A Welsh Government target of providing support to help double the number of employee-owned businesses in Wales is well on track to being achieved.
The aim, over the course of the current Senedd term, is part of its programme for government, In May 2021 there were 37 employee-owned businesses, with a target to reach 74 by May 2026.
Economy Minister Vaughan Gething said the figure is currently at 63. Back in 2013 there were just 13.
Research conducted by employee-owned Ceredigion-based research company Wavehill, found that 33% of Welsh employee-owned businesses are consultants (research, business, financial and environmental), 10% are in manufacturing, while 7.5% are in engineering, ICT and food and drink.
The research also found that employee ownership has led to a shift in the culture of those businesses, leading to greater unity, with people working together towards a common goal, and greater ownership over those goals. Staff retention and recruitment is also better for employee-owned businesses, because of higher levels of engagement, financial rewards, motivation and loyalty.
The Welsh Government’s Business Wales and Social Business Wales services 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.
In addition, the Development Bank of Wales offer a potential debt-based funding route for employee buyouts, with support for management buyouts available through its Wales Management Succession Fund.
Mr Gething said: "I’m delighted we’re on track to double the number of employee-owned businesses in Wales well before the end of this Senedd term.
“To achieve our vision, we’ve put in place significant support for employees to complete worker buyouts to ensure Wales-based companies remain rooted in a stronger Welsh economy.
“Employee ownership provides so many positive benefits. It gives employees the opportunity to have a significant and meaningful stake in the business they work for, giving them more control over their own futures. 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.
Archway Veterinary Centre, which has surgeries in Chepstow and Caldicot, became the first employee-owned veterinary practice in Wales earlier this year.
The business is now owned by 26 of its staff and is governed by an employee ownership trust.
Andrea Reynolds, who previously had sole interest in the practice, said: “When considering the future of Archway, I was adamant that it should remain independent long after my stewardship ends. We have a fantastic team dedicated to promoting animal health and welfare, and the employee ownership model recognises each staff member’s contribution and gives them a voice in the future of the business.
“It is the perfect way for me to pass on the practice and protect our core ethos long into the future.”
The Welsh Government works with Cwmpas to promote the benefits and development of employee ownership.
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