A succession strategy to keep local businesses in San Francisco
Watch the webinar: A succession strategy to keep local businesses in San Francisco
Recorded on: Wednesday, November 18, 2020
Project Equity, in association with the City of San Francisco Office of Economic and Workforce Development and San Francisco’s Small Business Development Center, invited San Francisco business owners to a webinar to learn how employee ownership is a succession strategy to consider.
Local business is at the heart of every community in San Francisco and these businesses are facing tremendous challenges today and are uncertain about what tomorrow may bring. Locally owned businesses circulate three times more money back into the local economy than absentee-owned firms or chain businesses. And local businesses are based on local relationships, fostering trust and civic engagement.
COVID-19 has negatively impacted many small businesses in San Francisco. These COVID-related challenges are layered on top of an ownership succession crisis that was already unfolding in San Francisco because retiring baby boomers (those born between 1946-1964) own nearly half of all small businesses. Statistics show that six out of 10 will try to sell their business in the coming decade, and many won’t find buyers.
In this webinar, we heard from about the benefits of employee ownership from Donna Sky and Miyaka Cochrane from Project Equity.
Employee ownership increases engagement, dedication and ingenuity, which are key to business success, especially during this uncertain time.
Employee Ownership Provides Many Benefits to the Business and the Owner
- Preserves legacy in the community
- Provides a good sale price
- Owner can stay involved if desired following the sale
- Creates more worker stability and lowers turnover
- Grows employee engagement and productivity
In 2020, Optimax became an Employee Ownership Trust (EOT). Read about their story and why an EOT made sense to them.
When either is in crisis, both suffer. But there’s a fix.
Project Equity has partnered with the San Diego Workforce Partnership to host community workshops and help to make financing available for San Diego businesses to transition to employee ownership.
Steve Storkan, the Executive Director of the Employee Ownership Expansion Network (EOX) and his staff members have been very busy expanding the network of state centers for employee ownership.
Over the next decade, engaging and activating policymakers to advance employee ownership will be key to addressing income, wealth and racial inequality at scale.