Magazine article Personnel Journal

SRC Turns Workers into Company Presidents

Magazine article Personnel Journal

SRC Turns Workers into Company Presidents

Article excerpt

Springfield, Missouri-based Springfield Remanufacturing Corp. does such a good job at teaching its workers how to act like business owners that many want to do just that--own their own businesses. So SRC gives them the chance.

In 1989 the company started an entrepreneurial program that helps workers start their own businesses. Interested entrepreneurs discuss their ideas with the human relations staff who then work with a financial person to create an income statement, a cash flow statement and a balance sheet. If the economics are good, and the company believes the idea will fly, SRC will fund the new enterprise 80%. The entrepreneurs can cash in their equity in the ESOP, if fully vested, to pay for their portion of the startup.

The company says that workers can submit any ideas, be it for a liquor store or a turbocharger rebuilder. However, those that compliment SRC's primary business of engine rebuilding have a better chance of being accepted, and in fact have been the only ones implemented.

To date, employees have formed 12 new companies. These include Engine Plus, which supplies SRC with oil coolers to remanufacture engines, Megavolt, a company that remanufactures starters, alternators and generators, and Newstream Enterprises, which makes and sells engine rebuilding kits. …

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