What to Know About Wisconsin SB21: A Big Step Forward for Employee Ownership

Employee ownership has long been a proven way to strengthen businesses, retain jobs, and build wealth for working families. Wisconsin Senate Bill 21 (SB21) is an important piece of legislation designed to remove barriers and accelerate the growth of employee-owned businesses across the state.

Here’s what you need to know—and why it matters.

What Is SB21?

SB21 is bipartisan legislation that aims to make it easier for Wisconsin businesses to transition to employee ownership models, including:

• Employee Stock Ownership Plans (ESOPs)
• Worker cooperatives
• Other broad-based employee ownership structures

The bill recognizes employee ownership as a legitimate, strategic succession and economic development tool—especially for small and mid-sized businesses facing ownership transitions.

In short: SB21 helps good businesses stay local, stay strong, and stay Wisconsin-owned.

Why SB21 Matters

Wisconsin, like much of the country, is facing a silver tsunami of retiring business owners. Thousands of profitable, community-rooted companies risk being sold to out-of-state buyers or shut down entirely.

Employee ownership offers a powerful alternative. Research consistently shows that employee-owned companies:

• Are more resilient during economic downturns
• Have lower employee turnover
• Offer higher wages and better benefits over time
• Keep jobs and decision-making rooted in local communities

SB21 is about turning that research into real-world outcomes.

What SB21 Does (At a High Level)

While SB21 is not a single “silver bullet,” it creates important structural support, including:

• State recognition of employee ownership as a preferred business succession option
• Expanded access to technical assistance and education for business owners exploring employee ownership
• Improved coordination between state agencies, lenders, and service providers
• Reduced friction for businesses navigating complex ownership transitions

Think of SB21 as clearing the runway—not forcing takeoff, but making it far easier.

Why This Is Especially Important for Wisconsin

Wisconsin already punches above its weight in employee ownership. The state is home to hundreds of ESOPs and employee-owned companies across manufacturing, construction, professional services, and more.

SB21 builds on that strength by:

• Protecting locally owned businesses
• Supporting rural and small-town economies
• Creating pathways to shared prosperity for workers

It’s economic development that doesn’t rely on attracting outside companies—it doubles down on the ones already here.

WICEO’s Role

Wisconsin Center for Employee Ownership exists to educate, connect, and support businesses, workers, and policymakers around employee ownership.

SB21 aligns directly with WICEO’s mission to:

• Expand awareness of employee ownership
• Support business owners exploring transition options
• Strengthen Wisconsin’s employee-owned ecosystem

WICEO supports SB21 because it helps turn interest into action—and action into long-term impact.

What You Can Do:

If you care about:

• Local businesses
• Job retention
• Wealth-building opportunities for workers
• Wisconsin’s long-term economic health

You can:

• Learn more about employee ownership
• Share information about SB21 with your networks
• Reach out to your state legislators to express support

Policy may not be flashy—but when it’s done right, it changes lives quietly and permanently.