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THE OWNERSHIP DIVIDEND

OUR RECOMMENDATIONS CAPACITY BUILDING The Inquiry panel wants to see a rapid scaling-up of the powerful, positive effects that EO can have upon individuals, businesses and the wider UK economy. To achieve that, there must be a catalyst that will spark growth in the number of EOBs. Government agencies must work closely not just with the EO sector, but

with professional bodies and business educators too, to address current gaps in awareness, understanding and specialist capability. Those agencies must also connect firms that are interested in EO with the expertise, support and/or finance they require to enable employee buyouts.

RECOMMENDATIONS

1 The UK government should invest directly in boosting the creation of new EO firms through a high-profile, capacity-building initiative that echoes the proven, successful ventures deployed in Scotland and Wales. An independent evaluation for Co-operative Development Scotland, an economic development agency that promotes employee ownership, cited a tenfold return on investment (ROI) in gross value added (GVA) for every pound invested in on-the-ground support. The model is seen by the Scottish government as a means to root businesses in their communities, drive productivity and share wealth more widely. The evidence shows that Holyrood’s perception is accurate – the review, by Ekosgen, revealed a raft of benefits beyond the tenfold ROI in GVA (see graphic, right). 24

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The Ownership Dividend  

The Ownership Dividend The report of the The Ownership Effect Inquiry. Copyright 2018 Employee Ownership Association and LID Publishing.

The Ownership Dividend  

The Ownership Dividend The report of the The Ownership Effect Inquiry. Copyright 2018 Employee Ownership Association and LID Publishing.