EO Sector Statistics 2026
The most recent data published by the Employee Ownership Association and the White Rose Employee Ownership Centre reflect the growth of the number of UK companies owned by their employees.
As of March 2026, the UK Employee Ownership (EO) sector comprises approximately 2,824 employee owned businesses, keeping their profit internally rather than shared with external investor or owners. Between them they collectively employ around 548,000 individuals who benefit from having greater involvement in their business, whilst knowing that profit is either reinvested in their company for business sustainability and ongoing success, or shared with them as a profit related bonus.
In 2025, 500 transitions were recorded, compared to 560 in 2024, showing only a slight contraction, potentially linked to the EO legislation changes announced in November which slowed the transition rate for a period of time. New transitions in the first quarter of 2026 also reflected a reduction, but with clarity on the new requirements gradually being published, the number of transitioning companies is starting to rise.
The sector remains predominantly made up of small businesses, which account for 62.7% of all EO businesses. However, selling into employee ownership is not restricted to founder sellers, or SME's. Medium companies now account for 30% of EO businesses by size, with the remaining 7.3% classified as large.
The model is expected to continue to be seen as an attractive exit option for a wider pool of company owners, especially when compared to the alternatives in terms of due diligence, time to exit and simplicity of structure. Even with the reduction in CGT relief to 50%, the tax payable at transition and the increasing clarity of how this is paid, is a consideration but not a blocker for those considering a sale.
The most common sectors for employee ownership, unchanged from previous years data, are:
- Professional, scientific, and technical activities 25.5%
- Manufacturing 13.8%
- Construction 12.4%
- Administrative and Support Services 13.3%
- Wholesale/retail 10.6%
Independent trustees from IDT are appointed to companies in all these sectors providing support, guidance and expertise in this unique shareholder role.
The above data published on Employee Ownership Daye, 20 June 2025, is from the EOA and the WRCEO, UK EO Business register, May 2025.
For more information, visit their websites at
EOA and
White Rose Employee Ownership Centre
