As part of Business for Good West Yorkshire, our partner Stir to Action and their sister company Centre for Democratic Business, recently produced a report on Employee Ownership in West Yorkshire.
Employee ownership (EO) represents a proven and increasingly important model for delivering resilient, productive and inclusive economic growth in the UK. National evidence demonstrates that employee-owned businesses (EOBs) significantly outperform conventional firms across productivity, job creation, wage fairness, resilience, environmental practice and community contribution. Although EOBs account for just 0.1% of UK businesses, they generate a disproportionately high share of economic activity and are growing rapidly, driven in large part by Employee Ownership Trust (EOT) conversions.
Despite a strong historical presence of co-operative and employee-owned firms, West Yorkshire is currently under-represented in the national EO economy. While the region accounts for around 3% of the UK’s business population, it represents only 0.6% of employee-owned businesses nationally. This gap highlights a missed opportunity to retain viable firms, protect local jobs, and embed fairer ownership models within the regional economy.
Case studies from West Yorkshire and Yorkshire more broadly demonstrate that EO works across sectors and scales—from professional services and advanced manufacturing to logistics and inclusive employment for disabled workers. These businesses show strong growth, high retention, and improved employee engagement, while maintaining local ownership and long-term stability.
The report concludes that West Yorkshire is well-positioned to accelerate EO growth but lacks a coordinated support infrastructure. With forthcoming reductions in Capital Gains Tax relief for EOT sales, proactive intervention is increasingly important. By embedding EO into business support, succession planning and inclusive growth strategies, West Yorkshire could realistically triple its EO sector within five years – strengthening productivity, resilience and democratic participation across the regional economy.