Co-operate to grow Borders economy

THE Borders economy would grow significantly if there were more co-operative and employee owned companies, according to Co-operative Development Scotland.

The Scottish Enterprise subsidiary is urging local entrepreneurs throughout South Scotland to explore co-ownership as part of the UK's first Co-operatives Fortnight from 19 June to 3 July.

Co-operative and employee owned business models are attracting increasing interest from businesses and policymakers across the UK seeking more productive and profitable ways of working. Research suggests a combination of shared ownership and employee participation delivers superior business performance and sustainability.

Local success stories include Stewartry Care, the largest independent provider of personal health care at home services in Dumfries & Galloway, and the largest employee owned company in the south of Scotland.

Based in Castle Douglas, it has more than 300 elderly and/or disabled clients across Dumfries & Galloway and employs 130 people. In 2004, 97% of the employees voted for an employee buyout, which was supported by Baxi Partnership, the employee ownership investment vehicle. Turnover increased by 16% in the first year and profitability by 39%.

"Employee ownership increases staff retention," explains Stewartry Care Managing Director Louise Smith. "My experience has been that staff enjoy working in a situation where they have real influence in their working environment and how their company develops"

Borders Machinery Ring, based in Galashiels, was the first machinery ring to be formed in the UK in 1987. Machinery rings are farmers' co-operatives that share machinery and labour and are vital to the economic viability of agriculture. There are now 12 in Scotland serving around 4,500 farmers.

Today BMR has more than 800 members and a turnover of around £6m.

"We act as a management tool for members so that they can reduce and spread their fixed costs by sharing labour and machinery," explains BMR Manager Michael Bayne. "The co-operative also acts as a buying group to secure competitive prices for farm supplies. At a time of market volatility when the prices for farm produce are uncertain, the machinery ring plays a very important role in helping farmers reduce their costs."

CDS promotes co-operative and employee owned enterprise across Scotland and is widely supporting Co-operatives Fortnight.

The initiative is organised by Co-operatives UK, the membership organisation for co-operative enterprise, and will promote co-operative business models with the theme – There is an Alternative – and a website – http://www.thereisanalternative.coop/

For more information, please contact Victoria Masterson on 07733 301715 or Ian Spinney on 07973 671773.

About CDS

CDS is a wholly-owned subsidiary of Scottish Enterprise. The organisation was established by the Scottish Government to promote and support the development of co-operative and employee owned business models throughout Scotland. CDS supports the remit of Scottish Enterprise, Highlands & Islands Enterprise and Business Gateway. A specific focus is on growth industries, including food and drink, renewable energy, forestry and tourism. Co-operative business models have a major role to play in the growth of these sectors. 

CDS has its own Advisory Board comprising industry representatives and co-operative experts.  By working closely with key partners, CDS aims to demonstrate the improved productivity, sustainability and community benefits that co-operative models can offer. Its remit is to:

• Raise awareness of co-operative business models

• Help new and existing co-operatives to grow
• Develop markets for co-operative businesses

Some of Scotland's best-known co-operative and employee owned businesses include Tullis Russell, Loch Fyne Oysters, Highland Home Carers, First Milk, John Lewis Partnership, The Co-operative Group and Scotmid.

www.cdscotland.co.uk/