Title
Authorizing the Committee on Commerce & Economic Development to hold hearings regarding initiatives to support employee ownership, including as a retirement strategy for small business owners.
Body
WHEREAS, Retiring owners might be able to avoid closing their businesses by selling partial or complete ownership of the company to their employees, maintaining commercial corridors, preserving jobs, and building wealth in our communities; and
WHEREAS, Individuals born between 1946 and 1964, known as "baby boomers", comprise a disproportionate share of America's small business owners, and are increasingly struggling to sell or transfer ownership of their businesses as they reach retirement age, forcing them to close their otherwise profitable businesses; and
WHEREAS, There are multiple employee ownership succession strategies that a retiring business owner and their employees may consider, including worker cooperatives and employee stock option plans; and
WHEREAS, Worker cooperatives, or co-ops, are businesses equally owned and governed by their employees, operating within a multitude of industries, including food services, construction, cleaning, and other services; and
WHEREAS, Worker co-ops are mission driven organizations that focus on issues being priotized by City government, including the provision of Keystone Stars childcare, bringing healthy food to low income neighborhoods, building wealth for immigrant communities, and facilitate job training for returning citizens; and
WHEREAS, Worker co-ops are more likely to stay in business after five years compared to other businesses, and have strategies to avoid layoffs during periods of economic recession; and
WHEREAS, As mission-driven companies focused on increasing the quality of life of the community, worker co-ops are generally more environmentally conscious and efficient than comparable businesses in the same industries; and
WHEREAS, An employee stock option plan, or ESOP, allow...
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