Interest in co-operative business models surges in Scotland
Surging interest in co-operative business models, such as consortium co-operatives and employee-owned businesses, is fuelling record levels of enquiries for specialist advice from Co-operative Development Scotland (CDS).
The Scottish Enterprise subsidiary has seen a 350% jump in enquiries during the last two years, and is set to advise 250 potential new co-operative or employee-owned businesses in the current year.
During the last six months alone, CDS has helped establish 15 new co-operative businesses - a record since the agency was set up in 2006 to increase the contribution of co-operative and employee owned businesses to Scotland's economy.
Newly formed co-operative businesses include Scottish Bee Services, a Perthshire-based consortium of beekeepers, Skiach Hydro, an energy co-operative based in the Highlands and Such and Such, an Edinburgh-based consortium of designers and artists. Consortium co-operatives enable their individual members to buy, procure and sell more effectively.
Recently-formed employee-owned businesses advised by CDS include Clansman Dynamics, the East Kilbride based robotic handling specialist, and West Highland Free Press, the campaigning Isle of Skye newspaper. CDS is also advising a healthy pipeline of prospective employee buyouts as a growing number of business owners elect to safeguard the independence and future of their business by selling to the employees.
Sarah Deas, the CDS Chief Executive, said: "There is growing awareness of the benefits of co-operative business models, in particular their reputation for being more productive, profitable and sustainable. Scotland’s economy has much to gain by increasing the numbers of these types of businesses. We are delighted that there is so much interest."
CDS has advised over 500 existing and potential co-operative or employee-owned businesses to date.
Recent performance facts about co-operative and employee owned businesses:
- Employee-owned companies have outperformed the FTSE All-Share by an average of 11% a year over the last 17 years (Employee Ownership Index, Fisher Field Waterhouse LLP, February 2010).
- Employee owned businesses are often more profitable than conventional businesses and create jobs more quickly - even in difficult economic times (Model Growth, Cass Business School and John Lewis Partnership, February 2010).
- Employee ownership can improve employee engagement, rates of innovation, business sustainability and productivity (The employee ownership effect - a review of the evidence, Employee Ownership Association, 2010).
· Co-operative businesses in the UK have increased their combined turnover by 15.8% to almost £34 billion over the last year. UK GDP fell 4.9% over the same period (Co-operatives UK, June 2010).
- Co-operatives are more resilient than other business models in times of economic crisis (International Labour Organisation, Resilience of the Co-operative Business Model in Times of Crisis, 2009).
- Co-operatives survive approximately 24% longer than traditional business models (Québec Ministry of Economic Development, Innovation and Export, 2008).
For more information: Ian Spinney on 07973 671773
About CDS
CDS is a wholly-owned subsidiary of Scottish Enterprise set up to grow the contribution of co-operative and employee owned business models to Scotland's economy. 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, tourism and creative industries. Co-operative business models have a major role to play in the growth of these sectors.
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.
Contact Information
Julia McLaren
Engagement Partner
Scottish Enterprise
0300 013 3223
07801 794046