Georgia Center for Employee Ownership’s (GACEO) Executive Director Marie Davis and Local Outreach Coordinator Matthew Epperson kicked off the campaign on May 23rd at the UGA Delta Innovation Hub. The event hosted guest speakers from the U.S. Small Business Administration (SBA), UGA Small Business Development Center, and multiple local employee-owned business leaders. 

Special guest speakers included: 

• Melanie Bryant, Lender Relations Specialist, SBA

• Michelle Griffith, Vice President, JOMA Construction

• Mackenzie Gallagher, Director of People & Culture, JOMA Construction

• Judith Winfrey, Worker-Owner, Love is Love Cooperative Farm

• Jennell Taylor, Access to Capital Specialist, SBA

• Doug Huemme, Area Director, UGA SBDC

• Shea Smith, Sheridan Construction

“The vibrant and creative small business community makes Athens a great place to talk about employee ownership,” said Epperson, while also noting the urgency for succession planning for Athens’ many Baby Boomer-owned businesses. 

The city’s first task force on employee ownership plans to educate 75% of the estimated 1,032 Athens-Clarke County business owners over the age of 50, as well as their advisors and community leaders, on the benefits of employee ownership.

Baby Boomers currently own nearly half of the privately-held businesses in America, and while some will be passed down to family members, many are expected to wind up on 3rd party broker websites. Once there, they can be sold to external groups including strategic buyers and private equity firms which, Epperson notes, often saddle the business with excessive debt, lay off workers, close down or move operations elsewhere. 

Employee ownership offers a solution to the so-called “marketability problem” of stable small businesses which could not support such debt. But there are desirable and responsible buyers, GACEO contends, in the tenured employees of small businesses. 

One focus of the Athens campaign is educating business owners and advisors on employee stock ownership plans (ESOPs), which are the most common form of broad-based employee ownership in the U.S. There are nearly 7,000 such ESOPs with over 15 million participating employee owners – the largest single example of which is Publix Supermarkets. There are over 150 employee owned companies across Georgia.

“The employee ownership task force is a groundbreaking initiative that will empower Athens’s small businesses and drive economic growth. Let's seize this opportunity to embrace employee ownership and secure a prosperous future for Athens” said Athens-Clarke County Mayor Kelly Girtz. 

The employee ownership task force has been funded by ARPA dollars earmarked for economic development by Athens-Clarke County. An original economic development committee assembled by Mayor Girtz and co-chaired by Commissioners Tiffany Taylor and Carol Myers began meeting in March 2024 with a mandate that specified: “Special consideration should be given to addressing the needs of workers, including, for example … the development of co-operative and worker-owned businesses.” The ARPA economic development committee met bi-monthly from March to June.  Upon the recommendation of the committee, the mayor and commissioners approved the proposal to fund $150,000 to this campaign during their September 17th, 2024 meeting. 

The employee ownership task force includes a diverse group of business leaders and professionals including local business owners, local employee owned company leaders, business brokers, financial advisors, UGA faculty, a representative from the Northeast Georgia Regional Commission’s business retention and expansion unit, as well as Georgia Center for Employee Ownership board directors.

Epperson and the EO Task Force are inviting all business advisors (e.g., CPAs, attorneys, exit planners, financial advisors) and other influential business owners to participate in the Employee Ownership Ambassador Program: a series of seminars designed to more thoroughly introduce local leaders to three major forms of employee ownership. These seminars will be offered both in person and virtually every Thursday in September from 1:00 to 2:00 PM and are free to attend. Interested parties may register for the Ambassador Program at athens.gaceo.org. 

Employee Ownership Ambassador Program (Free, 1–2 PM each Thursday in September):

• September 4th: Introduction to Employee Ownership

• September 11th: Employee Stock Ownership Plans (ESOPs)

• September 18th: Worker Cooperatives

• September 25th: Employee Ownership Trust (EOTs)

There are already numerous companies operating in and around Athens that are either partially or fully employee owned, including but not limited to: JOMA Construction, Home Outlet, Terracon, Augusta Industrial, AMBAC International, Georgia Spa, Love is Love Co-op Farm, and Peachy Green Clean Co-op. 

The Athens EO Project joins other successful and similar programs that have been launched in other parts of the country such as in Pittsburgh, New York City, Cleveland, Durham, Atlanta, and more.

“Employee Ownership is a win-win for selling business owners, employees, and the Athens community.” Epperson said. At the Empowering Employee Ownership event at UGA, Michelle Griffith, Chief Financial Officer at JOMA Construction also said “When employees start having an owner mindset, it benefits the business both in the short and long-term.”

Alongside the Ambassador Program, the Athens campaign is extending its reach through email, radio, Linkedin and other social media channels. With the support of city officials, nonprofits, and business advisors, the Athens Employee Ownership campaign hopes to not only preserve locally-owned businesses but also build long-term wealth and stability for the city’s workers.

To learn more about this initiative, or register for the EO Ambassador Program, visit athens.gaceo.org, and follow the Georgia Center for Employee Ownership on LinkedIn.

Media Contact: Matthew Epperson, Athens Local Outreach Coordinator

[email protected] | (706) 612-3881