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45% of Aging Twin Cities Small Business Owners May Shut Down
Transitioning to employee-owned companies offers tangible solution to region's "silver tsunami"
By: Nexus Community Partners
Project Equity (http://www.project-
Alison Lingane, co-founder of Project Equity adds, "While it's important to draw attention to the data and its implications, it's necessary to also understand that we have a real possibility to sustain small businesses for the long term by transitioning some of them to broad-based employee ownership." Small businesses provide 47.9% of all private sector jobs in the Twin Cities region, so this ownership changeover risks not only the loss of local business ownership, but also job loss, and local business tax base. "Employee ownership is one of the best ways to keep thriving businesses locally rooted into the next generation."
The data presentation aims to make the business ownership changeover tactile and shows 26,000 privately-held businesses with employees—44.7%
"Considering the existing employment disparities between whites and people of color, it is clear that growing more employee-owned businesses is not only a viable solution, but a critical one," said Gaarder. She said the challenge and opportunity will be in educating stakeholders about the threat posed by small business owner retirements;
"Ask anyone living within the Twin Cities region, and they will tell you that we're currently facing income and wealth disparities at record levels. Coupled with the impending silver tsunami and limited success of workforce development initiatives, our communities are facing even greater challenges,"
For Nexus, business conversions to employee ownership are part of its community wealth building initiative that seeks to promote local and broad-based ownership and encourage economic practices rooted in cultural communities.
Page Updated Last on: May 26, 2017