Sarah Deas Discusses EO Day 2017
Launched by the Employee Ownership Association (EOA) in 2013, today (30 June) marks the fifth EO Day (Employee Ownership Day) in the UK. It is a national celebration of the many benefits associated with being an employee owned business, with the aim of raising awareness of the positive impact EO has on the UK economy. With this in mind, we’re urging more business owners to explore employee ownership both as a viable succession route and as a catalyst for sustainable business growth.
When considering their exit strategy, the motivations for a business owner to go down the employee ownership route tend to focus on a number of key areas, such as rewarding and empowering loyal employees and rooting the business in the local community.
Statistics consistently demonstrate that employee-owned businesses outperform their non EO counterparts in terms of higher levels of profitability, improved business resilience during times of recession, increased productivity and enhanced employee wellbeing.
Recent research showed there are 86 employee-owned companies in Scotland, with approximately 6,800 employee-owners generating a combined turnover of around £925million. Furthermore, in the last five years the number of employee owned businesses operating in Scotland has trebled, so much so we are forecasting a ‘deal a month’ on average over the next year.
Over a ten year period we aspire to achieve a tenfold increase in employee owned businesses headquartered in Scotland, and with 16,000 employers in Scotland looking to transfer ownership in the next five years, we expect take up to continue accelerating.
Co-operative Development Scotland (CDS) can help you decide on the best model of employee ownership for your business. If you would like to learn more, please get in touch and have a chat with our expert advisers.