Posted on: 07/07/2022 by: Kyle Phillips in: SMEs, Startups
According to a recent article the Welsh Government wants to double the number of businesses that are owned by employees in the principality. There are currently 38 employee-owned businesses in Wales, including eight that have hatched within the last six months.
It has been shown that businesses owned by employees tend to be sturdier and more productive than ones that are not. The Welsh Government has been working with Cwmpas who are an economic development agency located in Caerphilly. More than £70,000 of additional support has been approved by the Welsh Government in support of sharing awareness of the benefits from employee ownership throughout the nation.
Social Business Wales and Business Wales also offer advice and support to employee buyouts with bespoke help and funding available to help business owners decide if share schemes or employees taking over ownership would be a suitable thing to do to their business. Another scheme available to help is the Wales Flexible Investment Fund, which is run by the Development Bank of Wales. This offers potential debt-based funding to help with employee buyouts. There is also help given to support management buyouts and this would be available to access through the Wales Management Succession Fund.
Minister Vaughan Gething visited Tregroes Waffles in Llandysul to celebrate and mark Employee Ownership Day. Tregroes Waffles is part-owned by the staff who are all local to the bakery’s location. The use of an employee ownership trust has given great benefit towards both the employees and the owner, the employees now have much more of a say over the business.
Minister Vaughan Gething was quoted saying: “Employee ownership gives employees the opportunity to have a significant and meaningful stake in the business they work for. It gives them more control over their own destiny. It also provides business owners with the peace of mind that the future of their business is in safe hands, and that the future of their highly valued employees has been safeguarded in the community the business was fostered in.”
It’s great to hear that so much work, time, money, and effort is being put back into the hardworking small businesses of Wales. Employee-owned businesses seem to be the way forward within certain sectors of business. It does make total sense to sell parts or all of your company to your employees, especially if they are dedicated to their job, the business and the cause as then you know you can have peace of mind that they are running the business to the best of their ability.
What are your thoughts on this? If you are a business owner, do you agree with this concept? Would it be viable in your circumstances? If you are an employee, would you be onboard with taking on that responsibility? Would it make sense within your career path to do something like this?
There is a lot to think about but the future for small businesses in Wales is certainly starting to look up! I do believe that employee-owned businesses will have the longevity and capacity needed to operate in today’s competitive business world.
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