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Boomers' Retirements Could Usher in a Golden Age of Employee Ownership
Cities in particular would benefit from supporting boomers in converting their companies rather than selling them or shutting them down
With baby boomers outgrowing their businesses and thousands struggling to make ends meet, now may be a better time than ever for employee ownership.
In the wake of the Covid-19 pandemic, baby boomers across the country are thinking about succession, including in Texas. Their employees lack the access capital to needed purchase or continue the company. Employee ownership is one potential response to this dilemma. This would allow the owner to pass on their business to a trusted set of hands as well as open it up to government assistance.
Moreover, the pandemic has demonstrated how unpredictable economic currents can be. Small businesses across the country, the backbone of many cities, had to close their doors. In response, some municipalities may incentivize a more resilient and equitable form of business ownership through employee ownership. Municipalities could also incentivize employee ownership through federal programs such as the Workforce Innovation and Opportunity Act or the Main Street Employee Act, which would provide government assistance to employee-owned companies.
The pandemic demonstrated the need for a more resilient business structure. Employee ownership may be the answer, and cities are in a key position to promote them.