Gov. Jared Polis signed an to establish a commission to research and support employee-owned businesses on Wednesday.
The commission’s main focus will be to provide technical support for business owners to understand and convert to an employee-owned model. In employee-owned businesses, known as cooperatives or co-ops, workers can have voting rights in company decisions and can benefit from profit-sharing.
A record number of small business owners are reaching retirement age and when no clear successor is ready to take the helm, shifting to employee-ownership can be an alternative to keep businesses running. Small businesses are a large part of the Colorado economy, employing more than a million Coloradans, according to the release.
Colorado has long been a hub for cooperatives, The Denver Post previously reported. Many rural and agriculture supply companies were established as cooperatives along with and .
Polis has been a longtime supporter of employee-ownership. As a congressman, he was a member of the Congressional Cooperative Business Caucus and penned an in a local newspaper in support of cooperatives.
“Increasing employee ownership will help support a strong economy and promote job security in communities across the state,” Polis said in the release. “Supporting employee ownership has been a top goal and now we are taking the necessary steps to make it a reality.”