Exploring the Potential of the Employee Ownership Business Model

We have today published new analysis as part of the Employee Ownership Knowledge Programme, drawing on additional insights from DJS Research.

Our headline findings are that:

• EOBs currently contribute £12-£15 billion in direct gross value added (GVA), with a total GVA contribution of £32-£41 billion (direct, indirect and induced);
• EOBs employ around 0.7% of the total employees in the UK, directly contributing around 0.8% to national output (in terms of GVA), and overall (through direct and indirect channels) drive around 1.7% to 2.1% of economic activity; and
• This business model – and the people benefits it brings – is helping to drive higher productivity in the economy: our analysis estimates that EOBs are around 8% – 12% more productive than non-EOBs.

Overall, our modelling and analysis indicates that EOBs are playing an increasingly important role in driving economic growth and productivity, supporting the development of a resilient and motivated workforce, and in providing many wider benefits to local communities and society.

The analysis provides an evidence base for policymakers and business leaders to draw on when considering ways to drive sustainable growth, employment and productivity, and is a platform from which to build better understanding of the important contributions of EOBs.

You can read the full report here.