Folk music clubs are part of the music and show business. They may or may not have anything to do with folk music, not being created for business reasons.

Occupying folk music is unnecessary because it persists regardless of business interests.

As to the "process", new songs are being written everyday by songwriters who don't care about the songwriting business. Actually, that's the way Woody Guthrie started, his earlier quote inviting anyone who wants to take his songs and sing them anyway they want.
The quote was later modified and I suspect it was done by outside influences when Woody could no longer make rational decisions for himself.

One way to occupy folk music is to question the copyright laws that are in place now when in most cases songwriters are not paid as much in royalties as publishers and recording companies. The downloading issue is heavily weighted in favor of the 1% music business people who cash in on the creative process.