Employee-Owned Companies: Where are the Impact Investors? – Locavesting

Employee-owned ventures are productive, resilient and have the potential to lessen the wealth gap. So why aren’t impact investors interested?

Sourced through Scoop.it from: www.locavesting.com

To be successful, every company needs investors, loyal investors that will provide more value and money to the company as it grows. The investors I speak of are not the typical business investors, but those which work at the company itself: that’s right, a company owned by the employees. But why would anyone want that?

“Employee-owned business ‘are more connected to their communities, better for their workers, and are measurably more stable and productive than traditional investor-owned corporations,’ ” said this Locavesting article.

Yes, this idea was reiterated in the article by Mary Ann Beyster – the president for the Foundation for Enterprise Development – when she was quoted saying, “Companies with meaningful ownership and participation by employees tend to be more competitive, more resilient during economic downturns and less likely to move out of their communities.” Therefore, if employee-owned businesses are so great, where is their great amount of support, the article asks. A report by Fifty by Fifty says, “there are a great many reasons, ranging from a lack of knowledge and a perception of sub-par returns, to a lack of infrastructure for impact investors.”

Some solutions to this problem of not enough investors, then, is making sure people know enough about employee-owned businesses and that kind of enterprise. Also, an easier way to enter into employee investment can be made. All this would facilitate the growth of employee-owned businesses and eventually the growth of communities surrounding them.