With six days to go until polling day, it was great to read the Employee Ownership Association's proposals for building on the expansion of employee-owned (EO) businesses in their manifesto this week. The growth of employee ownership (a 30% increase in the last year alone) is reflected in a compelling series of indicators that they highlight, including how such businesses create jobs, improve productivity, engage their employees and drive growth. But what of the future? How might we build on this success to date?

The EOA highlight the need to strengthen the model and for the Government to respond to the 2023 consultation. They also suggest ensuring that EO businesses receive favourable weighting for public sector contracts, to reflect the additional value they generate. In a context where the next government may consider how to limit profit extraction from our utilities (something Labour, the Lib Dems and the Green Party highlighted) employee ownership could be a key part of a renewed services sector. Up to now, most EO businesses have been based on conversions of SMEs. Why not be more ambitious?

The EOA also highlight access to growth capital, including offering an enhanced capital allowance for EO businesses, and unlocking funding support going forward. As the sector matures, we will see more EO businesses require investment for growth, which will challenge the model. Our approach to EO governance - allowing other investors to sit alongside the trust as shareholders, for example - will also need to mature, without diluting the commitment to the voice and engagement of employees.

Business support also has to evolve. Accountants, lawyers and business advisors are not educated about employee ownership, social enterprise, co-ops or other alternative models of business, and this has to change. 

And finally, this all needs to be part of a broader government agenda that promotes better business generally, that commits to growing the sector - and makes this concrete by appointing a minister for inclusive and democratic business. Whatever the next stripe of government, it is imperative that business policy allows broader ownership - inclusive ownership - to flourish, to make the case for a different and better way of doing business.

For more information or advice on employee-owned businesses, please contact me.