Private Equity Investor Yongama Skweyiya Details Why Employee Stock Ownership Should Be The Basis Of Wealth Participation In Start-Ups
Private Equity Investor Yongama Skweyiya Details Why Employee Stock Ownership Should Be The Basis Of Wealth Participation In Start-Ups. South African Private Equity Investor Yongama Skweyiya took to Twitter to detail why employee stock ownership should be the basis of wealth participation in startups.
The post read, “Employee stock ownership plans (ESOPs) should be the basis of modern wealth participation in the start up environment. This allows for better alignment of incentives to ensure long term success and sustainability of the venture.” Skweyiya understands that in order to create wealth one needs this important t element, which is ownership. When one owns equity in a company that is sustainable and has potential to grow, they can generate wealth in the long term.
Skweyiya is the Managing General Partner at IsimoVest Venture Capital Partners, which is a company that like to get involved in early stage consumer focused businesses and enterprises. As a Pan-African venture capital company, it specialises in high potential start-ups & SME’s looking to scale operations & access markets across the continent. A key component to its business model is to work with diverse founders and founding teams, looking with great emphasis on female led and/or black-owned ventures. The company considers itself as an active investor, and enjoys working hand-in-hand with its partner companies to help achieve growth and success.
When employees are given a chance to get an equity share of the company they work for, they will be incentivised to work even harder as they will know that when the company grows they will also benefit through the profits they will gain from the stock. This also helps employees to start learning about investing and acquiring equity and what it can do for them in the long term. This way they can branch out on their own and invest in other stocks or companies and therefore be able to create wealth.
