Edinburgh Bicycle Co-operative
Edinburgh Bicycle Co-operative is a successful worker co-operative that is account managed by Scottish Enterprise.
The business started as a small bicycle repair shop employing three people in West Crosscauseway, Edinburgh, in 1977. It has since grown into one of the UK's most respected bicycle retailers, running substantial shops in Edinburgh, Aberdeen, Newcastle, Leeds and Manchester. The shops are by far the biggest in each of the five cities they serve and the co-operative now has around 100 members and 160 employees.
These five shops are augmented by the online shop, launched in 1996 (online two years before Google).
Mike Sweatman, one of seven founder members, explained why the worker co-operative model was chosen. "Traditional ways of organising businesses weren't working very well and it was time for something different," he said. "We wanted to make a political statement, but also find a way to do our own thing and to do something together."
In fact the co-operative model has been key to Edinburgh Bicycle's success. "Retail is full of low paid people who are disinterested and disengaged, trying to provide a service to customers but not doing it very well," Mike said.
"In our business, there's a good chance that anyone who walks in will speak to someone who is an owner of the business, and more interested and engaged, for example, than someone working in a shoe shop on Princes Street."
Every full-time worker becomes an equal member of the co-operative after a probationary period of one year. He or she then becomes an equal owner of the business entitled, for instance, to an equal share of the annual profits.
Co-operation also makes the business innovative, because everyone is feeding in ideas and looking to develop their part of the business. Mike explained: "Lots of businesses grow by adding new shops, but then they let the old shops languish. We can't do that, because the old shops are full of shareholders and if it's not working, they will make sure we know about it."
As shareholders, the members of Edinburgh Bicycle Co-operative appoint the board and management. Employee directors always outnumber executive directors on the board so they have the power to influence key decisions. Below the board there is a fairly conventional line management structure. Open communication is key to keeping members and the board informed of developments. Channels include quarterly visits by the managing director to all locations, newsletters and team meetings.
Other factors behind the co-operative's success include its own exclusive Revolution brand, a world-class product range and a shared passion for cycling. A percentage of profits every year is invested in grass roots cycling initiatives.
Visit the Edinburgh Bicycle Co-operative website for more information.
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