Equity & Ownership: The Case for Worker Cooperatives, ESOPs, and Profit-sharing Plans

There has never been a better time to redefine “how business is done.” Local businesses keep wealth anchored in their communities, and independent ownership matters.

Organizations like Lowland Country Local understand the potential for good, and they recently inspired business owners with their annual Good Business Summit at the end of February 2021.

 Among the popular topics of “doing better business” was a panel about employee-ownership. MNCEO Board Member Thomas Crouse joined Rachel Battles (Happy Earth Cleaning Co-op) and Patty Viafara (Project Equity) for a discussion about the benefits of employee-ownership as a succession plan.

 Retiring business owners rarely consider employee-ownership as a viable option for selling their business, and the three panelists did their best to convince attendees to see beyond the myths. Employee-owned businesses tend to be more resilient and adaptable than their privately-owned competitors, and they create more economic equality for all employees. Thomas, Patty, and Rachel fielded difficult questions about the survival rate of employee-owned businesses and the feasibility of employees “buying into” their place of employment.

 The truth is, employee-ownership is not right for every business. It is, however, far more achievable than most owners and employees assume, and the potential benefits often far outweigh the risks. It’s easier than ever to explore employee-ownership with organizations like the Employee Ownership Expansion Network offering free assistance to business owners.

 In short, 2021 is the year to consider transitioning your business to an employee-owned model. In these times of uncertainty, it will help you leave a durable legacy.

~Thomas Crouse, Happy Earth Cleaning