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Why is employee ownership beneficial? What does the VEOC do? What has the VEOC accomplished? Who can benefit from employee ownership? What services and programs do you offer? Revolving Loan Fund Who is on the Staff and on the Board of Directors? Are the Center’s services free? How is the Center funded? The Vermont Employee Ownership Center is a statewide non-profit whose mission is to promote and foster employee ownership in order to broaden capital ownership, deepen employee participation, retain jobs, increase living standards for working families, and stabilize communities. Why is employee ownership beneficial? Employee ownership is a proven means of preserving local ownership of companies and the jobs they support, fairly sharing equity, boosting productivity, and improving the quality of work life. There are now over 9,000 companies in the U.S. with Employee Stock Ownership Plans or equivalent plans, hundreds of worker cooperatives, and thousands of companies with some other form of employee ownership. Introducing employee ownership into a business is a complex undertaking, and instituting the cultural changes necessary to make employee ownership meaningful requires a significant commitment of resources and energy. But since 1974, when federal legislation was passed that provided a legal framework for ESOPs, a strong infrastructure supporting employee ownership has developed. The VEOC is part of that infrastructure and we are here to support the needs of Vermont businesses and communities. There are currently close to 40 Vermont-based companies that are at least partially employee-owned, including many with familiar names: Gardener’s Supply Company, King Arthur Flour, Merchant’s Bank, Carris Reels, Chroma Technology, Hill Associates, Hallam Associates, The Trust Company of Vermont, Homestead Design, and Lane Press. "Extensive research has proven that employee-owned businesses out-perform and are more sustainable than their competitors in the same industries. There couldn’t be a better time to give Vermonters back control of their economic future with a proven model of business ownership: employee ownership," says the Chair of the Center’s Board of Directors, Cindy Turcot of Gardener’s Supply Company. A survey published in the ESOP Report (August 2003) revealed that ESOP companies outperformed the three major stock indices in 2002: the Dow Jones Industrial Average, the NASDAQ composite, and the S&P 500. This means “once again that the decision to become employee-owned through an ESOP means better company performance and greater wealth creation for the employee owners.” (ESOP Report 8/03).What does the VEOC do? VEOC provides information and resources to owners interested in selling their business to their employees, employee groups interested in purchasing a business, and entrepreneurs who wish to start up a company with broadly shared ownership. What has the VEOC accomplished? Education and outreach Since 2003, the VEOC has presented annual full-day conferences on employee ownership. These are aimed at employee-owners in established employee-owned companies, business owners considering employee ownership, and people interested in the potential of employee ownership to preserve jobs and stabilize communities. Our fifth annual conference is being planned for June 5, 2007, with Corey Rosen, the Executive Director of the National Center for Employee Ownership, as keynoter. The VEOC has also presented three half-day seminars for business owners on ownership succession (December 2002; March and April 2006), and will be presenting a series of these seminars in 2007 and 2008, in partnership with the Vermont Small Business Development Center.
Work with owners interested in selling to employees The VEOC has provided direct assistance to owners of 44 Vermont businesses, with a total of 981 employees. As mentioned above, many other owners have attended our educational events. Some recent activity in this area:
Work with employees interested in purchasing a business or starting a new one The VEOC has provided direct assistance to groups representing a total of 354 employees in 14 companies interested in the possibility of buying the business in which they work. In addition, in 8 plant closing situations, we helped groups representing a total of 636 employees explore the possibility of a buyout. We have also provided advice in 16 cases to entrepreneurs interested in starting a company with broadly-shared ownership. Recent highlights:
Future focus and emphasis As awareness of the possibilities of employee ownership (EO) increases, and as early contacts with businesses begin to generate action, we expect to focus over the next several years on: expanded workshops and seminars, more emphasis on working with established EO companies to assure their continued success, the development of peer networks of EO companies, the completion of more business conversions to EO, greater outreach efforts and more extensive work with other economic development groups, chambers of commerce and educational institutions. Who can benefit from employee ownership?
We offer services that range from conceptual information to hands-on assistance, to anyone interested in exploring or implementing employee ownership. Outreach:
The VEOC has a new revolving loan fund to assist in the conversion of a business to employee ownership or help finance existing employee-owned companies. To learn more click here: Employee Ownership Loan Fund. Who is on the Board of Directors? We have been privileged to gather a diverse group of people who are knowledgeable and enthusiastic about the concept of employee ownership in Vermont. They represent employee-owned companies, economic development offices, educational institutions, labor and sustainability organizations that are endeavoring to create and diversify employment opportunities in Vermont.
Staff: Jon Crystal, Executive Director Don
Jamison, Program Director
We are funded through government and foundation grants, and contributions from individuals and businesses. The VEOC is a tax-exempt non-profit educational organization. We are always grateful for contributions and in-kind donations. This project is funded by a grant from the U.S. Small Business Administration (SBA). SBA’s funding should not be construed as an endorsement of any products, opinions, or services. All SBA-funded projects are extended to the public on a nondiscriminatory basis.
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