As a member of the Project Equity team and a W. K. Kellogg Foundation Fellow of the Rutgers School of Management and Labor Relations, I am proud to share a new research brief I published with Rutgers’ Institute for the Study of Employee Ownership and Profit Sharing. The brief investigates the decision-making factors influencing Black small business owners considering transitioning to worker cooperatives.

Through in-depth interviews with eleven Black small business owners, I explored the impact that greater awareness of worker cooperatives might have on these owners’ choices as they plan their exits, whether due to retirement or other transitions. The report uncovers insights into how these business owners view succession, revealing key factors they consider when deciding whether to sell their business to a worker cooperative.

Several key findings emerged from my research. Succession planning had not been a primary focus for these business owners, though they anticipated that exiting their businesses would positively impact their personal finances. Many were unaware of worker cooperatives as a viable exit strategy and expressed a need for local, trusted professionals to provide technical assistance and guidance through the sale process. Additionally, the owners wanted a guarantee that the conversion to a worker cooperative would offer personal financial security, positive community impact and protection of their personal legacy.

This brief shines a spotlight on the unique challenges and opportunities for Black business owners exploring worker cooperatives as a pathway for succession. It also underscores the importance of access to information, capital and resources. These elements are essential to ensuring that Black small business owners can leverage worker cooperatives for sustainable, equitable business transitions, building enduring legacies in their communities.