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Knocking Down Barriers: Employee Ownership
Conforming business under ownership or making ownership conform to businesses?
The matter of employee ownership—ownership of a small business typically transitioning to ownership under employee interests due to the retirement of the original owner— seems to be a real struggle in many ways for these small businesses. Alternative structures for employee ownership aren't necessarily a feasible option for small businesses in the economy and lead to more risk and pushback for employees. A few ways we as an economy can improve the opportunities for the transition of employee ownership are:
Reducing financial barriers to converting to employee ownership
Reducing the legal burden of conversion
Pushing the employees in positive ways to be set up and positioned well
WHY IT MATTERS:
What is employee ownership and what does it do?
This ownership allows workers the opportunity to create their own wealth and leads to an increase in engagement from the employees in person and in the real world.
Not many businesses take advantage of the positives of employee ownership through small businesses specifically. This can be due to the barriers stated above.
If the push for small businesses to adopt employee ownership and its culture is achieved, then it is likely that the workplace will be transformed for the better and strengthen the small businesses.
Conversion to employee ownership requires a considerable amount of time and capital, as well as expertise on how to meet complex legal and financial requirements. These are the barriers to employee ownership.
It is in the interest of the entire global economy to allow small businesses to thrive and ease the legal, financial, and positional barriers posed by the transition of employee ownership from the owner to the employee. Click here to learn more.
A few organizations have already adopted these efforts to make the transition of employee ownership more successful and a feasible endeavor: ProsperWorks, Obran Cooperative, and Democracy at Work Institute.
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