New research commissioned by Co-operative Development Scotland shows that the number of employee-owned businesses (EOBs)* operating in Scotland has grown to 286, a 47% increase since 2022. This is comprised of 177 Scottish-registered EOBs, 25 Scottish-registered worker co-operatives, and 84 non-Scottish registered EOBs and worker co-operatives. The census also reveals that the 202 Scottish-registered EOBs and worker co-operatives have a combined turnover of £1.471 billion and employ 7,593 people.

The Scottish Government has an ambition for 500 EOBs in Scotland by 2030. Research was undertaken by University of Leeds, University of New South Wales and the White Rose Employee Ownership Centre (WREOC), to provide a census of the number of EOBs operating in Scotland as of the 31 March 2024 and to provide information on the economic significance of these businesses alongside information on ownership types and the governance of EOBs. The 2024 Census updates an earlier census carried out in 2022.    

2024 Census Findings

  • There are 286 employee-owned businesses operating in Scotland
    • 177 Scottish-registered EOBs
    • 25 Scottish-registered worker co-operatives
    • 84 EOBs (including 5 worker co-operatives) that have trading or production operations in Scotland but are registered elsewhere
  • The number of EOBs operating in Scotland has grown 47% since the 2022 Census (91 companies)
    • 49% increase of Scottish-registered EOBs (58 companies)
    • 65% increase of non-Scottish-registered EOBs (31 companies)
    • Scottish-registered worker co-operatives has seen a reduction from 27 to 25 companies
  • Scottish-registered EOBs and worker co-operatives have a combined turnover of £1.471 billion and employ 7,593 people
    • Total turnover in Scottish-registered EOBs is £1.443 billion, and £28 million in worker co-operatives
      • This is a 113% increase on the total turnover since the 2022 Census (an increase of £780 million)
    • Total employment in Scottish-registered EOBs is 7,274, an increase of 2,297 employees since the 2022 Census and 391 in worker co-operatives, a small fall on the 2022 figure
      • This is a 42.5% increase on the total employment since the 2022 Census (an increase of 2,265 employees)
    • Scottish-registered EOBs are concentrated in:
      • 36% in Glasgow and Strathclyde
      • 21% in Tayside, Central, and Fife
      • 19% in Edinburgh and Lothians
      • 12% in Highlands and Islands
    • Worker co-operatives are concentrated in:
      • 36% in Edinburgh and Lothians
      • 28% in Glasgow and Strathclyde
      • 20% in Tayside, Central, and Fife
    • Scottish-registered EOBs are concentrated in five sectors:
      • 24% in Professional, Technical, and Scientific
      • 18% in Manufacturing
      • 16% in Wholesale and Retail
      • 11% in Construction
      • 10% in Information and Communication
    • Worker co-operatives are concentrated in five sectors:
      • 24% in Agriculture, Forestry, and Fishing
      • 24% in Wholesale and Retail
      • 16% in Information and Communication
      • 8% in Professional, Technical, and Scientific
      • 8% in Human Health and Social Work

Scottish Employee-owned Business Survey March 2024

The population census was accompanied by a survey of Scottish-registered EOBs and worker co-operatives to provide detailed information on the ownership and governance structures, along with information on company objectives and practices. 93 EOBs responded to the survey, providing coverage of 53% of the EOB population, and 12 worker co-operatives responded.

2024 Survey Findings

  • 99% EOBs utilise a trust, providing collective, indirect employee ownership, whilst 15% have some direct, individual employee ownership
    • The proportion of firms using EOTs or EBTs is a small increase on the findings in 2022, and reflects the dominance of the EOT in recent employee ownership conversions
  • In EOBs on average employees own 91% of the company between them
    • 67% of EOTs are 100% employee-owned
    • In 16% of EOBs, previous owners continue to hold a minority stake
    • In 15% of EOBs, company directors hold a stake separate from the all-employee stake
  • Nearly all EOBs have some forms of employee participation in governance that are not typically used by non-employee-owned businesses
    • 88% EOBs with a trust had one or more employee trustees
    • 55% EOBs have worker directors
  • Two-thirds of EOBs paid a bonus to employees in the last year
    • The total bonus paid to employees in the last year was £5.14 million, shared by 2,251 employees in Scotland, an average of £2,283 per person
  • The top 3 most important company objectives for EOBs and worker co-operatives:
    • Promoting employee health and well-being
    • Maintaining/increasing current employment levels
    • Providing local employment
  • The extent to which EOBs are implementing fair work practices:
    • 84% pay the living wage to all 16+ employees
    • 71% only utilise zero hours contracts when appropriate
    • 93% are investing in workforce development
    • 81% are using appropriate channels for effective voice
    • 71% are undertaking gender pay gap actions
    • 69% have flexible and family friending working for all workers from day one of employment
    • 94% opposing the use of fire and rehire practices
  • The extent to which worker co-operatives are implementing fair work practices:
    • 91% pay the living wage to all 16+ employees
    • 80% only utilise zero hours contracts when appropriate
    • 80% are investing in workforce development
    • 73% have appropriate channels for effective voice
    • 80% are undertaking gender pay gap actions
    • 83% have flexible and family friendly working for all workers from day one of employment
    • 91% opposing the use of fire and rehire practices
  • The extent to which EOBs and worker co-operatives are implementing net zero practices:
    • 54% EOBs are working towards a net zero plan
    • 30% worker co-operatives are implementing a net zero plan

*Companies are defined as EOBs if there is an employee stake of more than 25% with no other single majority shareholder.  Employee ownership can be direct (individual ownership of shares) or indirect (trust ownership on employees’ behalf) or a combination of both.  Minimum size thresholds are 5 employees for EOBs and 2 for co-operatives.