Ethos Public Relations Manchester

New figures show growth rate of employee owned businesses is 50% higher than the UK economy

by Ethos public relations

New figures on the employee owned business sector produced by Co-operatives UK will be announced by the Deputy Prime Minister, Nick Clegg, at the Employee Ownership Summit on 4 July.

Drawing on its annual digest of data, Co-operatives UK’s figures show that the UK employee-owned sector has grown at a rate of 1.1%, compared to 0.7% for the economy at large. As such, the growth rate for employee owned firms is over 50% higher than the economy at large.

Ed Mayo, Secretary General of Co-operatives UK, said: “Employee owned businesses are a key part of a co-operative sector that has been outperforming the wider UK economy since the start of the credit crunch 2008.

“These figures add to the growing body of evidence that employees with an ownership stake are more engaged and make for more resilient businesses.”

Iain Hasdell, Chief Executive of the Employee Ownership Association, commented:

“Employee owned businesses contribute around £30bn to the UK economy each year and I am delighted that their current rate of growth is confirmed in this important new data released by Co-operatives UK. This is further evidence that employee owned businesses are more resilient in economic downturns than their conventionally owned counterparts.”

Leading employee owned businesses in the UK include John Lewis Partnership in the retail sector, Suma Wholefoods in wholesale, Dulas in green technology and Leading Lives in public services.

The government will use the summit to publish the final report and recommendations of the Graeme Nuttall review of employee ownership.

Posted at 4^th July 2012