Sarah Deas: No better time to start a co-operative business

Published on Monday 18 May 2009 09:18

HAVE you thought about starting a business, but are uncertain of the consequences? Perhaps you have recently lost your job, alongside a number of colleagues. Could those former workmates be your future business partners?

Collaborating to form a co-operative or employee-owned business is a great way to share the risk and rewards of a new venture. As a part-owner, every employee or member has a say in how the company is run. They also share in the profits and, as a result, tend to be more loyal and entrepreneurial.

Employee-owned businesses, for example, are 5 per cent more productive on average and show a 20 per cent greater survival rate than other business models.

The Edinburgh Bicycle Co-operative is a great example of a successful co-owned business. Started in 1977 as a small bicycle repair shop, it has since grown into one of the UK's most respected bicycle retailers.

The co-operative now has around 100 members and 160 employees and runs substantial shops in Edinburgh, Aberdeen, Newcastle, Leeds and Manchester, alongside a thriving online shop. Every worker becomes an equal member of the co-operative after one year, entitled, for instance, to an equal share of the annual profits.

Another local co-operative success story is The Graphics Company, a workers' co-operative providing print and web design to the voluntary, public and social enterprise sectors. It was started in 1989 and now has annual sales of around 350,000.

Co-operative Development Scotland, a Scottish Enterprise subsidiary, is charged with developing these business models and believes there has never been a better time.

Recent events have arguably strengthened the case for more sustainable ways of doing business, and there is renewed interest in brands representing traditional values and integrity. Could you and your former colleagues be one of Scotland's next generation of co-operative businesses? For more information visit www.cdscotland.co.uk.

Sarah Deas is chief executive of Co-operative Development Scotland