Otto Bremer Trust Grant to Support BIPOC Companies
Employee Stock Ownership Helps Generate Wealth Equity, Protects Jobs Through Business Ownership
Minneapolis, MN - December 21, 2021 – The Minnesota Center for Employee Ownership (MNCEO) has been awarded a $30,000 grant from the Otto Bremer Trust (OBT), one of the nation’s largest philanthropic organizations. The grant will be used by the MNCEO to support education and awareness efforts across the state of Minnesota on the benefits of employee ownership in creating wealth equity and economic stability, with a focus on educating community leaders and business owners within the black, indigenous, and people of color (BIPOC) communities.
“This funding from the Otto Bremer Trust enables us to increase awareness of the powerful benefits employee ownership can offer businesses located in communities of color, empowering owners to create more rewarding, secure workplaces and help their employees generate personal wealth. It is critical that we get information on employee ownership out now as approximately 52,000 business owners in MN who are age 55 or older are all beginning to retire and ultimately sell or close their companies, ” said Sue Crockett, Executive Director of MNCEO. MNCEO is one of ten State Centers for Employee Ownership created by the Employee Ownership Expansion Network (EOX) since launching in 2019.
According to a study conducted by the Institute for the Study of Employee Ownership and Profit Sharing at the Rutgers University School of Management and Labor Relations, increasing access and inclusion in employee stock ownership plans (ESOPs) can play an important part in reducing the racial wealth gap. ESOPs help employees build financial assets without taking from their paychecks, enabling them to contribute to retirement and transfer wealth to their children. The study found that women and people of color participating in ESOPs had larger savings than those who worked in a traditional business. Other research shows that employee-owned firms tend to offer higher-paying jobs, better benefits, increased job security, and improve economic resiliency in communities.
“Employee ownership rewards employees and helps them meaningfully participate in their business while at the same time providing quality jobs that remain rooted in their community, ” said Steve Storkan, Executive Director, EOX. “We are honored that the Otto Bremer Trust recognizes the importance of employee ownership and the value it offers all communities but especially the BIPOC communities of MN and we are grateful for their support.”
To support the work of MNCO or to inquire on how you can support this grassroots movement visit https://www.mnceo.org.
“Employee ownership is an important resource and we believe that MNCEO has the potential to make a difference in building wealth in Minnesota, including in historically marginalized communities that have been previously shut out from business ownership,” said Daniel Reardon, Co-CEO and Trustee, Otto Bremer Trust.
About the Minnesota Center for Employee Ownership
The Minnesota Center for Employee Ownership is a 501(c)(3) non-profit organization founded in 2019. Its mission is to engage business owners, their advisors, community leaders, and state and local government officials about employee ownership as a way to preserve businesses, provide local quality jobs, strengthen the community’s economic resiliency, and create equity and wealth for all employees regardless of their race, ethnicity or education. To learn more visit, https://www.mnceo.org.
About the Employee Ownership Expansion Network
The Employee Ownership Expansion Network (EOX) is a 501(c)(3) non-profit organization founded in Philadelphia, PA in 2018. Its mission is to significantly expand employee ownership in the United States by establishing and supporting a network of independent non-profit Centers for Employee Ownership. EOX has provided funding and technical assistance to support the opening of ten state centers for employee ownership. The organization aims to help create one million new employee-owners by 2025 by having at least 70 percent of the US population living in a state with a center for employee ownership. To learn more, visit https://www.eoxnetwork.org.
Media Contact
Shannon Wojcik
585-831-6267
shannon@rkgcomms.com