ESOPs can motivate employees as well as allow for owners to withdraw from a business without having to sell the firm to outsiders.

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ESOPs, or Employee Stock Ownership Plans, provide employees with an ownership stake in the company, which can motivate them to work harder and increase their loyalty to the company. Additionally, ESOPs can be a way for business owners to withdraw from the business by selling their shares to the ESOP, rather than selling the entire company to outsiders. This can be beneficial for both the owner and the employees.

ESOPs Can Motivate Employees as Well as Allow for Owners