Tripling the number of inclusive and democratic businesses (IDBMs) in Scotland will make a significant contribution to transforming the country’s economy, according to a new report published today.

Produced by the Economic Development Association Scotland (EDAS), the report is an independent review by economists, businesses, and support organisations, highlighting the role and benefits that social enterprises, employee-owned businesses, development trusts and co-operatives play in building the economy.

The study, Developing Scotland’s Economy: Increasing the Role of Inclusive and Democratic Business Models, highlights the Scottish Government’s National Strategy for Economic Transformation, which aims to grow the number of these organisations in Scotland, and aligns with broader goals for Community Wealth Building.

“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,” said Neil McInroy, chair of the review group and also chair of EDAS.

The report details 17 recommendations to support the overall aim of tripling the number of these organisations operating in Scotland by 2034, which includes better recognition and integration of IDBMs within the Scottish economic strategy, reforming policy support for IDBMs, and improvements to funding and investments by the public sector.

The paper suggests that IDBMs should be central to Scotland’s economic future, and can get there by creating a strong support ecosystem, like establishing a centre of excellence or widening the scope of existing business awards, to raise awareness, coordinate resources, expand training, and improve access to funding.

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Tom Arthur, minister for employment and investment, said: “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.”

Last week, CBI Scotland, the trade organisation which represents Scottish businesses, urged the Scottish government to use the forthcoming Programme for Government to support enterprise, and go “full throttle” to achieve long-term sustainable economic growth.