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
A Job Quality Agenda for the Next Administration was written by The Aspen Institute Job Quality Fellows urging policymakers to build an agenda for economic recovery focused on job quality and economic inclusion.
The City of Santa Clara launched an initiative to assist locally-owned businesses that are at risk of closure to learn about the option of employee ownership.
2021 is a new year, and a great time to make a resolution to focus on succession planning.
Employee-owned companies have protected their workers’ jobs four times better than other firms and suffered fewer cuts to hours and pay during the COVID-19 pandemic, according to a new study.
On December 2, 2020, the Employee Ownership Expansion Network (EOX) and Project Equity announced their new partnership designed to amplify employee ownership models as ways to preserve small businesses, strengthen jobs and communities and address the acute need for local economic resiliency.