100 and counting – The Rising Tide of Employee Ownership in Wales

As we stand on the verge of a significant milestone in Employee Ownership (EO) in Wales, we are bringing together EO businesses, supporters and practitioners to celebrate the growth of employee-owned businesses in Wales.  Our ‘EO 100’ Event, on the 11th November showcases the work done so far, and looks forward to a Wales flourishing with a strong employee ownership ethos.  

Employee Ownership (EO) is growing quickly in Wales, offering a powerful and practical alternative for business succession and providing a resilient and community-focused growth. From family-run firms in rural towns to innovative service providers in our urban centres, more Welsh businesses are choosing to hand over the reins to their employees — and the results are speaking for themselves. As the number of employee-owned companies continue to grow, it’s clear that EO is more than just a trend; it’s a vital part of building a fairer, stronger Welsh economy. The work done in Wales so far demonstrates that with collective action and Government support, we can make great things happen.  

A Surge in Numbers 

The number of employee-owned businesses in Wales has increased rapidly from just 37 in May 2021 to 63 by June 2023, with the Welsh Government committing to double that figure to by May 2026 – with Wales hitting that target ahead of schedule in June 2024. EO is no longer niche: it covers all local authorities in Wales, across differing sectors and with businesses of varying sizes. These businesses are all connected however, by the desire to trust EO to preserve their businesses and secure their legacy. 

Today we stand at on the verge of 100 employee-owned businesses in Wales – and we want more and cannot stand still.  

Why Fostering EO in Wales is Vital 

Employee ownership is especially pertinent for the business owner interested in securing a legacy and keeping the company close to its local roots. From a Wales perspective we need to be able to sustain our small businesses; protecting Welsh-owned SMEs from takeovers by investors with little care for aligning their future with local needs. 

Without a strong and growing employee ownership sector, many Welsh businesses risk being sold to external buyers — often larger corporations or overseas investors — who may not have a long-term stake in the local economy. When this happens, decisions about jobs, operations, and investment are frequently taken out of Wales, leading to the loss of local control and, in many cases, the eventual closure or relocation of businesses. This can weaken communities, reduce employment opportunities, and strip wealth from the region. It can also be frustrating and heartbreaking for the exited owner; still living in the community and seeing a legacy destroyed.  

Employee ownership offers a powerful alternative; it keeps businesses rooted in their communities, ensures that profits and decision-making stay local, and provides a stable, values-led path for succession. As more owners approach retirement, or see themselves taking on a new challenge, supporting EO becomes not just a smart economic strategy, but a necessary step to protect Wales’s business heritage for future generations. By considering employee ownership, small business owners in Wales can build thriving and profitable enterprises that benefit their employees, communities, and their own succession legacies. 

What happens once a business is employee owned? 

Success breeds success; and as the numbers of EO businesses in Wales grow we have to ensure that those business owners are using EO to exit their business for the right reasons. There is a danger that the exiting business owners sees EO as a quick transactional exit rather than a strategy for longer term success and the wider benefits this can bring.  Business owners need to be carefully advised, ensuring that all employees are aware of the planned EO deal, that EO will impact everyone in the business and when done correctly, it should be embedded into the DNA of the business.   

While transitioning to employee ownership is a major milestone, the journey doesn’t end there — in fact, it’s just the beginning. Post-transition support is crucial to help businesses fully realise the benefits of the EO model. This includes developing strong governance structures, nurturing a culture of shared ownership, and ensuring employees are equipped to take on their new roles as co-owners. Without proper guidance and training, businesses risk losing momentum or failing to embed the principles of employee ownership in day-to-day operations. Ongoing support from experienced advisers, peer networks, and government-backed programmes ensures that EO companies in Wales not only survive the transition, but thrive in the long term — delivering better outcomes for employees, customers, and communities alike. 

Summary  

Wales is witnessing an empowering transformation — the growth of employee ownership. This isn’t just a numbers game; it’s about building a resilient, innovative, and fair economy rooted in local communities. With continued investment, policy support, and grassroots enthusiasm, EO can become the blueprint for sustainable business in Wales. 

Let’s seize this moment, deepen the momentum, and champion a future where business success and community well-being go hand in hand in Wales. 

Choosing employee ownership should be about more than just tax benefits or a quick exit strategy — the most successful transitions happen when business owners are driven by the right reasons. Owners who genuinely care about their employees, want to preserve the business’s values, and are committed to its long-term success are best placed to make EO work. When the motivation is rooted in legacy, fairness, and a desire to see the business continue to serve its community, employee ownership becomes a powerful tool for continuity and growth. By handing over ownership with purpose and integrity, founders lay the groundwork for a culture of trust, accountability, and shared success — values that resonate deeply with Welsh businesses and the communities they serve. 

Cwmpas is the UK’s largest development agency for co-operatives, social enterprises, and employee-owned businesses. Under the Social Business Wales project and funded by the Welsh Government, Cwmpas delivers the Employee Ownership Wales service, a free service for business owners interested in this model.