Business News Round Up (21/06/2024)
Employee ownership in Scotland booms with turnover topping £1.4bn
Employee ownership in Scotland is has rapidly accelerated, with nearly 300 employee-owned businesses having a growing economic impact, according to Lindsays. Lawyers at Scottish legal firm Lindsays have been involved in more than 20 deals in recent years where the control of businesses of all kinds has transferred to employee ownership. Thousands of people now work for companies where staff are the owners with research showing the total turnover of those enterprises operating across Scotland now in excess of £1.4 billion. Recent research commissioned by Co-operative Development Scotland (CDS) revealed that the number of employee-owned businesses operating in Scotland is 286 – an increase of 47% since 2022. They collectively employ a total of almost 7,600 people. The Scottish Government has a target of having 500 employee-owned businesses operating across Scotland by 2030.
UK leads Europe in number of GenAI startups
The UK is home to the most generative AI startups compared to the rest of Europe, according to a study by venture capital firm Accel. Accel found that of the 221 GenAI startups it analysed, 30% were UK founded, with 14% in Germany, 11% in France, and 6% found in the Netherlands. The survey also included data on startups founded in the state of Israel, which housed 13% of the 221 startups. However, the UK has not led the rest of Europe in terms of generative AI funding. France, despite only having 11%, or about 24, of the analysed startups, had the largest amount of funding, at $2.29 billion (£1.8bn). The UK came in second, with $1.15 billion (£910k). France’s Mistral, a generative AI company that rivals OpenAI, gained 600m euros (£507m) in a funding round, with a valuation of 5.8 bn euros (£4.9bn), contributing greatly to the country’s lead.
https://www.digit.fyi/uk-leads-europe-in-number-of-genai-startups/
Two thirds of Scots favour on-the-job training over university degrees
64% of people in Scotland believe that on-the-job-skills training or apprenticeships are more valuable in preparing for work than university degrees. The Amazon Future of Work & Career Development European study, conducted by Ipsos, also found that just under a third (32%) of Scottish adults believe that a university degree is as essential for a good career as it was 10 years ago. The overwhelming majority (83%) of people in Scotland said career development training is important to them when looking for a new job or role – however, 29% reckon they couldn’t afford to pay for training on their own. A further 31% of workers expressed concern that they won’t have the training and skills to be relevant in their job in the coming years – with 80% stating that people in the workforce today will need to continue to update their skills to continue working in the future.
https://www.insider.co.uk/news/two-thirds-scots-favour-job-33071984
Retail sales blow past expectations in sign UK economy is on the turn
UK retail sales rebounded last month, according to fresh data, after a rainy April saw a slump in high street spending. Retail sales volumes rose by 2.9% in May 2024 with strong sales across clothing retailers and furniture stores, the Office for National Statistics said today. Economists had expected a 1.8% month on month hike. Non-food stores sales volumes, which includes clothing and household items, rose by 3.5% in May – the largest monthly rise since April 2021. Analysts noted that sales will have likely been boosted by the May bank holidays. The May data comes after a drizzly April led to drop in sales, falling by 1.8%. This was revised from a 2.3% fall that was previously reported. Retail sales for the quarter were also up, rising by one per cent in the three months to May compared with the three months to February.