What's Happening?
The city of Durham, North Carolina, has launched a new initiative called 'Keep It Durham-Owned,' aimed at helping local business owners transition their companies to employee ownership. This campaign seeks to provide resources and tools for succession
planning, offering alternatives to selling to larger corporations, private equity firms, or closing down. The initiative was officially launched on September 14 at Provident1898, the historic headquarters of North Carolina Mutual Life Insurance. City officials, non-profit partners, and existing employee-owned businesses gathered to celebrate the program's commencement. The core initiative is set to run through the end of 2027, with ongoing technical assistance and resources available permanently. This program builds on previous efforts, including Durham's participation in the Shared Equity in Economic Development (SEED) Fellowship in 2018, which focused on legacy Black-owned businesses.
Why It's Important?
This initiative is significant for the economic stability and cultural preservation of Durham. With over a third of the city's legacy businesses having aging ownership without concrete succession plans, the 'Keep It Durham-Owned' campaign offers a vital solution to prevent these businesses from leaving the community or ceasing operations. Employee ownership models, such as Employee Stock Ownership Plans (ESOPs), Worker Cooperatives, and Employee Ownership Trusts, are designed to keep economic benefits within the local economy. According to Mayor Leonardo Williams, when residents shop locally, approximately 41 cents of every dollar remains in the community, compared to 14 cents at national chains. This program aims to strengthen local economic resilience, preserve Durham's unique cultural identity, and empower employees by giving them a stake in the businesses they help build.
What's Next?
The 'Keep It Durham-Owned' initiative will continue to offer free advising and mentorship to interested business owners through its partnership with the North Carolina Employee Ownership Center and the Democracy at Work Institute. The program, housed within the city’s Office of Economic and Workforce Development, is one of three pilot cities for this type of partnership, alongside Raleigh and Cincinnati. A key next step involves building a robust network of service providers, including advisors, accountants, and attorneys, who are familiar with employee ownership structures to facilitate successful transitions. The goal is to demonstrate the effectiveness of this model, potentially leading to expanded funding and dedicated staff within the Office of Economic and Workforce Development to support employee ownership as a core component of the city's economic development strategy.
Beyond the Headlines
Beyond its immediate economic benefits, the 'Keep It Durham-Owned' initiative addresses deeper societal and ethical considerations. It promotes a more equitable distribution of wealth and power within the local economy by empowering employees to become owners, fostering a sense of shared responsibility and investment in their workplaces. This model can lead to increased employee engagement, productivity, and retention, as workers directly benefit from the company's success. Furthermore, by preserving local businesses, the initiative helps maintain the unique character and cultural fabric of Durham, preventing the homogenization often associated with corporate takeovers. It also serves as a testament to Durham's rich history of Black business ownership, building on a legacy of community-centric economic development and offering a sustainable path forward for diverse enterprises.
