Employee ownership surges in Wales as model gains momentum among SMEs
Employee ownership surges in Wales as model gains momentum among SMEs
Wales is experiencing a sharp rise in the number of businesses transitioning to employee ownership, with nearly 100 companies now operated under the model, far surpassing government targets and gaining traction as a strategic option for growth, succession, and employee retention.
Marking Employee Ownership Day, the Welsh Government confirmed that 95 businesses in Wales are now employee-owned, well ahead of its Programme for Government target of 74 by 2026. The figure reflects growing awareness of the commercial and cultural advantages of employee buyouts, with more founders now viewing the model as an alternative to trade sales.
“Employee ownership improves job satisfaction, boosts productivity, and ensures businesses remain rooted in their communities,” said Rebecca Evans, Cabinet Secretary for Economy, Energy and Planning. “It offers business owners peace of mind about their legacy and gives employees more control over their futures.”
While employee ownership was once seen as a niche solution, it’s now becoming mainstream, particularly among entrepreneurs seeking sustainable growth and better talent retention. Research shows that employee-owned businesses often report higher levels of staff engagement, innovation, and financial performance.
Business Wales and Social Business Wales offer specialist, fully funded support for companies considering the transition, including legal and financial advice tailored to each firm’s needs.
One of the latest success stories is Cambrian Training Group, a leading provider of apprenticeships and vocational training headquartered in Welshpool. After celebrating 30 years in business earlier this year, the company became employee-owned with help from the Welsh Government’s advisory services.
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Established in 1995, Cambrian Training began as a subsidiary of Mid Wales Tourism, delivering vocational and hospitality training to support the region’s economy. It now employs 65 staff and delivers programmes across sectors such as retail, manufacturing, and financial services.
Arwyn Watkins OBE, founder of Cambrian Training Group, said the decision to move to an Employee Ownership Trust (EOT) was driven by a desire to protect the company’s values and long-term mission.
“Securing EOT status is a significant step in our journey,” Watkins said. “Our employees are at the heart of everything we do, and this move ensures they have a direct stake in our continued success. We chose this path over a trade sale to preserve our culture and commitment to quality.”
As the number of employee-owned businesses continues to grow in Wales, policymakers and industry leaders alike are urging more businesses to explore the model as a viable path for succession and scaling.
“The evidence is clear: employee ownership strengthens foundations for long-term success,” Evans added. “It’s about keeping Welsh businesses in Welsh hands, and ensuring their futures are safeguarded for the communities they serve.”
Businesses interested in learning more about employee ownership can access support through the Business Wales and Social Business Wales programmes.
