Bill Overview
Title: Improving SBA Engagement on Employee Ownership Act
Description: This bill expands the Small Business Administration's outreach activities with respect to cooperatives or employee ownership of small businesses.
Sponsors: Rep. Phillips, Dean [D-MN-3]
Target Audience
Population: People working in or owning small businesses considering cooperatives or employee ownership
Estimated Size: 15000000
- The bill specifically targets small businesses considering cooperatives or employee ownership.
- There are several million small businesses in the U.S. as per latest census data.
- Globally, businesses considering shift to cooperative or employee ownership models may look at this initiative even if not directly included.
- Employee ownership is popular globally in several sectors like tech, manufacturing, retail, and services.
Reasoning
- The policy targets a niche segment of small businesses contemplating a shift to cooperatives or employee ownership.
- Considering the budget allocation, it will primarily affect businesses already leaning towards such structures.
- The impact will vary based on geographical regions and industries where employee ownership is more prevalent.
- Given the commonness scale, individuals like business consultants or owners in specific high-impact zones like tech and manufacturing hubs may feel the change more prominently.
- Whereas employees in businesses not near any transition to employee ownership won't see changes, hence 'none' impact for some individuals.
Simulated Interviews
Small Business Owner (New York, NY)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- I think employee ownership could be beneficial for my team in terms of motivation.
- The policy could provide the resources we need to explore this transition.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 7 |
Employee (Boulder, CO)
Age: 32 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 9/20
Statement of Opinion:
- The policy sounds like it would strengthen the cooperative model we're part of.
- I'm curious to see how more support from the SBA could benefit our operations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 5 |
Industrial Worker (Detroit, MI)
Age: 59 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- I'm hopeful this policy will make the transition smoother and safer for us.
- With more guidance, ownership could become a reality for my colleagues and I.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Business Consultant (Atlanta, GA)
Age: 27 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- This policy could expand my client base significantly.
- With more businesses interested in employee ownership, demand for my services may increase.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 10 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 7 |
Tech Entrepreneur (San Francisco, CA)
Age: 40 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- Employee ownership is intriguing, but not immediately relevant to us.
- The policy seems well-intentioned but likely won't affect our current plans.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 8 | 8 |
Owner of a Small Retail Business (Austin, TX)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- I'm not sure how employee ownership can apply here.
- I hope this policy provides clearer guidance on its benefits for smaller, family-owned stores.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 6 |
Employee (Portland, OR)
Age: 36 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 7.0 years
Commonness: 14/20
Statement of Opinion:
- I think collective employee interests could be represented better.
- This policy seems like a step towards empowering workers.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 5 |
Medical Practice Manager (Chicago, IL)
Age: 42 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 17/20
Statement of Opinion:
- We're considering employee ownership to increase staff retention.
- Guidance from the SBA could significantly ease this transition.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 7 |
Retired (Seattle, WA)
Age: 55 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 1.0 years
Commonness: 18/20
Statement of Opinion:
- Though retired, I see how these policies could've helped when I owned a business.
- I'm interested in how such measures influence future generations of entrepreneurs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Employee (Phoenix, AZ)
Age: 29 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 11/20
Statement of Opinion:
- I'm not too familiar with employee ownership impacts.
- It seems promising for employee benefits, but remains to be seen in practice.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 4 | 4 |
Cost Estimates
Year 1: $15000000 (Low: $12000000, High: $18000000)
Year 2: $15000000 (Low: $12000000, High: $18000000)
Year 3: $15000000 (Low: $12000000, High: $18000000)
Year 5: $15000000 (Low: $12000000, High: $18000000)
Year 10: $15000000 (Low: $12000000, High: $18000000)
Year 100: $15000000 (Low: $12000000, High: $18000000)
Key Considerations
- The scale of outreach will determine the level of impact and cost.
- There needs to be coordination with local organizations, chambers of commerce, and business advocates for effective outreach.
- Potential legislative changes to enhance employee ownership structures could affect the program's success and future budget requirements.