Have a go at this teaching activity, which includes a downloadable worksheet and suggested answers

Oregon-based business sold to 30-strong workforce.

Tricia Salcido, founder of Softstar Shoes, transferred ownership to her staff using an Employee Ownership Trust (EOT). She worried that a corporate buyer would seek to move production abroad.

Since the handover, employee engagement has improved, with workers actively suggesting ideas to improve the business.

Around six million American small businesses are owned by ‘baby boomers’ (people born between 1946 and 1964) who are approaching retirement.

Many are struggling to find buyers and some are choosing to sell to their employees.

William Stockwell made a decision to use an Employee Stock Ownership Plan (ESOP) when selling his family’s manufacturing firm. Worker co-operatives are a third option, allowing employees to buy-in directly.

Research shows employee-owned firms tend to be more productive, pay higher wages, and are less likely to make staff redundant. When workers have a stake in the business, they are more motivated.

However, these models can be complex to set up, and many owners do not know they exist. The US government is now actively trying to promote and simplify the process.