Yesterday, I pulled together notes for a special advertising feature for a highly successful Ontario sub contractor. The owner described how the business evolved from an equal partnership among three tradespeople who set out on their own when their former employer closed the business in 1985, to a highly successful multinational business in 2010.
Intriguingly to me, two of the original founders still work for the company, as regular paid employees. They sold out their shares to the current owner in the early 1990s recession. A third worker, who had been the company’s first regular (non-partnership) employee joined the company with the understanding the partners wouldn’t be able to pay him until they had some cash in the bank. He worked for free for three months on business development and sales, and again, is still with the company. He doesn’t have any equity in the business, either. However, the owner’s son and son-in-law have executive roles and will presumably inherit the company’s shares with other family members.
My initial reaction on hearing this story is: How can this be? Why would people be content to work for salaries with no ownership stake in the business, even when they had key roles in founding the enterprise and (in the case of the business development person), probably were essential to its survival? Then I realized that I had fallen into the all-too-dangerous trap of associating my values and perspectives with what others think is important.
The successful owner said he had always wanted to be in business for himself and he grew up in an entrepreneurial family. His early partners, he said, just wanted to do their jobs. They didn’t have the same ambition. During 1990s recession they were happy to trade in their equity. Of course, the company treats all of its employees (and clients) with respect. Community service and involvement are taken seriously, and performance bonuses and incentives are awarded for excellent work and initiative.
I, too, grew up in family where my father repeated to me: “You must be in business for yourself.” I couldn’t quite figure out why, observing him ruin his health as he chain smoked, guzzled regular Cokes (he died in 1979 from diabetes complications), and worked seven days a week from early morning to late evening at his pharmacy. I had no desire to repeat his life, so set out to be a journalist. My parents initially could not understand and didn’t approve this career choice but their opinions changed when I obtained employment as a student reporter on one of Vancouver’s daily newspapers.
Eventually, after some rather long struggles, I connected the dots to be who I really am, combining my love of journalism and writing with business ownership and entrepreneurship. Appropriately, I’ve owned this publishing business for the past two decades. (My youngest of three brothers wanted to be a rock musician. He still plays in bands, but owns a successful studio space rental business in Vancouver. And my elder brother inherited the drug store — but set it up so that he could work regular hours and take long vacations.)
We are not all built the same. Not all of us are meant or desire to be business owners and not everyone wants the responsibility and obligations of leadership. We aren’t all architects, engineers, tradespeople, or writers. We are shaped largely by the values we are taught when we grow up, our genes, and our social class. Sometimes religion is important.
Therefore, we need to be careful about imposing our assumptions and values on others. I know I wouldn’t sell my shares out to be a regular employee, but I know as well now that not every employee really has an interest in owning the business. However, all employees need to be treated with respect. We should listen to their concerns, and encourage them to develop their strengths. If employees have ownership ambitions, these should be accommodated, either by allowing them to buy shares or by helping them set up their own independent businesses but we shouldn’t expect everyone to want to be owners, or, for that matter, marketing or business development experts.
