Employee Ownership: What It Is & What It Can Achieve

Abstract

The idea of employee ownership is not new and has existed since at least the mid-19th century. Yet, it remains a lesser-known business model in the economy at large. There are many myths and misunderstandings around what employee ownership is, and what it can achieve. We address these misconceptions by reviewing a growing body of research that contrary to common assumptions demonstrates that employee ownership garners broad political support, individuals working at employee-owned companies experience a higher level of economic well-being, and firms who adopt its varied models have better performance outcomes. The goal of this chapter is to provide academics, economic development officials, and business owners a solid, evidence-based understanding from which to explore, and put into practice, employee ownership.