Employee-Owned Businesses
Employee-owned businesses are companies where employees hold a significant stake in ownership. They often see increased productivity and innovation, as employees have a vested interest in the business's success.
Businesses may decide to move towards employee ownership if they want to sell or retire from their business. This is becoming a popular choice among retirees due to the success of employee owned businesses. When the employees have a stake in the company, they are more likely to be productive, innovative and strive for success. This provides owners with a way to exit when it’s the right time whilst protecting the legacy and future of the business.
For more information on Employee ownership see: What is Employee Ownership - EOA
The Benefits/Values of Employee-Owned Businesses
There are currently around 1300 employee owned businesses in the UK, employing 180,000 members of staff. Combined they contribute around £30 billion GDP per annum.
Some of the benefits of employee ownership include:
- Higher staff retention
- Greater productivity
- Tax incentives (if using an approved scheme)
- Innovation
They also tend to be more successful, competitive, profitable, and prove to be more resilient in economic downturns.
Employee owned businesses place a high value on shared success and working together. Due to having a stake in the business employee owners have a shared motive to succeed.