Reimagining Ownership, Redefining Opportunity: Celebrating Employee Ownership Month in Central Minnesota
As she marks her third year leading the Minnesota Center for Employee Ownership, Executive Director Kirsten Kennedy reflects on her journey, her passion for equitable business models, and the growing movement to reshape Minnesota’s economy.
When I became executive director of the Minnesota Center for Employee Ownership (MNCEO) in 2022, I said I looked forward to helping “re-imagine the way businesses are owned in Minnesota via employee ownership, which will spread economic power and reduce wealth inequality for all people, particularly women and people of color.” Three years later, that vision continues to guide everything I do — and October, Employee Ownership Month, is the perfect time to reflect on how far we’ve come and where we’re headed next.
A Vision for Shared Prosperity
My passion for community-centered economic development began long before I joined MNCEO. As mayor of North Branch from 2014 to 2018, I saw firsthand how small businesses serve as the heart of local communities. I also saw how fragile that ecosystem can be when business owners retire or sell to out-of-state buyers. Too often, long-standing local businesses close their doors or move operations elsewhere, leaving behind lost jobs, weakened tax bases, and fewer opportunities for young families. Employee ownership offers a better path — one where businesses, jobs, and wealth stay rooted in the community. At its core, it’s about giving employees a stake in the success they help create. It’s about transforming workers into owners, and ownership into opportunity.
Why Employee Ownership Matters
Here in Minnesota, more than 52,000 privately held businesses are owned by baby boomers nearing retirement. Collectively, they employ over 600,000 Minnesotans and contribute billions to our state’s economy. As these owners prepare to transition out of their businesses, the question of what comes next has never been more urgent. Employee ownership — through Employee Stock Ownership Plans (ESOPs), Worker-Owned Cooperatives (WOCs), or Employee Ownership Trusts (EOTs) — gives business owners a practical, financially sound way to transition out of their companies while keeping them locally owned. Nationally, studies show that employee-owned companies are more resilient and profitable than their traditionally owned counterparts. According to the Rutgers Institute for the Study of Employee Ownership and Profit Sharing, employee-owners have 92% higher median household wealth and 33% higher median income than workers without ownership stakes. They are also significantly less likely to be laid off during economic downturns. In short, employee ownership builds stronger businesses — and stronger communities.
A Movement Growing in Central Minnesota
At MNCEO, we’re working to make those opportunities more accessible than ever, especially in central Minnesota, where manufacturing and small business ownership form the backbone of the local economy. Through a new partnership with the North Central Small Business Development Center (SBDC) at Central Lakes College and the Minnesota Manufacturers Association, we’re helping business owners and advisors explore ownership transitions that make sense for them. Together, we’re providing no-cost, confidential consultations that include education about ownership models, business valuation support, and succession planning. We’ve also redesigned our website, MNCEO.org, to make it easier to find tools, success stories, and step-by-step guides for exploring employee ownership. It’s an ever-growing, unbiased resource hub for business owners, employees, and advisors alike. Our expanded podcast series continues to highlight inspiring Minnesota success stories, showcasing real companies that have made the transition to employee ownership and the positive impact it’s had on their workers and communities. Each episode of “The Worker Co Podcast” brings the concept to life through personal stories that make the idea of employee ownership tangible and achievable. In addition, MNCEO hosts a free monthly webinar series designed to introduce Minnesotans to the fundamentals of employee ownership, while our Advisor’s Edge course provides professional advisors — accountants, attorneys, bankers, and consultants — with the specialized training they need to help clients explore these models. Every tool we create and every partnership we form moves us closer to one goal: making employee ownership a mainstream option for Minnesota business owners.
Reducing the Wealth Gap Through Ownership
Employee ownership is also one of the most powerful tools we have to reduce the gender and racial wealth gaps. When employees share in the value of the companies they help build, they gain access to wealth-building opportunities that have historically been out of reach. For women and people of color — who have long faced barriers to business ownership, fair wages, and generational wealth — employee ownership creates a bridge. It transforms economic participation into equity, turning workers into stakeholders and neighbors into partners. This is especially important in greater Minnesota, where rural economies are often dependent on a handful of locally owned businesses. When those businesses close, the consequences ripple across entire communities. But when ownership transitions to employees, that wealth and stability stay right where they belong — in the hands of the people who helped create it. At MNCEO, we’re not just advocating for a model. We’re building a movement that gives Minnesotans the tools to shape their own futures.
Looking Ahead: Building on Five Years of Progress
Founded in 2020, MNCEO was created to be a statewide resource for education, connection, and inspiration around employee ownership. In just five short years, we’ve grown into a trusted hub for owners, employees, and advisors alike — a place where people can learn, ask questions, and take their first steps toward ownership. As I reflect on my third year leading this organization, I’m filled with pride in what we’ve built together. Our team has expanded outreach across Minnesota, forged new partnerships, and amplified the stories of businesses that embody the spirit of shared prosperity. But there’s still more to do. The wave of business transitions sweeping across our state presents both a challenge and an opportunity. With tens of thousands of Minnesota businesses changing hands in the coming decade, now is the time to ensure those transitions strengthen — rather than hollow out — our local economies. That’s why I remain deeply committed to reimagining the way we think about business succession. Employee ownership is not a niche idea — it’s a practical, sustainable solution that preserves jobs, keeps communities strong, and ensures the benefits of business success are shared by all.
A Call to Action
As we celebrate Employee Ownership Month, I encourage business owners, advisors, and community leaders in central Minnesota to explore what employee ownership could mean for them. Visit MNCEO.org to learn more about our resources, register for a webinar, or listen to our latest podcast episode. If you’re a business owner thinking about your next chapter, we’re here to help you explore your options. Together, we can create a more equitable, resilient Minnesota — one owned by the people who make it thrive.
About the Author
Kirsten Kennedy is the executive director of the Minnesota Center for Employee Ownership (MNCEO). She served as the mayor of North Branch, Minn., from 2014 to 2018 and is a lifelong advocate for equitable economic development and shared prosperity.
