In central Minnesota, small businesses are not merely contributors to the economy; they are its backbone, fostering community spirit by sponsoring youth sports teams, supporting local churches and festivals, and providing stable employment that keeps families connected to the regions they cherish. However, as a significant number of local business owners edge toward retirement, the future of these vital community institutions appears increasingly uncertain.
As October celebrates Employee Ownership Month, it becomes essential to explore its implications for communities such as Brainerd, Little Falls, and Wadena. Employee ownership can manifest through employee stock ownership plans, worker-owned cooperatives, or employee ownership trusts, offering a viable and effective method to sustain local businesses while also honoring the contributions of the employees who have driven their success.
Drawing from my years of experience in community and business development, including my tenure as mayor of North Branch, I have witnessed firsthand the dedication of small business owners to keep their establishments thriving and their communities vibrant. Equally, I have seen the repercussions of businesses closing without a succession plan, emphasizing the need for sustainable solutions.
Adopting employee ownership not only ensures the continuation of a business but also preserves a legacy— safeguarding jobs, sustaining tax bases, and fostering local wealth circulation. Research supports the idea that employee-owned enterprises tend to experience faster growth rates, greater resilience during economic downturns, and significantly lower employee turnover compared to their traditionally-owned counterparts. Furthermore, employees in such organizations often enjoy higher wages and increased retirement savings, creating positive economic ripples within their communities.
The Minnesota Center for Employee Ownership, which was established in 2020, plays a crucial role in facilitating connections among business owners, employees, and advisors, providing access to valuable resources and tools. We are excited to collaborate with organizations like the North Central Small Business Development Center at Central Lakes College and the Central Minnesota Manufacturers Association to offer complimentary valuation and succession planning assistance to local entrepreneurs in our region.
When employees become stakeholders in ownership, they also share in the success of the business, which fosters a stronger, more unified community. By empowering this model, central Minnesota can look forward to sustaining growth and vitality for generations to come.