However, our journey has taught us the importance of listening and adapting. The core of entrepreneurship is learning from the market and being responsive to the needs of those we aim to serve. As we engaged with dozens of small business owners, we realized that while sustainability is crucial, there was a more pressing concern that needed our attention.
Through conversations with small business owners and workers, we discovered that the primary concern for retiring business owners wasn't the selling price of their business, their retirement, or their carbon footprint; it was the continuity and success of their businesses post-transition. Whoa! This insight was eye-opening and led us to reevaluate our focus.
Our research Search Funds highlighted a trend towards wealth consolidation—something we initially ignored by prioritizing sustainability initiatives. However, as the Silver Tsunami—the largest wealth transfer in human history—progresses, it has become clear that we are better poised to influence a different type of societal shift.
We recognized early on that employee ownership could address concerns around Silver Tsunami leadership succession at the time of the business transaction. Employee ownership not only ensures business continuity but also democratizes wealth and enhances community resilience. It seemed that a small business investor could be most supportive by leveraging the strengths within a given company at the time of leadership transition, rather than attempt to implement new initiatives.
We learned that employee ownership is particularly out-of-reach for smaller enterprises, which represent the majority of U.S. businesses and employ about half of all workers. These businesses often find the prospect of transitioning to employee ownership daunting due to perceived high costs and complexity. Here, we saw not just a challenge but an opportunity—to fill the gap and support these small businesses in making a transformative change.
This pivot was made possible thanks to the foundational support from Walking Softer, which provided us with a grant to explore various impact models. Their support enabled a year of research and development, allowing us to refine our approach and prepare for a meaningful impact.
As we move forward, we are committed to being a part of the growing employee ownership sector. We believe in learning as we grow, remaining open to the community's needs, and continuously seeking the most effective ways to support small businesses through significant transitions.
The shift from focusing primarily on environmental sustainability to promoting employee ownership does not mean abandoning our commitment to the environment. Instead, it represents an evolution towards integrating these values into a broader, more holistic approach to business transitions. By focusing on employee ownership, we aim to address income inequality, generational wealth gaps, and create a more equitable economy.
We invite our community, investors, and fellow entrepreneurs to join us in this exciting phase of our journey.