Description: The Corona virus is just one of the things shaping the economy. Another factor is the sale of businesses by older entrepreneurs as they transition towards retirement. Jon Shell, a co-founder of SaveSmallBusiness.ca, argues that Canada should join Britain and the United States to create employee ownership trusts, a strategy to transfer businesses to employees and keep them in the communities they did so well in for so many years.
Date: November 12, 2020
1) Were you familiar with the concept of employee ownership trusts?
2) What do you think our nation could do to encourage ongoing local ownership of companies?
3) Chapter 11 in Wiley’s Financial Accounting: Tools for Business Decision-Making begins with the story of the Leon family and how the company transitioned following the death of its founder. Do a bit of online reseaerch to determine whether or not the Leon family is still involved in the ownership today.
Hayley Smith, Lauren Simmons
1) We were not familiar with the concept of employee ownership trusts, neither of us had heard of it.
2) Our nation could indulge in the employee ownership trust this would encourage ongoing local ownership of companies because this way they can sell their companies at fair market value to their employees.”Employee ownership helps preserve businesses in local economies because companies owned by local employees are more committed to protecting and creating local jobs”.
3) The Leon family is still involved in the ownership today.
Pushkaraj Jadhav, Su Young Kwon, Justin Leblanc
1) Our group was not familiar with the concept of employee ownership trusts. We first heard of it through the given article.
2) Canada can also adopt the tool of employee-ownership trusts, like the US and Britain do, to encourage ongoing local ownership of companies. Employee-ownership trusts allow owners to sell their companies to employees at a fair market value, without having the employees to invest their own savings, avoiding financial burden. The article also states how employee ownership promotes the preservation of businesses in local economies, as companies owned by local employees are more committed to protecting and creating local jobs.
3) The Leon family is still involved in ownership to date.