Inštitut za ekonomsko demokracijo

EO and ownership transition: Guidelines

Guidelines for Employee Ownership

Democracy Collaborative together with Rutgers School of Management and Labor Relations published guidelines that should help different actors around the world to promote employee ownership as the model for ownership transition with SMEs.

“With the impending wave of baby boomer retirements, millions of privately owned businesses could come to market in the coming decades, and the COVID-19 pandemic will only accelerate that process.  Meanwhile, interest in financing business owner exits that result in employee ownership is growing rapidly among impact-focused investors. This emerging investing trend is driven by a growing recognition that employee ownership is a proven, scalable, and sustainable strategy to address the problem of rampant inequality.

Impact capital could be the missing agent needed to ensure that a significant portion of these “silver tsunami” firms transition to employee ownership, creating the momentum needed for broader adoption of the model. But how?

These Guidelines for Equitable Employee Ownership Transitions are a collaborative work of practitioners and thought leaders in the fields of investment management, employee ownership, and socially responsible business who believe deeply in the promise of shared enterprise ownership to build a more just and inclusive economy.”

Read more here.

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