UNCC Econ Prof Discusses Strategy For The “Silver Tsunami”
One way to preserve local businesses and community wealth is through employee ownership. Employee ownership is a concept which can benefit owners, employees, and their communities. Instead of selling small businesses to outside investors or corporate developers, business owners can sell their companies to employees.
What benefits does employee ownership have for a community? How does this trend affect the racial wealth gap? Matthew Metzgar, clinical professor of economics at UNC Charlotte, analyzed employee ownership and its effect on business owners, employees and the communities they serve.
“The issue facing Mecklenburg County is the same issue that counties are facing nationwide: there is an upcoming wave of business owner retirements, says Dr. Metzgar. “This retirement of the Baby Boomer owners is often referred to as a “silver tsunami”. When these owners retire, employee ownership should be considered as a one potential exit strategy.”
“Employee ownership is when the employees themselves own the business, as opposed to a single owner or a corporate structure. Employee ownership generally takes three forms: worker cooperatives, Employee Stock Ownership Plans and Employee Ownership Trusts.”