Model Growth: Do employee-owned businesses deliver sustainable performance?
Research by Cass Business School, sponsored by The John Lewis Partnership, looks at how employee-owned businesses performed before and during the recession. Based on an in-depth survey of senior executives and an analysis of the financial data of over 250 companies, the study finds that employee-owned firms:
• create new jobs more quickly than conventionally structured businesses - they recruit more employees at a faster rate and reward employees with higher wages;
• are nevertheless as profitable as conventional businesses;
• are more resilient: their performance is more stable over business cycles, and they have outperformed the market during the downturn;
• are also more robust: employee-owned businesses have a lower risk of business failure.