A veterinary practice chain in Shetland joined an annual celebration employee ownership yesterday.
Shetland Vets took part in EO Day 2016, which was launched by the Employee Ownership Association (EOA) to raise awareness about the positive impact this sector has on the UK economy.
Shetland Vets originally began as Westside Vets in 1985 in Bixter. Owned by Juliet and Jim Nicolson, the practice enjoyed successful growth over the years and now operates out of three locations on the Islands – Bixter, Lerwick and Scalloway – with 21 employees.
The firm began the process of transitioning to employee ownership in December 2014, with support from Highlands and Islands Enterprise (HIE), and is now fully owned by an employee trust.
It was one of the first businesses in Scotland to take on the Employee Ownership Trust model, where the owners are paid the value of their business from future earnings.
The Scottish Government-backed agency, Co-operative Development Scotland (CDS), has said there are 16,000 employers in Scotland looking to transfer ownership in the next five years and that many could explore employee ownership as a viable succession route.
Sarah Deas, director of CDS, said: “It is fantastic to hear how well the practice is doing and that the employees have fully embraced their new status.
“Over the next ten years we aspire to achieve a tenfold increase in employee ownership in Scotland. As the baby boomer generation reaches retirement age, many business owners will be considering what will happen to their business when they choose to take that step back. Starting that process early opens up more options.”
Deb Oxley, chief executive of EOA, which launched EO Day in 2013 said: “Statistics consistently demonstrate that employee-owned businesses outperform their non-EO counterparts in terms of higher levels of profitability; display improved business resilience during times of recession; benefit from increased productivity brought about by higher levels of engagement, and enhance employee wellbeing.
“Recent research led by the EOA also clearly indicates that there is a growing appetite from businesses, and especially owner-managed SMEs, for more innovative and financially viable succession solutions.
“EOA members like CDS provide all the evidence needed to demonstrate the success of this model and their achievements act a source of inspiration for other like-minded businesses looking to make the move to employee ownership.”
