Sheffield worker-owned businesses celebrated as boosting companies and economy
A Sheffield brewery that was taken over by its workers has been highlighted as an example of the benefits of employee-owned workplaces.
Coun Minesh Parekh, a member of Sheffield City Council’s economic development, skills and culture policy committee, said he believes that co-operative ownership strengthens companies and the economy.
The issue was discussed at the most recent meeting of the council’s economic development, skills and culture policy committee last Thursday (October 23).
Coun Parekh spoke about the “growing number of Sheffield-based businesses [that] have transitioned to employee ownership this year”. He asked what support council organisation Business Sheffield offers to firms considering employee ownership.
He was told that Business Sheffield provides access to legal support and advice on the range of structures available to an enterprise.
Officers said they recently provided support to Abbeydale Brewery Ltd, who completed their transition to employee ownership a year ago. The brewery, which was founded by Patrick Morton in 1996, passed into the hands of its 57 staff when he and wife Sue retired.
Contribution
The company’s website said at the time: “It’s leaving the business in the hands of those who know it best, as well as recognising the contribution our employees have made and continue to make.”
Coun Parekh, a Labour and Cooperative ward councillor for Crookes and Crosspool, said: “Employee ownership gives workers a meaningful stake over their workplace. When decisions are made democratically and profits are shared more fairly, everyone benefits.
“The co-operative approach builds stronger companies, stronger communities, and a fairer economy for everyone. There are so many benefits to worker ownership and I am glad that the council is prioritising supporting more businesses to make that transition.”
Coun Parekh serves as the chair of Sheffield Co-operative Party, which has 15 councillors on Sheffield City Council. He said that the party supports employee-ownership as a way to create a more democratic economy where workers have a stake in and a say over how their workplace is run.
A growing number of Sheffield-based businesses have transitioned to employee ownership this year, said Coun Parekh. Among them are roofing firm Martin-Brooks Roofing Specialists Ltd, cutlery company Taylor’s Eye Witness, online suppler Pest Control Supermarket.com and digital agency The SEO Works.
More long-standing employee-owned concerns include manufacturing firm Gripple, HLM Architects and manufacturer Armeg.
Trebled
Nationally, the number of employee-owned businesses has trebled over the last five years, including an increase of 31% in 2024 alone, said Coun Parekh.
A recent Co-operative & Mutual Economy 2025 Report published by umbrella organisation Co-ops UK found that employee-owned businesses benefit from greater job security than shareholder-owned firms.
They have higher productivity with gains of around 8% to 12% over non-employee owned businesses.
Together, co‑operatives and mutuals in the UK now generate record income of £179.2bn, serve 65.7 million memberships and employ 1.6 million people, the report said.
Coun Parekh said: “It’s obvious that employee-owned businesses will outperform shareholder-owned businesses: it is far more motivating knowing that you and your colleagues will see reap the benefits of your labour, rather than shareholders overseas.”
Sheffield, which was in 2019 and 2022 named the best UK city for business start-ups, offers support and advice to new and more established firms.
Its team of business advisors include both high street and tech specialists.
To find out more, go online to https://www.welcometosheffield.co.uk/business, call the business advisor team 0114 224 5000 or email [email protected]