Across the country, Baby Boomer-owned businesses - most of them healthy and viable - are closing rather than being sold, leaving an economic gap in vulnerable urban areas and rural
Across the country, Baby Boomer-owned businesses – most of them healthy and viable – are closing rather than being sold, leaving an economic gap in vulnerable urban areas and rural towns. These established businesses contribute to the economic activity and “lifeblood” of cities and regions.
A strategy that can help preserve these at-risk businesses is to convert ownership of the business to employees. It benefits everyone: it builds assets for employees, retains quality jobs – particularly among low-income workers and people of color – and positively transforms historically low-wage service sector occupations. Conversions are also a sound way to anchor successful businesses in communities, which drive local prosperity and ensure vibrant local economies.
In a recent report, Capital Impact Partners and the ICA Group, with support from Citi Community Development, outline the potential that converting small businesses to worker-owned cooperatives has to maintain economic viability in communities nationwide, help workers control their quality of life, and expand wealth building opportunities for those who need it most, particularly women and communities of color.
On October 16 and 17th, 2018, Capital Impact is hosting Financing Legacy Business Preservation, a convening about worker cooperative conversions in New York, NY. This event convenes national community development finance leaders including Community Development Financial Institutions (CDFIs), credit unions, and regional banks to explore how these stakeholders can help unlock the potential of employee ownership. Sessions will highlight the current ecosystem of lenders, feature owners who have sold their business to their employees, and explain the mechanics of financing transactions. An afternoon site visit will showcase a recently converted business in Brooklyn where employee owners will discuss their experiences and insights.
october 16 (Tuesday) - 17 (Wednesday)