August is National Black Business Month, and an emerging program in the Milwaukee area is seen as a game-changer in elevating minority-owned businesses trying to get off the ground. This year, several partners launched MKE BOSS - which stands for Build, Operate, Scale and Sustain. The digital platform links entrepreneurs of color with a range of resources, including lending and technical assistance.

Pam Bell, city executive with Self-Help Federal Credit Union, said for a lot of Black and brown business owners, it can be hard for them to navigate the financial services sector.

"Whatever that business is, whether it's food service and you're skilled in that trade, 'But how do I scale this?' - breaking down how much it costs to create a product and, 'How much do I need to put back into my business so that it's profitable?' and all of that," she explained.

The program's partners, including Self-Help, want to help these business owners shape their vision and establish more generational wealth in underserved areas. While this initiative is Milwaukee-centric, organizers hope to create a standard that serves as an inspiration for towns and cities elsewhere. Various rankings describe Wisconsin as one of the worst states for racial disparities.

Wendy Baumann, president of Wisconsin Women's Business Initiative Corporation, another partner, said beyond their assistance, government agencies can step it up by turning to minority-owned business for service contracts.

"County, state, local governments, and all the things that they purchase. Money talks, [and these agencies need to do] direct purchasing from these businesses," she said.

According to the Small Business Administration, 99% of U.S. companies are small businesses - defined as those with 500 employees or fewer. Baumann said that's an important statistic to remember when looking at ways to create a more level playing field within the nation's economy. The BOSS program is funded by a grant from J.P. Morgan Chase.

CLARIFICATION: While worker-owned cooperatives are seen as one of many solutions to the expected wave of small-business owners retiring, organizers with the May Day Cafe initiative note that aging ownership is not related to their transition. (10:00 a.m. CST, August 14th, 2024)

As small-business owners decide to retire or move on, some are helping to fuel the trend of worker-owned cooperatives in Minnesota and elsewhere.

These operations are described as businesses owned equally and self-managed by participating employees. A 2021 report found a 30% increase in worker-owned cooperatives in the United States, with nearly a dozen in the Minneapolis/St. Paul area.

When staffers at the May Day Cafe in South Minneapolis heard of it being put up for sale, barista Mira Klein said they were energized to launch an effort to buy it themselves and keep this community fixture open.

"It felt really important that the cafe stay in community hands," she said, "and continue existing as a place that people could gather, that they could eat together, access affordable food."

Klein said she's interested in how this affects workers by having a greater say in decision-making. With the help of a new crowdfunding campaign, the workers hope to close on the sale later this year. The same report tracking this movement also touches on some of the challenges these cooperatives run into, and providing health insurance topped the list.

According to the group Project Equity, 49% of businesses across Minnesota are owned by people age 55 and older. As the "silver tsunami" plays out, Klein, who stresses that aging ownership is not a factor in May Day Cafe's planned sale, said they want the chance to demonstrate that this approach can be a viable response to broader transitions in the small-business landscape.

"Showing that a worker cooperative model can be successful in a place like May Day, that could potentially have some pretty far reach," she said, "and that's something that we're really excited about."

The Project Equity report said nationally, one in three business owners age 50 and older are having a hard time finding a buyer. The authors say handing the keys over to willing staff members can lead to increased longevity of the business, better pay for workers, and increased local spending in the community.


get more stories like this via email

By John Hilber / Broadcast version by Farah Siddiqi reporting for the Kent State NewsLab-Ohio News Connection Collaboration.

In the first two days after sports betting was legalized, Ohio saw over 11.3 million bets placed - nearly one for every Ohio resident, according to the Cincinnati Bar Association.

Within a year, Ohioans had bet $7.65 billion on sports.

Sports betting became legal in Ohio effective Jan. 1, 2023. Since then, sports betting has driven a significant increase in state tax revenue and sports viewership - along with reports of problem gambling, experts say.

"The number one driver [of legalizing sports gambling] is a tax revenue opportunity," said Stephen Shapiro, a professor in the Department of Sport and Entertainment Management at the University of South Carolina. "In states where it is not legal, it's illegal gambling, and the state is seeing no benefit from that. So that's revenue that did not exist before, and it could be used for a variety of benefits for the state."

In 2023, Ohio collected more than $936 million in tax revenue from sports betting. Gamblers have to pay a 10% tax on all winnings. According to the Ohio Department of Taxation, the state uses the taxes to fund different Gross Casino Revenue Funds and efforts to help with gambling problems.

Apps like FanDuel and DraftKings facilitate many sports bets in the 38 states that have legalized it. By using apps, gamblers aren't limited to traditional bets on the margin of victory or bets on who wins or loses outright - they have many options per sporting event, like multi-stage parlays, event-based bets and individual performance bets.

"Traditionally, someone could have bet on this game, and they watch the game in its entirety, and they win or lose based on the outcome and the score - it's one bet," Shapiro said. "Now, in this particular game, the Packers get the ball, and they drive down the field and score a touchdown, and there were 20 opportunities to bet during that one drive."

Gambling means more people watching sports, experts say

Now legal in most of the United States, sports betting has shown some benefits for professional sports leagues.

"People are definitely watching sports that they have not watched before due to gambling - there is no question about it," Shapiro said. "It leads to more consumption and consumption of sports that you're not typically watching."

That may be because gambling can heighten viewers' excitement.

"Gambling, for the most part, provides people with the opportunity to get excited because of the possibility of winning," said James Whelan, a research professor in the Department of Psychology at the University of Memphis. "There are social reasons to gamble, but in the end, the idea of doing something risky is getting rewarded by winning money,"

Ted Baugh, the vice president of Corporate Partnerships and Premium Hospitality for the Cleveland Guardians, said Major League Baseball is trying to help everyone associated with the sport navigate legal gambling, including players and fans alike.

"It is constant education," he said. "It is constant reminding that it is legal, but don't be stupid. It is more about what is good for the fan and what is legal."

As gambling expands, so does problem gambling

According to Ohio for Responsible Gambling, the Problem Gambling Helpline in Ohio received 10,637 calls in 2023 compared to 6,835 in 2022.

"Everybody with a gambling problem comes at it a little differently," Whelan said. "For many of these people, there are other things going on in their life that also feed into why they may become overly involved in gambling, even though gambling is harmful to them."

Whelan encourages gamblers to monitor themselves by asking, in part: "When am I in harm's way? When am I getting hurt by this, and I need to back off?"

Whelan said the majority of people who want to control their gambling can benefit from cognitive-behavioral intervention treatments. Cognitive-behavioral therapy aims to change a patient's behavior by changing how the patient thinks about the actions.

"Have a good time, enjoy yourself, set limits and stick with them," Whelan said.


This collaboration is produced in association with Media in the Public Interest and funded in part by the George Gund Foundation.


get more stories like this via email

Income inequality in Wisconsin continues its long path upward, according to a new academic analysis, and voices at the community level are hopeful about closing gaps - but warn it won't happen overnight.

The University of Wisconsin-Madison summary says income inequality in the Badger State isn't quite as high as the national level, but has been growing steadily over the past 30 years.

The author said higher-income individuals benefit disproportionately from the economic growth.

Robert Kraig, executive director of Citizen Action of Wisconsin, said years of policy decisions and tax code changes are driving factors.

"We need a deliberate policy that restores the conditions for greater economic equality and greater racial equality," said Kraig, "because our socioeconomic system is color-coded, where you are more likely to be poor if you're Black or Brown than if you are white."

Kraig said there are no longer guaranteed pathways for people to secure good-paying jobs, whether they pursue college or look for work after graduating high school.

He said he thinks jobs tied to clean energy growth, spurred by federal investments, can help reverse years of troubling trends.

But he said other important sectors, like childcare, need structural changes to foster stronger wage growth.

Kraig suggested that if someone working a low-wage job can't take time off to attend a training course, they stand little chance of advancing in a new career.

So, he said another reform that's needed is an overhaul of job training programs.

"A lot of the workforce training programs we have are helpful to a number of people," said Kraig, "but they don't move the inequality numbers because they don't reach enough people."

The Inflation Reduction Act has set aside billions to train and place people in clean energy jobs. But Kraig said other programs need to pay people to train and start working in a new career much sooner.