Who owns the economy matters, and there are workable, scalable ownership models that can keep more wealth in the hands of working people.
Canada is facing its largest-ever wave of business transitions, as baby boomers look to sell their businesses and retire. Over $2 trillion in assets will change hands in the next decade. Many businesses will be purchased by competitors or private equity buy-out funds, extracting wealth, enriching investors outside Canada and consolidating local economies.
There are alternatives.
Through years of coalition building and political advocacy, SCP helped bring Employee Ownership Trusts to Canada. Now led by Employee Ownership Canada, which we incubate and support, EOTs are poised to explode in popularity in Canada – securing entrepreneurs’ legacies, preserving local jobs and keeping companies Canadian-owned.
We are champions of the employee-ownership movement, and we are exploring other ownership ideas, like how to expand co-ops and not-for-profit conversions.
There are alternatives to the trends towards market consolidation and value extraction impacting smaller businesses. At SCP, we want to build an economy where more people are owners.
On this topic
The Alternative Exit podcast: Championing Employee Ownership Trusts to revolutionize wealth distribution
SCP Chair Jon Shell sits down with Andy Farquharson on The Alternative Exit Podcast to explore the transformative potential of employee ownership. Jon recounts how he advocated for Employee Ownership Trusts (EOTs) in Canada to address wealth inequality and business succession. He talks advantages of EOTs, from preserving a company’s legacy to fostering economic resilience in the workforce and reshaping both business culture and wealth distribution.
Overheard at Crowe Soberman: The EOT advantage
Crowe Soberman Audit and Advisory Partner Chandor Gauthier sits down with Jon Shell, Chair of Social Capital Partners and Board Member at Employee Ownership Canada. They dive into the benefits of Employee Ownership Trusts and get into the nitty gritty of how EOTs can support smooth business succession, boost equity and retention and safeguard business legacies.
Toronto Sun: Employee ownership trusts explainer
SCP Chair Jon Shell in the Toronto Sun on what Employee Ownership Trusts mean for business owners, the community and the broader economy
Employee ownership trusts: What they mean for Canadian business owners
A helpful summary of Employee Ownership Trusts that gives Canadian business owners and their advisors a simple (albeit not short) explanation about what they are, and why they should care.
Employee ownership trusts FAQs
Bringing EOTs to Canada has been a labour of love for a lot of people over the last few years. We’re deeply grateful to the government for establishing the policies we need for employee ownership to flourish here. Now that it’s real we can’t wait to see the community pick the idea up and run with it.
Budget 2024 unleashes unprecedented opportunities for employee ownership in Canada
After four years of research, engagement and advocacy, the federal government has finalized the legislative and tax structure for Employee Ownership Trusts (EOTs). Social Capital Partners and the Canadian Employee Ownership Coalition are grateful for the government's careful work to make EOTs an attractive option for business owners.
Unlocking the potential of employee ownership in Canada
In the US and the UK, employee-owned companies grow faster, pay better, are less prone to lay-offs or bankruptcies in economic downturns, and are more likely to keep jobs in local economies. Due to supportive public policy, EOTs are a popular structure for business succession in those countries and have generated significant wealth for front-line employees. Canada does not have a business structure comparable to the employee ownership trust (EOT).
Inclusive search fund concept paper
Search funds allow entrepreneurs without capital to buy small businesses. However, only an exclusive club can access the financing to do so and are often forced to re-sell their businesses. We’ve put a twist on the search-fund model to make it more inclusive and long-term.
Building an employee ownership economy
New research continues to demonstrate that employee ownership fosters economic resilience. As in previous economic crises, employee-owned companies were better at retaining employees and at maintaining hours and salaries throughout the pandemic. In a post-pandemic economic environment, the demonstrated benefits of increased employee retention and alignment by employee-owned companies will be even more important to support economic growth.
Taylor Guitars’ transitions to 100% employee ownership with support from the Healthcare of Ontario Pension Plan (HOOPP) and Social Capital Partners (SCP)
In a transaction that would be impossible for a Canadian company, the owners of North America's largest builder of acoustic guitars secure a sustainable future for their company and its employees.
