The rise of the employee owned business

The latest figures from the Employee Ownership Association issued on 24 June (aka Employee Ownership Day) revealed that 285 businesses became employee owned during 2021, which is a record year for growth. In the first 5 months of 2022 a further 118 businesses have made the transition to employee ownership.

In total, 1030 businesses are currently classified as employee owned – a number which has doubled since 2020.

For business owners beginning to think about their own succession plans, EOTs offer many benefits for owners and employees alike. An external loan to the business can be helpful for owners attracted by the advantages of the EOT route, but who also require a certain amount of initial payment.

To recognise the increased interest in this sector and to help advisers and businesses understand more about EOTs and how to fund them, we have produced a new content hub and guide to employee ownership. Areas covered include eligibility criteria, benefits, how EOTs work and funding considerations.