David Addington, Executive Vice President General Counsel | National Federation of Independent Business - Michigan
David Addington, Executive Vice President General Counsel | National Federation of Independent Business - Michigan
The Michigan Department of Labor and Economic Opportunity (LEO), together with the Michigan Center for Employee Ownership (MICEO), has launched a $500,000 pilot program aimed at increasing employee ownership among businesses in the state. The initiative, announced on July 8, 2025, seeks to help small business owners who are approaching retirement but lack succession plans.
Employee ownership allows workers to gain an ownership stake in their company, often through stock or equity. This approach can help secure a business’s legacy while offering employees opportunities for wealth building and job security.
Many small business owners have not prioritized exit planning. According to national data, while 75% of business owners intend to leave their companies within the next decade, only 34% have formalized succession plans. As a result, less than one third successfully sell their businesses.
The new pilot program will provide funding for services such as feasibility studies, valuation assessments, legal support, and other resources necessary to evaluate employee ownership options. Those who apply but do not qualify will receive guidance from LEO on alternative steps.
“Employee ownership can be a great answer to that succession question. Through employee ownership, a small business can secure their legacy through workers gaining an ownership stake in the company, often through stock or equity. This also helps create an avenue for wealth building and job security for those employees who participate.”
“Exit planning is important not just for owners looking to retire, but for their small business and their community. It is something that has not been at the forefront of business owners’ minds. Nationwide, 75% of business owners plan to exit within the next 10 years, but only 34% have a documented and communicated succession plan. This leads to fewer than one third of business owners successfully selling their company.”
“This pilot program through the MICEO provides funding for feasibility studies, valuation services, legal services, and other support to assess the potential for employee ownership. Additionally, if you decide to apply but do not qualify for some reason, this department can help guide you through the process.”
More information about applying is available on the MICEO website.
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