Employee Ownership and State Policy: North Carolina

In a report titled Down Home Capital, Patrick McHugh examines the current status and policy alternatives for North Carolina to minimize the disruption caused by the impending retirement of business owners:

North Carolina has the potential to turn a grave challenge into a transformative economic opportunity. Thousands of businesses could disappear over the coming years as baby boomer entrepreneurs enter retirement, threatening to deal a heavy blow to communities across the state. However, by helping many of these firms convert into employee-owned companies, we can keep their doors open, give workers an ownership stake into their economic future, and buttress local economies. [Page 2]

The report, published by the progressive North Carolina Justice Center, examines the number of business that are likely candidates for changes in ownership, compares employee ownership to other economic development strategies, summarizes the research on employee ownership, and discusses state-level policy approaches that would support employee ownership.