EMPLOYEE OWNERSHIP PROGRAMS
"To Own or Not to Own,
That is the Question"

Introduction

Diagram

Introduction

Several external and internal factors contribute to a successful EO program:

External Factors

• Objective Feasibility Study
• Planning
• Technical Assistance
• Adequate Resources
• Organization
• Good Timing
• Luck

Internal Factors:

• Managerial Expertise
• Finance Sources
• Participatory Governance Structure
• Union Support

Some of the factors external to the firm, such as luck, the economic developer has little control over the outcome.  Others, (i.e. objective feasibility study, planning, and technical assistance) however, provide a good opportunity for economic developers to contribute.

In general, the economic developer has less influence over the factors which are internal to the firm.  The most critical determinant of success is managerial expertise.  Economic developers can help in two ways with creating solid managerial expertise.  First, economic developers can facilitate the development of managerial capacity and skills within the firm's current employee base.  Alternatively, the economic developers can maintain a list of managers or consultants who possess not only management expertise, but also believe in the value of EO.

return to top of page

---

Diagram

return to top of page

---

Definition	Theoretical Justifications
History: US Context	Role of Economic Developer
Key Success Factors	Framework for Evaluation
State Agencies	Resources and Other Links