Putting people first: the rise of employee ownership in Scotland, guest blog by Vicky Hope, co-founder of LOOP Agencies

When a business considers its future, growth and succession aren't always about maximising the sale price. While traditional routes like trade sales and mergers exist, an increasing number of companies are exploring alternative models - paths that deliberately prioritise the preservation of company culture and the wellbeing of their employees over simply chasing the highest  valuation.   

When my co-founder Ed Vickers and I started LOOP Agencies, a marketing firm headquartered in Edinburgh and working with leading financial services brands across the UK, we had a vision from the beginning to create something different in the industry.   

While our success over a relatively short period of time has drawn interest from investors and acquirers, which could have significantly benefited us as co-founders, we were clear that in order to be a genuine employer of choice for top talent in the market, we wanted all our people to be part of the growth and to share in the resulting gains.   

So, with this vision in hand, we converted to become an Employee Owned Trust (EOT) at the end of March, the earliest ever conversion to EOT status in Scotland.  And we’re not alone, this people-first approach to growth is gaining traction, with employee ownership emerging as a compelling structure for businesses committed to their values and their team.  In fact, it is estimated that over 200 Scottish businesses are now EOTs, and the growth trajectory is speeding up.    

The EOT model, where businesses are held in trust for their staff, is rapidly becoming a preferred path, embedding a people-first ethos into Scotland's economy. While supportive government measures exist, the motivations often run deeper, rooted in a desire to build a different kind of legacy.   

For many, transitioning to an EOT is about preserving the company's culture and independence, ensuring the business remains true to its founding principles. It's a natural step for businesses built from day one on people-first values, where wellbeing is a principle, not just a perk.  It reflects a belief that a truly successful business doesn't just deliver great work; it creates the conditions for people to thrive together.  

Research consistently links employee ownership to improved productivity, innovation, and resilience.  And in Scotland, thousands of people are now employed across Scottish-registered EOTs.  More importantly, collectively these EOTs are estimated to contribute over £1 billion to Scotland’s economy.    

Found across Scotland, with notable clusters in Glasgow and Strathclyde, Tayside, Central Scotland and Fife, and Edinburgh and the Lothians, and prominent in sectors like professional services, manufacturing, and construction, EOTs are proving adaptable.  

While challenges exist, particularly around funding the transition, the EOT model offers a compelling vision for the future of Scottish business: one that's more inclusive, resilient, and rooted in shared success. It's more than an exit strategy for founders; it's an investment in people and a potentially transformative force for Scotland's economy.  

The brainchild of my co-founder Ed and I over a coffee in Edinburgh in late 2022, it is now a case of the whole team at LOOP sharing the growth during our next chapter.