Business Succession planning through Employee Ownership
Certified EO, identifies over 6,300 companies in the US and 181 in Missouri that meet their standard of Employee-Owned meaning at least 30% of the company is owned by the employees. They highlight the benefits such as increased wealth building for the community, a better work environment and stronger employee performance. An upcoming regional conversation here in Cape Girardeau may offer some insights and pathways to this strategy for local organizations.
According to the Missouri Center for Employee Ownership (MO CEO), Employee ownership is a business model in which employees collectively own a percentage of the business for which they work. Two of the main forms are Employee Stock Ownership Plans (ESOPs) and worker cooperatives. In both, employees are given a financial stake in the business. As business prospers, employees prosper.
They say now is a key moment for employee ownership in Missouri sharing some important statistics.
- Over the next 10 years, more than 4 million U.S. businesses owned by retiring baby boomers will change hands or dissolve.
- More than half of all small business owners do not have a succession plan.
- Many businesses will be sold and leave the state of MO, or close their doors permanently, resulting in lost jobs, tax base, and community impacts.
On Monday June 26th Missouri Source Link, a non-profit organization based in Kansas City working with entrepreneurs and small businesses across the State of Missouri will host an informational session with businesses on the strategies and benefits of exploring employee ownership opportunities for their business. For more information or to register your attendance visit them online at mosourcelink.com