{"id":1113,"date":"2013-07-04T15:11:46","date_gmt":"2013-07-04T15:11:46","guid":{"rendered":"http:\/\/blogs.scotland.gov.uk\/scotlands-economy\/?p=1113"},"modified":"2018-03-08T17:28:36","modified_gmt":"2018-03-08T17:28:36","slug":"employee-ownership-is-a-hidden-gem-for-our-economy","status":"publish","type":"post","link":"https:\/\/blogs.gov.scot\/scotlands-economy\/2013\/07\/04\/employee-ownership-is-a-hidden-gem-for-our-economy\/","title":{"rendered":"Employee ownership is a hidden gem for our economy,"},"content":{"rendered":"
\"\"<\/a>

Discovering the benefits of an innovative business model<\/p><\/div>\n

Today we are marking Employee Ownership Day.<\/p>\n

The Scottish Government has been a long-standing supporter of employee-ownership and its ability to root jobs and growth in localities. Over the last year I have visited a number of employee-owned ventures across Scotland, ranging from Clansman Dynamics who build robotic manufacturing equipment in East Kilbride to seafood producer AquaScot in Alness, Ross-shire.<\/p>\n

Through the recent economic downturn the benefits given to the Scottish economy by employee-owned firms has been clear. Evidence has shown that they have proven to be more resilient and are able to recover and create jobs faster the more traditionally operated ventures as the outlook improves. Along with productivity that is typically 4-5 per cent\u00a0higher through employee-ownership, it is clear to see that this model is having and will continue to have an important and growing role in Scotland\u2019s economic recovery. As Sarah Deas, Chief Executive of Co-operative Development Scotland writes below, employee ownership is a hidden gem for Scotland’s economy<\/p>\n

John Swinney<\/p>\n

The 4th <\/sup>of July is a special day in America. Independence Day celebrations will take centre stage and I\u2019m sure those with US links based here will mark the day accordingly.<\/p>\n

We hope it will also become an important date in the calendar here, with the launch today of the UK\u2019s first ever Employee Ownership Day<\/a>.<\/p>\n

There is certainly much we can learn from the US in terms of their broader recognition of employee ownership as a real alternative to traditional business models. Our challenge in Scotland is to raise awareness of a dynamic, but sometimes overlooked way of doing business \u2013 a hidden gem you might say.<\/p>\n

Today will see a string of high profile events here in Scotland with many employee owned companies opening their doors so that people can discover for themselves the benefits of this innovative business model.<\/p>\n

And that\u2019s why we at Co-operative Development Scotland (CDS) will be hosting an event at Fitwise Management in Bathgate, which will see no fewer than 10 companies exploring the benefits of employee ownership \u2013 where workers have a real stake in their own future.<\/p>\n

Companies like Stewartry Care, based at Castle Douglas, will also be marking Employee Ownership Day by welcoming along anyone interested in finding out more about the home care sector, and what it means to be employee owned.<\/p>\n

Last year CDS hosted an event at Stewartry Care and I was impressed to see first hand how well suited employee ownership was proving to be in the care sector in terms of motivating staff.<\/p>\n

So what does an employee owned company look like and what will today\u2019s attendees learn? Well, it\u2019s one where employees hold the majority of shares either directly or through an employee benefit trust. That gives staff the chance to have a real voice in their future direction of travel.<\/p>\n

That\u2019s why all the evidence shows that employee owned firms are more productive, better at creating jobs and more capable of delivering growth and innovation. It\u2019s also a business model that helps keep firms sustained in their communities, and thus more likely to be headquartered here.<\/p>\n

Employee ownership is a proven winner across different sectors with John Lewis being probably the best known example. In Scotland paper and board manufacturers Tullis Russell contributes a turnover in excess of \u00a3100 million. Other examples include fabric manufacturers WL Gore and consulting engineers Arup.<\/p>\n

This business model is a powerful driver of economic growth. Over the past 15 years shares in employee owned businesses have considerably outperformed those in the FTSE All-Share Index.<\/p>\n

We want more businesses in Scotland to appreciate the benefits of this dynamic model. So we welcome the long standing backing of Cabinet Secretary John Swinney and recognition of the difference employee ownership can make.<\/p>\n

We hope today will give us in Scotland the chance to shine further light on the hidden gem of employee ownership. One that is more than capable of firing the Scottish economy forward.<\/p>\n","protected":false},"excerpt":{"rendered":"

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