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Economy Minister Dr Caoimhe Archibald visited S&W Wholesale in Newry where she announced that her Department is providing almost £100,000 of funding to Employee Ownership Ireland (EOI) to increase awareness of the employee ownership trust (EOT) model across the north.
Employee ownership is a transformative approach to business where employees hold a substantial financial and decision-making stake in the organisation. S&W Wholesale became an EOT in January 2023.
Minister Archibald said: “The benefits of employee ownership are well documented and are strongly aligned with my economic plans. Employee-owned businesses pay, on average, a higher wage. They are more likely to remain in the same location and invest in their local economy and importantly, they are 8-12% more productive.
“Today’s funding announcement will help increase awareness of employee ownership and support businesses transitioning to employee ownership through funded feasibility studies.”
The transition to employee ownership often happens when business owners are looking for a succession solution. Instead of selling to external buyers, they transfer ownership to their employees, preserving the company’s legacy and keeping it rooted in the local community.
Anthony McVeigh, CEO of S&W Wholesale, added: “It was wonderful to welcome Minister Archibald to S&W Wholesale today and speak to the many positives of being a business operating for the benefit of the employees. Since S&W made the transition back in 2023, we have experienced significant growth and are supported by a highly engaged and committed workforce. We have a very positive story to tell and are grateful to the Minister for taking the time to visit our offices and meet with many of our brilliant colleagues who are now playing an even greater role within the business.”
Aidan O’Neill, Board Member, Employee Ownership Ireland, said: “We welcome the Minister’s announcement today and are encouraged that this funding will now be available for businesses across all sectors who are interested in becoming an EOT. Much of this funding will be directed towards providing feasibility studies for firms who at the beginning of the EO journey and will enable the EOI board to continue offering mentorship, peer to peer support and a bank of resources at crucial early stages.
“It is particularly welcome that this announcement was made on Employee Ownership Day when the EO community across NI is coming together and celebrating the momentum behind the movement. There are now around 1,000 employee-owners working in this region and as a board, we are working hard to increase this figure even further and to showcase the many benefits EO brings to both businesses and the local economy.”
Newry and Armagh MP Dáire Hughes welcomed the announcement of £100,000 investment in employee ownership initiatives by Economy Minister Caoimhe Archibald.
“Minister Archibald’s investment in Employee Ownership Ireland is a very positive development, and one which I hope will lead to increased numbers of businesses and workers adopting this approach," said Mr Hughes after the announcement in Newry.
“This exciting practice brings immense benefits to both employees and businesses, leading to higher wages, increased morale and improved output.
CEO of S&W Wholesale.
“This in turn benefits the local economy as businesses are more likely to stay in the same location and support the local community.”
Continuing, Dáire Hughes MP said: “It was great to have Minister Archibald in S&W Wholesale, Newry, to make this important announcement.
“S&W Wholesale is a powerful local example of a flourishing business operating for the benefit of its workers, while also enjoying huge success itself.
“Since adopting the employee ownership model, S&W Wholesale have experienced significant growth, and I wish them well for the future. I will continue to work with local businesses to promote this initiative.”
The MP concluded by encouraging local businesses to explore this model and engage with Employee Ownership Ireland for further advice and support.
To learn more about Employee Ownership Ireland and the support they can offer businesses visit employeeownershipireland.com where you can also find information on how to apply for a fully-funded feasibility study.
