The use of employee ownership structures as strategies for the resilience of smaller entities in the US

Adebiyi, Oritsemolebi and Adeoti, Mayowa and Mupa, Munashe Naphtali (2025) The use of employee ownership structures as strategies for the resilience of smaller entities in the US. International Journal of Science and Research Archive, 14 (1). pp. 1002-1018. ISSN 2582-8185

Thus, the use of employee ownership schemes has been identified as a strategic model contributing to increased reliability and longevity of small-scale enterprises in the USA. Schemes like ESOPs, worker cooperatives, and profit share arrangements help in synchronizing the objectives of the employees and the business to enhance organizational performance using motivation, creativity, and continuity (Sied, 2024). In this paper, the author aims to discuss how the concept of employee ownership significantly contributes to resilience based on support from coping data and real-life examples. Even though there are certain issues concerning financial and cultural barriers to adoption, employee ownership can play a major role in developing succession plans, employee motivation, and competitive advantage. Government incentives like tax incentives and technical assistance also enhance the movement toward these practices (Vukadinović et al, 2015). Drawing upon historical antecedents, legal provisions, and present-day practices about employee ownership, this paper points to its capacity to build organizations that are resilient, innovative, and sensitive to the community’s needs – executives that could thrive despite economic turmoil (Iherobiem, 2023). The study also underscores the innovative nature of employee share ownership by highlighting notions of equity and resilience in the future of smaller businesses.