Why Ownership Matters
Ownership contributes to determining who benefits most from the wealth generated from an asset.
Significant attention among practitioners and policymakers is often given to promoting local ownership through initiatives such as ‘buy local’ campaigns and social procurement policies that encourage spending with local business, where permitted under trade agreements. But addressing the deep and growing wealth inequalities in our communities requires extending support beyond individual and family-owned local businesses.
The oncoming business succession wave represents a significant threat to local ownership of the economy. It is estimated that 76% of small- and medium-sized enterprise (SME) owners in Canada will exit their businesses in the next decade with only 1 in 10 reporting they have a succession plan in place. The threat is amplified in a context where we are already seeing significant industry consolidation across the Canadian economy and increasing interest among distant, private equity investors in smaller deal sizes.
Community ownership allows a broad group of people (e.g., employees, customers, producers, citizens) and organizations (e.g., nonprofits and charities) to “exert control over some of the most fundamental aspects of shared life within communities – such as employment conditions, investment, and the direction for future economic development.” (Democracy Collaborative, 2019).
