Making employee ownership work in startups and SMEs

Abstract

The adoption of employee ownership can lead to individual, company and economy wide benefits. It also provides opportunities for a more equal wealth distribution, higher levels of investments and more growth-oriented entrepreneurship. While employee ownership is growing and is promoted in many countries, The Netherlands is currently falling behind. We propose several options to increase the use of employee ownership in the Netherlands, including a change in the moment of taxation, a change in taxation levels and standardization of share valuation.