Who Are The 5 Main Stakeholders In A Business?

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Starting a business is one of the most exciting journeys that you can start. In the beginning, it
will be entirely up to you to get your fledgling company off the ground. However, even small
businesses can grow incredibly quickly and start impact many different parties. So who are the
main people that are impacted by a business? Let’s take a look!

Here are the 5 main stakeholders in a business.

Founders

First and foremost, the main stakeholder in a business is the person (or people) that founded it.
This person clearly plays a critical role in controlling the destiny of the company and is
responsible for getting the company to a place where it will start to impact others.

Keep in mind that some founders play a much larger role in the company than others do. For
example, Mark Zuckerberg is known for being an incredibly hands-on founder at Facebook.

Other founders may decide to sell the company to someone else and start a new project.
With that said, once businesses grow to become national and even international corporations,
they will impact significantly more people than just the founders.

Angel Investors and Venture Capitalist

The angel investors and venture capitalists are usually the first sources of outside financing that
a growing business receives. The slight difference between these two parties is that an angel
investor is a single investor whereas a venture capitalist usually uses a fund to invest.

Both of these parties look for successful startups that have great long-term potential. They then
offer the founders a sum of money in exchange for equity in the company.

Depending on the deal, these two parties can also play a major role in controlling the future of
the company.

Public Shareholders

If a company makes it through the process of going public then they will have to worry about
pleasing their public shareholders. This can be anyone from large investment firms such as
BlackRock to people like you and me.

When a company goes public, it is the first time that they need to make sure they’re acting in the
best interests of their shareholders. They will also be put under much more scrutiny from the
government and regulating bodies like the Securities and Exchange Commission.

Employees

By the time that a company has gone public, it is likely that they have hundreds or even
thousands of employees. Many of these employees may have also received stock options in the
company.

  • These employees are linked incredibly tightly with the company for three reasons:
  • Employees are responsible for the success of the company
  • Employees rely on the company for a paycheck and health benefits so that they can live comfortably.
  • Many employees probably hold stock options and have a vested interest in the long-term success of the company.

Due to these reasons, employees are one of the biggest stakeholders in a company. If that
company fails then the employees could be badly impacted.

The Community/Customers

The final main stakeholder in a company is the customers that the business serves as well as
the general community. When businesses grow to a certain size, decisions that they make can
impact entire communities.

For example, the electric scooter startup Bird received a lot of backlash when they were first
starting. Without asking, they deployed their scooters onto the sidewalks of L.A. where they
were in the way of members of the community. However, after a little tweaking to their system,
these scooters are now incredibly popular.

In situations like these, it becomes apparent that the overall community can also be a major
stakeholder in a business.


We hope that you’ve found this article valuable when it comes to learning who the 5 main
stakeholders in a business are! If you’re interested in learning more, please subscribe below to
get alerted of new articles as we write them!

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