Employee ownership keeps LA businesses thriving
Watch the webinar: Employee ownership keeps LA businesses thriving
Recorded on: Friday, November 20, 2020
This webinar discussed how employee ownership transactions are a succession strategy to keep businesses in Los Angeles.
Local business is at the heart of every community 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 Los Angeles. These COVID-related challenges are layered on top of an ownership succession crisis that was already unfolding 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 the following local leaders:
- Councilman Curren D. Price, Jr from Los Angeles City Council District 9
- Shawn Randolph 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.