Employee Ownership as a Solution to the SME Succession Issue: An Analysis of Furniture Industry Conversions to Employee Ownership in the United States, United Kingdom, and France

Abstract

Small and Medium-sized Enterprises play a significant role in global economic development. Therefore, it is vital that these family and founder-owned firms survive well into the future. This research presents an empirical approach to the issue of SME succession in three countries: the United States, the United Kingdom and France. It focuses on how founder-owners - mainly baby boomers looking to retire and sell their firms – transfer ownership of these firms based on the options available in those respective countries. This paper will analyse SME furniture manufacturing firms over the period from 2013 to 2019 which converted to employee ownership. This is definitely one way of preserving a firm’s legacy, but offers no guarantee of success or even survival. Finally, my work is intended to go some way in supporting conversions to EO as a valid business model linked to more democratic ownership, continued legacy and firm survival for the benefit of all stakeholders, especially the employees and local communities. After all, employees are one of a firm’s greatest assets.