Growing numbers of Amsterdam entrepreneurs are choosing steward-ownership

What is steward-ownership?

In steward-ownership, a company's shares are managed by a foundation, which acts as a steward for the enterprise. Entrepreneurs who wish to transition to the model later on establish a foundation that takes over their shares. Some entrepreneurs choose to donate their shares to this foundation. For many entrepreneurs, however, their business represents their pension. They opt to sell their shares to the foundation instead. The foundation then uses dividend distributions to gradually pay off the purchase price until the entrepreneur is fully bought out. It also happens that a bank finances the transfer, enabling an entrepreneur to be bought out more quickly.

Stewards govern the foundation

The foundation's directors are called 'stewards'. They act as shareholders and help the company achieve its mission. Typically, an enterprise has 3 to 5 stewards, though there can be more. At some companies, all stewards are also employees. At many businesses, however, it's a mixture of (former) employees, independent experts, and sometimes the founder's family may also nominate a steward. In the early years, the founder usually remains involved as a steward to transfer the ownership role.

Why do entrepreneurs choose this model?

Steward-ownership suits entrepreneurs who want to put social purpose at the centre. The model is adopted by both start-up entrepreneurs and those facing succession issues. For entrepreneurs approaching retirement, steward-ownership is a way to ensure their business continues as an independent entity whilst preserving employment and the company's unique character that has been built up over the years.

Camping Zeeburg

When Toon Weijenborg retired last year, he decided not to sell Camping Zeeburg to a large chain, but instead to transfer it to a foundation. Rabobank financed the takeover. Profits are used to keep the campsite healthy financially, and any surplus is donated to social projects in Amsterdam. "This way, this place can continue to exist forever," says Weijenborg. "For the guests and for the city."

Why is steward-ownership interesting for our city?

Steward-ownership is one of the ways that enables businesses and entrepreneurs to increase their social impact and contribute to the transition towards an impact economy. This also brings the solving of social challenges closer to home. Research shows that steward-owned businesses are more resilient, firmly rooted locally, and continue to lead the way in innovation and sustainability.

Through steward-ownership, socially committed enterprises can be preserved for the city. Want to know more about steward-ownership? Visit the website of We Are Stewards here.