Why EO (general)?

Question 1

What are the key points of a EO model?

Answer 1

EO is an effective business model for productivity & profitability that can be both better & fairer than other business models.

Question 2

Why is it better than traditional business models?

Answer 2

There’s a real imbalance in the UK economy in terms of large numbers of businesses being driven by short term shareholder value & leading to short termism for the whole economy.

EO provides a proven alternative to the “build, sell & takeover” business culture which does have its place of course, but can have a negative impact on economic stability as we’ve seen over the last 6 years or so.

Question 3

How does EO contribute to the economy?

Answer 3

There’s a raft of research & statistics to illustrate how EO businesses already contribute to the UK economy:

• UK employee owned companies contribute around 4 per cent of GDP.
• Employee ownership in the private sector is worth around £30 billion annually to the UK economy.
• Over the past 12 months there has been a 10% increase in the number of companies converting to employee ownership.
• Employee ownership exists in every sector and geography of the UK economy.

Question 4

Name some established EO businesses

Answer 4

Some well-known UK brands are highly successful EO businesses, such as John Lewis Partnership, Unipart, Tullis Russell & Arup.

Question 5

Why is EO important to the Scottish economy?

Answer 5

Generally we’re a nation of small-medium sized businesses. Trade sales & takeovers often result in ownership & decision making authority moving out with Scotland, not ideal for the Scottish economy.