Developing Scotland's Economy: Increasing The Role Of Inclusive And Democratic Business Models

Foreword

I was delighted to be asked by Scottish Ministers to lead this Independent Review of Inclusive and Democratic Business Models (IDBMs) in Scotland. Our work was prompted and driven by the National Strategy for Economic Transformation (NSET) commitment to - ‘undertake and publish a review of how best to significantly increase the number of social enterprises, employee-owned businesses and co-operatives in Scotland, supporting regional regeneration and the wealth of local communities’.

This review comes at an opportune and important moment. Scotland and the world stand at a crossroads, an inflexion point, moving from an old fossil fueled economy with unsustainable resource use and unacceptable levels of poverty, towards a new economy that aims to be prosperous, fairer and greener.

We have a choice. We either presume that we can make this change through continuing as we are with the same blend and proportion of business and enterprise ownership forms, or we start to build a genuinely new economy by boldly advancing community wealth through increasing the number and proportion of IDBMs within Scotland.

Our work goes to the heart of how well the economy works and who it works for. As the report shows, IDBMs (be it co-operatives, social enterprises, employee-owned firms, community enterprises or development trusts) have an intrinsic and adept capability to aid economic transformation, distribute wealth, support communities and be purposeful in ways that serve people, place and the environment. Questions as to who owns our businesses are not of peripheral or marginal concern, but central to creating a prosperous, innovative and dynamic economy.

In taking forward this Review, we were clear that it should live up to the values of inclusion and democracy, be ambitious, bold and experience-led. As such, I am extremely grateful for all the experienced and knowledgeable members of the review group. There were differing perspectives reflecting the breadth of the group, and we discussed and debated ideas. We have thus arrived at a positive new direction with a powerful set of ideas and recommendations that will start the journey, advance IDBMs and, if fully implemented, contribute to the achievement of a more prosperous, innovative and dynamic economy for Scotland.

Throughout the work I was struck by the solid platform and cultural traditions we have in Scotland that lends itself to growing inclusive and democratic business models. There are good things happening already: IDBMs are a recognised part of the economy, there are support organisations, there is some funding support, there are exemplars. We have fora and organisations who prompt sharing, learning and development. However, crucially for Scotland they are not ambitious enough, often disparate and not joined up. We must coordinate and go further.

This report challenges us all think differently about the status, delivery and support afforded to IDBMs. It places questions of ownership, at the forefront of economic development and agencies, offering a significant increase in the growth of IDBMs as a key focus for government strategy, policy and practice.

This Review was never about augmenting existing practices or making slight tweaks. The scale of change we are proposing reflects both the magnitude of the opportunity and the huge challenges facing us. In this, we advocate for a new ecosystem that turns the dial, ramps up impact and with serious focus meets Scotland’s economic ambitions to be strong, dynamic and prosperous.

Neil Mcinroy