Employee Share Ownership Plans: Harnessing Alberta’s entrepreneurial spirit

Alberta’s small businesses are struggling to recover from both rising supply chain costs and increasing overhead costs including utilities, leasing, and wages. Compounding this problem for some businesses is their inability to pay back CEBA and other Covid-19 business assistance loans before interest began to accrue. There is a unique opportunity to have Albertans, and the many thousands of newcomers to the province, invest in their employers and stabilize businesses. However, unlike other provinces, no personal tax incentives exist in Alberta for employees looking to invest in their employers.

The lingering effects of the Covid-19 crisis have unevenly impacted Alberta’s small businesses. Statistics Canada’s Impact of COVID-19 on Small Businesses in Canada, Third Quarter 2020 shows that small businesses were more likely to experience a decrease in revenue and have less liquidity, and were more likely to be unable to take on more debt and to be considering bankruptcy in the current economic environment. And, while half of all Canadian businesses reported a revenue decrease, it was more likely for smaller businesses to report a revenue decrease of 40% or more.