How Big Is America’s Employee-Owned Economy?
By Thomas Dudley for Fifty By Fifty - Before we jump into EO, let’s take a look at the size of the American private sector. Each year, every business operating in our economy is counted by the U.S. Census Bureau. The results are summarized in the Statistics of U.S. Businesses (SUSB). According to the SUSB, in 2014 there were 5.8 million businesses employing 121 million Americans in the private sector. Not all of these businesses would be eligible to be employee-owned — for example companies setup by a lone freelancer. Looking at firms with at least 5 employees, we find 2.2 million businesses employing 115 million Americans. Now thinking about employee ownership, the most general notion of EO would include everyone who has any ownership stake in their place of work. There are numerous forms of ownership, but stock ownership is the core of American capitalism. After all, it is the stock owners who are entitled to a company’s profits and who elect the board of directors. If we define EO as encompassing everyone who owns at least one share of stock in their employer, we cast a wide net. This definition includes everyone from a low-level employee who owns a few shares in their 401k, to a partner at a law firm, to a CEO who owns 100% of their business. It’s reasonable to assert that over 99% of businesses in America employ at least one person who owns at least one share of stock.