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.