisBeth’s editor put out a call for pitches about Toronto feminist entrepreneurs advancing social justice, Small was the first person I thought of. Full disclosure: She’s a good friend of mine. We met at Ryerson University as journalism students. Even back then, Small was striving to make a difference, and this made her very, very busy. Now, on top of running her non-profit (she does not pay herself for this work), she hosts two podcasts: I’ll Go First for The Globe and Mail, and Dial Moving for #MoveTheDial where she talks to leaders about all the things that affect underrepresented groups in tech. She also makes her living as a public speaker and journalist for various media outlets including the CBC, The Globe and Mail, and Refinery29.

Small’s upbringing informs much of the work she does today. She was raised by a single mother in Toronto before they moved to Cobourg, Ont. Thanks to a combination of scholarships and financial aid, she was able to move back to Toronto to attend university and eventually break into the tech and media sector. Her journey hasn’t been easy, which makes her more determined to ease the path for the next generation of marginalized folks. “Not everyone can afford to go to college or university. If I really wanted to make a difference, I knew I had to start VentureKids for the kids and families who don’t have the means to pay for coding programs,” says Small.

This past summer, VentureKids launched its first rural-city program thanks to some sweet partnerships with Northeastern University Toronto, Microsoft Canada, the Town of Cobourg, and loyalty program company Points, along with individual donations. As a result, VentureKids secured free space, talented mentors, breakfast and lunch, and roundtrip train tickets for 20 students from eastern Ontario. Every Friday for three months, students aged 14 to 18 took basic web development classes and brainstormed ways technology could solve a specific problem in their community.

A teenager from a rural farm came up with the idea to start an equipment-sharing website where farmers could connect with other farmers to share the cost of expensive equipment and maintenance fees. The idea took off. Now, she’s getting interest from clients outside of her farming family.

Small says students developed several other promising ideas and everyone stuck with the program, despite the up to six-hour roundtrip commute in one day (some had to wake up as early as four in the morning). That tells her underserved youth are hungry for this opportunity. Says Small, “Not every student will create a business that gets funding, and not all startups end up lasting, but the fact that we have students interested in thinking about entrepreneurship is a success.”

Looking to the future, one of VentureKids’s goals is to expand its rural-city program to northern Ontario so that it can reach out to Indigenous and new Canadian students.

Raising a Village to Raise Tech Kids

Running a non-profit is hugely time consuming. Consider this recent tweet from Small: “Seriously thinking about changing my bio to simply read ‘tired’ lol.”

Small does a lot of networking, reaching out to volunteers, experienced teachers, and community partners to donate their time, money, space, expertise and even their laptops. Workhaus lends VentureKids a complimentary office space in their downtown Toronto location. Carole Piovesan of INQ Data Law provides free legal help. Says Small, “One thing I have learned is that there are people and allies who are willing to donate their time and services because they care about our mission.”

In the New Year, Small faces the enormous task of putting a volunteer board of directors together. The five directors don’t have to have a tech background per se, but a diverse set of skills and experiences certainly helps.

In the two years since becoming a non-profit founder, Small has learned a few lessons. She’s learned to seek volunteers who are reflective of the people they’re serving and who understand the difficulties of breaking into the tech sector. By contrast, one well-known business leader offering unsolicited advice clearly didn’t get the program when he suggested cutting the free breakfast and diverting the money to other things. Says Small: “That advice doesn’t really match with how we operate. I think it’s well meaning but when you consider the fact that the populations we’re serving don’t have the resources, then it doesn’t really make sense.”

It’s a hard slog, for sure, but Small says the benefit of a non-profit is being able to focus on the communities and youth they serve instead of worrying about making as much money as possible to please investors and shareholders.

“Finding ways to keep yourself optimistic is really important and VentureKids helps with that,” says Small. “It’s a ray of hope and it keeps me excited about the future.”


Recommended Listening

On top of hosting two podcasts, Takara Small listens to a few herself. Here are her faves:

Harvard Business Review: HBR has a variety of podcasts on leaders in business, women in the workplace, and advice on work dilemmas.

Blacticulate: A British podcast featuring interview with young Black professionals.

Oprah Super Soul Conversations: Oprah’s personal selection of interviews with thought-leaders, best-selling authors, spiritual luminaries, as well as health and wellness experts.

Science Vs: This podcast explores fads and trends to find out what’s fact and what’s not.


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Categories
Feminist Practices

Forging a Path of Her Own

Christina Stembel, Founder of Farmgirl Flowers

 

Christina Stembel had a business idea: Bring beautiful, handmade floral arrangements to people who wanted a higher quality than supermarket bouquets and more personal than a floral distribution company. With $50,000 of her own money, she made Farmgirl Flowers happen.

“I used to get dejected about the fact that I couldn’t raise capital as a sole female founder without a pedigree,” says Stembel, who keeps a spreadsheet of the 101 investors and venture capital firms that have turned her down. “But I realized it was just my ego. There’s a myth that if you don’t get VC funding, you can’t be successful, but we’ve grown to $30 million in annual revenue with 50 percent or more growth year over year.”

Though Stembel has had to manage the growth of her San Francisco-based company carefully, funding it with her own savings and the company’s profits has meant that every choice about its growth has been hers to make. “I get to make decisions based on what’s right, not just what’s going to look good to investors,” she says. “My goal is to create a company that I would want to personally buy from, sell to, and work at.”

And that’s what she’s doing: She pays vendors on time, instead of asking for a 90-day payment term, so that the farmers who supply her flowers can pay their own bills; she waited until she could offer her staff of 150 employees full medical benefits and 401ks with a company match before drawing a salary; and she’s created hiring guidelines that don’t require employees to have a degree (high school nor college) or a home address.

Stembel’s story is a typical one for women entrepreneurs. A new study called “Beyond the Bucks”—sponsored by Bank of America and authored by Lakshmi Balachandra, an assistant professor of entrepreneurship at Babson College and former associate at a venture capital firm—looks at why VC funders aren’t investing in women-led startups and how women manage to succeed despite that. The study tackled this disparity: Women own 39 percent of all privately held firms in the US, yet received only 2.2 percent of the $130 billion in venture capital invested in 2018. The situation is slightly better for women owning or leading startups in Canada; they received a measly seven percent of all venture capital.

The study interviewed 30 women entrepreneurs across North America who have achieved annual revenue of more than $5 million. That’s the rubber-meets-the-road spot, according to the study, where “revenue naturally plateaus and the toughest test comes.” All participants in this study soared past that mark; their companies boast average revenues of $43 million. The study’s goals were simple: understand the difficulties faced by women entrepreneurs in the male-dominated world of startups and identify the strategies women use to overcome those obstacles. Without an injection of VC cash, many of the women in the study found a different and perhaps more satisfying path to success through organic growth, which allowed them to explicitly consider the needs and well-being of their employees and communities—factors that male-driven companies tend to consider as second-tier metrics.

The study found that women entrepreneurs faced three major systematic roadblocks to success.

The first we know all too well: network exclusion. That’s the classic “It’s who you know, not what you know” world, otherwise known as the “boys’ club” where deals happen, usually in places men like to socialize, such as the golf course or over drinks.

The second is less well known but no less harmful: market misperceptions. That refers to the double disenfranchising of women founders. Investors discredit their ideas and leadership simply because they are women. Then investors fail to take women-led startups seriously due to gendered assumptions about the markets women entrepreneurs serve. Business guys call it the “the mommy market,” their blatant sexism blinding them to the fact that women drive some 80 percent of consumer spending. That’s a mother load of a market that women entrepreneurs are clearly positioned to tap into. Take for instance Spanx founder Sara Blakely, who had difficulty attracting investors for what would become a multi-billion-dollar business.

But it’s not just VC funders overlooking—or, more to the point, not seeing—women entrepreneurs. Balachandra points to the Forbes Most Innovative Leaders of 2019 list as an example. Out of 100 featured leaders, only one woman made that list. “How did they come up with the list?” she asks, laughing. “It’s written by two white men. [They] started with Fortune 500 companies, of which less than 10 percent are run by women. And at some point, the publisher, who is also a white man, saw the list and said, ‘Yep, this is who we want to highlight.’” In other words, their starting point to defining innovation left out half the population.

And that underlines the third major roadblock women founders face, which is the hardest to overcome: managing expansion with underfunding. Even women entrepreneurs who successfully hurdle over the first two roadblocks to launch a viable business still find themselves systematically locked out of the traditional venture capital system, according to Balachandra.

So how does a superheroine entrepreneur grow her company by leaps and bounds without the extension ladder of VC capital? Without outside investment to catapult strategy and development, women founders often bootstrap their firms, using their own personal savings to launch their enterprises. Then they pour business profits into growing their companies and sales organically.

While hugely difficult, following that strategy has a considerable upside for feminist founders. Through organic growth, founders can maintain ownership and control of their companies and embrace slow expansion, investing more consciously in human capital along the way. For the study, Stephanie Kaplan Lewis, co-founder and CEO of Her Campus Media, explained the approach her company took and how it worked well for her. “There were some years where we didn’t grow as much as we would’ve liked, but at the same time, we also were profitable for 10 consecutive years. We’ve never had to lay anyone off,” said Kaplan Lewis.

For all the benefits, that strategy rarely earns the industry respect that hyper-growth (grow big, sell fast) “unicorns” command, even though companies that grow organically, by definition, produce actual profits and have proven value in the marketplace, unlike investor favourites like WeWork or Amazon, who have enjoyed VC investment while operating in the red for years. Balachandra blames that credibility gap on our fixation with a “traditionally masculine way of thinking.” And there’s a big downside to that, as it “leads us to overvalue these unicorns or venture-backed startups because they were the ones who could get the support of these big investors, who are 94 percent men.”

Balachandra says the metrics that male-dominated VC firms use to target investments are heavily weighted towards financial performance and overlook other indicators of company performance and value such as employee retention, stakeholder satisfaction, and environmental impact. While women-led firms often perform well on the latter, their businesses often get passed over for initial investments that can spur rapid growth. And that won’t change, Balachandra says, until we have more women in decision-making roles.

So What’s A Women Entrepreneur to Do?

It will take time to infiltrate the masthead of business magazines and knock the sexism out of male VC investors; in the meantime, women entrepreneurs have found other options to grow their businesses.

If they can’t bootstrap a startup with personal savings, they can pursue debt, though that’s not without big downsides; while it does allow a founder to keep control of her company, debt can be expensive to service. And also difficult to even get if you are a woman. Balachandra explains that women founders often face that “having the right connections” roadblock, especially if their company doesn’t have sufficient assets to secure the amount of money that they need. Said Stembel: “I can’t get a bank loan because [Farmgirl Flowers doesn’t] pattern-match what banks are looking for.” She cites a lack of personal assets and big advance purchase orders (“Our orders come in within a week of when they’re delivered”). While government-sponsored lending programs exist, such as the Small Business Administration in the US, their interest rates are not cheap.

Women can also fund growth by trying to negotiate lines of credit with suppliers, though they often crash into roadblock one again: the boys’ club. “Women we talked to for the study told us that they found that people weren’t willing to extend those lines of credit to a woman or to someone they were less familiar with,” says Balachandra.

Another option for women leading startups is to find individual investors, sometimes called angel investors, but again, angel investors are more often men (77 percent), and male angel investors have considerable more wealth to invest (cutting checks 41 percent greater than their women counterparts, according to a 2017 study by the Wharton School of the University of Pennsylvania). And roadblocks one through three suggest those deep-pocketed male angel investors are more likely to invest in male-led enterprises.

But men–and women—who avoid investing in women’s startups are missing out not only on the chance to back powerful, industry-shaping startups but to potentially get big returns on their investment. Take Aden & Anais. When Raegan Moya-Jones couldn’t attract traditional investors for her new baby product company, she was forced to build the business on her own. Now, she is able to reap all the financial benefits, telling the study she “ended up a very successful entrepreneur…[after] build[ing] a business from scratch that now generates over $100 million in annual revenue.”

Where there is considerable will, women entrepreneurs often find a way to succeed, as Stembel, Kaplan Lewis, Moya-Jones, and the 27 other women interviewed for the study show. But their paths were considerably more difficult as systemic, sexist obstacles slowed or blocked their progress and those of many others.

Interestingly, when women entrepreneurs do make it, against all the odds, they tend to pay it forward to the people and communities that made their success possible. According to the Wharton study, women who have made enough money to become investors themselves consider a founders’ gender to be seven times more important than men do. And women investors place more than twice as much importance on social impact as men do.

We think that means investing in female-led startups helps women make the world a better place. Double win.


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Categories
Activism & Action Feminist Practices

Brewing Up A Revolution

 

Annabel Kalmar, Founder, Tea Rebellion,  Photo by PC Foo

Annabel Kalmar learned first-hand how hard it is for farmers to earn fair prices for their products. As a student of agriculture economics in the late 1990s, she harvested coffee in the fields of the Dominican Republic, interviewing farmers along the way. The experience sparked a passion for changemaking.

“I wanted to help farmers get access to a different way to market,” explains the German-born entrepreneur, who went on to work in microfinance with the World Bank, earn an MBA at the London School of Business, and work in the UK as a business strategist.

Recently, she pivoted to entrepreneurship as a means for changemaking. After moving to Toronto with her husband and three children in 2017, Kalmar launched Tea Rebellion. Her idea—two decades in the steeping—is to disrupt the way tea is traditionally marketed, traded, and consumed. By buying and selling single-source, direct-trade tea, her company creates economic opportunities for several female-led farms in developing countries, takes an active role in community building, and supports organic farming methods.

But Kalmar’s ambitions aren’t just altruistic. She grew up in Germany drinking loose-leaf black tea, but what she tasted of London tea culture failed to impress.

“I was always disappointed with what was in front of me,” says Kalmar, explaining that mass-produced teas are typically blended from multiple sources, then finely ground and packaged in bags. What ends up in the cup, she contends, is undrinkable without sugar and milk.

As a student of agriculture economics, Kalmar had seen how new trade models transformed chocolate, coffee, and wine. Educated consumers came to appreciate—and pay more for—flavours associated with particular regions, ensuring that growers of those premium products are fairly compensated.

“A lot of people learn about wine, but they know nothing about tea,” says Kalmar. “I wanted to bring that knowledge and appreciation of the origins to more tea drinkers.”

With Tea Rebellion, she intends to shake up the status quo. “I’m not just selling tea.”

Instead of participating in the commodity markets in tea-growing countries—many with roots in colonialism—Kalmar initially sought out fair-trade certified suppliers. Since her World Bank days, she knew the certification system could improve working conditions on farms by setting standards for fair pay and ethical treatment of producers. She reached out to Fair Trade Canada and began contacting farmers.

To her surprise, farmers were not saying, “Oh great, let’s do fair trade,” remembers Kalmar. “The farms I talked to said it’s too difficult. It creates additional costs. There is too much bureaucracy.”

Rather, the farmers—even some fair-trade certified producers—pointed to direct trade as a preferred alternative.

Both fair trade and direct trade have their places, according to Kalmar. They may create similar results in some cases, but they start with different goals.

Fair trade aims to improve the lives of farmers by setting ethical and environmental standards and creating transparency. Certification establishes minimum prices to ensure farmers are paid fairly. Incidentally, fair-trade standards may also improve the quality of the end product.

Tracey Mahr, tea lover and fellow traveler to Kanchanjangha, Dunbar Kumari, founding mother of the tea cooperative, and Annabel Kalmar, founder of Tea Rebellion /Photo by Nichsal Banskota

 

The goal of direct trade is to bring premium products to market. This model allows farmers to differentiate their products and charge prices that are typically higher than the minimums set in fair-trade systems. Higher prices will almost certainly improve the lives of farmers.

Kalmar dug into the research and discovered that many consumers are confused by a recent proliferation of certifications, which influenced her decision to change her strategy to direct trade.

Tea Rebellion now buys from six farms around the world: Japan, Indonesia, Taiwan, Nepal, Kenya, and Malawi. That allows Tea Rebellion to work with smaller, socially minded farms—not just those that are scaled to afford a fair-trade certification process.

The direct relationship means there is no middleman; Kalmar can visit frequently to influence the end product and the social impact of the farm.

In Nepal, Kalmar helped raise CAD$10,000 to build a primary school for the children of workers living on the tea farm. The school will save some 30 children from walking several hours over rough terrain to attend school, which improves attendance and frees parents to work consistently.

In Malawi, Kalmar chose to buy from a farm that provides health care infrastructure for the community surrounding the farm. In Japan, where chemical farming methods have historically been the norm, Tea Rebellion works with a pioneer of organic farming.

In three of the six farms she buys from, Kalmar has formed close partnerships with women in leadership positions, strengthening their positions in what has been a male-dominated business. She didn’t initially set out to work with female-led farms, but she found that in developing countries where language or gender created barriers, she was able to form better relationships with farms where women led.

For example, in Taiwan, Kalmar works with Ai Fang, one of two daughters involved at Jhentea, a family-owned farming operation. Ai Fang has worked in the family business since the age of 18, learning the art and science of tea growing, processing, packaging, and brewing from her mother.

Kuei Fang and Annabel Kalmar, Yilan Country, Photo by Ai Fang

According to Jhentea’s website, the company was founded by a man in the early 19th century, but a marital split in the mid-20th century left a woman in charge. She was the first female tea master in the region, and ever since the farm has been passed down to female family members. Ai Fang’s daughter, Valencia, who is now learning about tea, represents the next generation.

In Shizuoka, Japan, the Kinezuka family operates NaturaliTea, a cooperative of farmers. Though the farm’s formal leaders are men, Kalmar formed a direct business relationship with one of male founder’s two daughters, including Tamiko Kinezuka, who manages the farm’s tea processing and is responsible for quality control. That relationship has been beneficial to her career.

“In Japan, the tea industry is still overwhelmingly controlled by older men at all levels, from the farms to the markets,” Kinzuka explains. “Some of this is changing as younger generations take over, but the shift is very slow. Working with someone like Annabel allows us to demonstrate the unique contributions that we can make, and prove our commitment to rejuvenating a stagnating industry.”

Kalmar loves to share the stories of growers she works with, shining a spotlight on tea producers through Tea Rebellion’s packaging, website, and social media. When tea drinkers know more about growers, growing methods, and the country of origin, they can learn to appreciate the difference between the chocolatey undertone of a black tea from the high mountains of Nepal, and the bright and floral flavour of a black tea grown in Taiwan. Says Kalmar, “I want to help people develop their palates.”

By telling the tale behind each tea, Tea Rebellion also shares power with farmers. They can then develop recognizable brands, creating a rationale for higher prices, which injects more money and investment into their communities.

Kalmar has a vision that would connect tea growers and tea drinkers, as well as put Tea Rebellion on the tips of tongues everywhere. She would like to rival a global brand like Twinings as the “go-to” for tea drinkers, and source tea in many more tea-growing countries.

For now, Kalmar is bootstrapping her business growth, investing her own funds, working from home, and depending on interns to lend a hand. Her website lists 24 types of tea (you can order direct) and she sells to some 25 retailers, most of them in Toronto. Prices are similar to other premium brands, though competing North American labels such as Tease and David’s Tea don’t promise single-sourced products.

Kalmar’s goals include hiring a team and marketing her brand at tea festivals and conferences around the world. That will require a significant investment, and she’s gearing up to present her idea to investors.

But the ultimate goal is to build prosperous tea farms. “If I can build a sustainable business with Tea Rebellion, I can support these farms for the next 10, 20, 30 years,” she says. “And that’s really what I want.”


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This article was sponsored by Startup Here Toronto.


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