University of Minnesota Extension Research Provides Insights on Rural Business Owners

There are interesting and helpful resources and research coming from Michael Darger and others at the University of Minnesota Extension program. Most recently, they conducted a rigorous survey of the state’s business owners that offers real insights into how employee ownership fits into their plans.

University of Minnesota Extension has provided research and education to communities on business retention and expansion (BRE) for many years. Their assistance helps keep these businesses open when owners or leaders move on, which is vital, especially in rural communities. As they point out, this is a fundamental part of economic development because most new private-sector jobs are attributable to existing businesses.

Their survey explored Minnesota business owner awareness, attitudes, aspirations, and actions on succession and transition planning. Some highlights from the findings include:

• Accountants were the most cited sources for advice on business succession.
• Business financial success after transition is rated highest in importance when planning for succession and transition.
• A large majority of these business owners spend very little time on their succession and transition planning, on average an hour or less per week.
• There is much room to grow knowledge of ESOPs as an internal transition option.

You can read more about the findings at their research site.