IDBMs must increase if Scotland is to have productive and sustainable economy – report – Scottish Business News

TRIPLING the number of inclusive and democratic businesses (IDBMs) in Scotland will make a significant contribution to transforming the country’s economy. This is according to a new report published today (3^rd September 2024).

An independent review group of economists, businesses, and support organisations are highlighting the role and benefits that social enterprises, employee-owned businesses, development trusts and co-operatives play in transforming our economy.

The report: Developing Scotland’s economy: increasing the role of inclusive and democratic business modelspoints to the Scottish Government’s National Strategy for Economic Transformation and the aspiration to significantly increase the numbers of these organisations operating in Scotland, as well as wider aspirations for Community Wealth Building and becoming a prosperous, fairer and greener country.  

In this, the report details 17 recommendations to support the overall aim of tripling the number of these organisations operating in Scotland by 2034.  

Neil McInroy, the Chair of review group and who also Chairs the Economic Development Association Scotland (EDAS), commented: “Our recommendations are about boldness, ambition, scaling and amplification. Scotland does have a tradition of inclusive and democratic business models and support for them, and there are many success stories. However, it is a present and future economic imperative that we significantly up our game.

Co-operatives, social enterprises, employee-owned firms, community enterprises and development trusts have an intrinsic capability to aid economic transformation, support innovation, distribute wealth, support communities and be purposeful in ways that serve people, place and the environment. IDBMs need to run through Scottish economic thinking and strategy as a central golden thread.

Across the world 10% of all people work in inclusive and democratic businesses and this is growing. It’s increasingly clear that questions as to who owns our businesses are not of peripheral or marginal concern, but increasingly central to creating a prosperous, innovative, green and dynamic economy”. 

Tom Arthur, Minister for  Employment and Investment, commented: “I thank the independent review body for its report. The Scottish Government will consider the recommendations and respond in due course.

Inclusive business is crucial to growing a fairer, greener economy, which is the focus of our National Strategy for Economic Transformation and a key element of Community Wealth Building.

I’m grateful for the work that has been put into looking at ways to grow Scotland’s social enterprises, co-operatives and employee-owned businesses. Doing so will ensure an economy which delivers for our communities, supports our fair work agenda, and distributes wealth in a fairer manner”.

Within the report there is a recommendation to place IDBMs at the centre of Scotland’s economic future through the creation of an effective and extensive ecosystem, akin to a “Centre of Excellence” to raise awareness, coordinate support, increase training and support access to funding.