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Is a worker's cooperative an effective means for transferring SMEs?

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  • Marie-Christine Barbot-Grizzo

    (ARGUMans - Laboratoire de recherche en gestion Le Mans Université - UM - Le Mans Université)

Abstract

This chapter discusses the context and current development of worker cooperatives, their structure, and legal framework; analyses the economic and human context; and specificities of business transfers to worker cooperatives. Worker cooperatives, the main focus of this chapter about businesses transfers, are the only cooperatives in which the majority of capital is held by employees/workers. A worker cooperative was created to transfer the business in less than 12 months without distinguishing ownership and management transfers. However, decisions made before and during the transfer process, including choices regarding the general management and ownership structure, are critical and depend on the context, motivations, expectations and objectives of the parties involved in the transaction. The fear, the lack of motivation of certain actors, a centralised management style and a bad social climate are also potential obstacles which need to be overcome.

Suggested Citation

  • Marie-Christine Barbot-Grizzo, 2020. "Is a worker's cooperative an effective means for transferring SMEs?," Post-Print hal-05236186, HAL.
    • Handle: RePEc:hal:journl:hal-05236186
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