Published by the eoa, the ‘Robust Growth Champions’ report shows the EO sector has a significantly higher percentage of businesses that have delivered over 10% growth in sales, profit, or headcount – while demonstrating lower insolvency – over the past five years.
“The analysis shows that EOBs are over 50% more likely to be ‘robust growth champions’ - businesses that consistently deliver growth in sales, profits, and headcount, all while maintaining strong balance sheets,” said Gareth Rumsey, Head of Data Analytics at ThinCats.
“Their advantage held true across different sizes, regions, and sectors, reinforcing the economic case for expanding employee ownership (EO) in the UK.”
James de le Vingne, Chief Executive of the eoa, said: “At a time when businesses are facing greater financial insecurities and unprecedented challenges, the findings presented in this report provide more evidence to the growing body of sector research that employee ownership isn’t only a viable alternative to traditional business models, but one vital for sustainable growth.”
The research builds on the groundbreaking EO Knowledge Programme ‘People Powered Growth’ report (which found that EO businesses are 8-12% more productive than their counterparts).
Using access to ThinCats data and risk analysis framework, key metrics of growth, and resilience were agreed and tested in both employee owned businesses (EOB) and non-EOB samples.
The scale of comparison in the report was unprecedented – over 300 EOBs compared to more than 15,000 matched non-EOBs.