Minister sets out plans to double the number of employee-owned businesses in Wales

Economy Minister Vaughan Gething has announced plans to double the number of businesses in Wales that are owned by their employees.

On average, two to three employee buy-out deals take place in Wales every year, but the scale of the employee-owned sector has grown in recent times, suggesting there is potential for many more employee-owned businesses.

There are currently 38 in Wales, with eight created in the last six months.

Employee ownership delivers benefits for employees and for businesses, with evidence showing these businesses tend to be more productive and more resilient.

“Employee ownership gives employees the opportunity to have a significant and meaningful stake in the business they work for,” Mr Gething said.

Control

“It gives them more control over their own destiny. It also provides business owners with the peace of mind that 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.”

“The Welsh Government is committed to doubling the number of employee-owned businesses by 2026. To achieve that, we want to provide greater support for worker buyouts.

“I urge more businesses to explore the benefits on offer via Business Wales and Social Business Wales, to ensure Wales-based companies remain in Welsh hands.”

Support

Working with the development agency Cwmpas, the Welsh Government has recently approved £70,000 of additional support for promoting the benefits and development of employee ownership in Wales to ensure business based in Wales are aware of the opportunities and benefits it offers.

Business Wales and Social Business Wales also offer specialist advice to support employee buy outs, with fully funded and bespoke help available to help business owners decide if employee ownership and share schemes are the right solution for their business.

The Wales Flexible Investment Fund, which is operated by the Development Bank of Wales, also offers a potential debt-based funding route for employee buyouts, with support for Management buyouts available through the Wales Management Succession Fund.