Community ownership is a growing movement that is “bucking the trend” according to Plunkett UK – the national charity which supports people in rural areas to set up and run a wide range of businesses in community ownership, including through the co-operative model.
Research published on 28 October shows community-owned businesses are growing in number and remain a robust, sustainable model. Plunkett’s Community Ownership: A Better form of Business report demonstrates that the sector saw its biggest single year of growth in 2023 – 3.8% – since before the pandemic. And despite facing significant challenges, the long-term survival rate of all community businesses remains remarkably high at 94%.
Last year 35 new community-owned businesses opened, which, despite six closures, takes the total to almost 800 trading entities across the UK.
“The role these businesses play at the heart of communities across the nation is truly remarkable and, despite facing significant challenges in the recent past, seeing a growing sector with continuing high long-term success rates bodes well for the future,” said Chris Cowcher, Plunkett UK’s head of policy.
“This is a people-powered movement, with Plunkett data showing that, on average, community shops have 28 volunteers and community pubs have 19 volunteers who help on a regular basis.”
Based on these figures, an estimated 11,500 volunteers support community shops across the UK plus 3,500 volunteers at all community pubs – with a further 4,500 volunteers supporting other kinds of business within Plunkett’s network.
Cowcher adds: “Whether in a volunteering or employment capacity, or as community shareholders or fundraisers, this is genuinely a sector with a diverse community at its heart. Businesses that are owned by, run by and run for the benefit of local people are a fantastic example of how to build sustainable, thriving and inclusive places where everyone is welcome.”
The report was published a week after Plunkett UK hosted its National Community Business Conference at the Coin Street Conference Centre in London, which included presentations of its 2024 Rural Community Business Awards.
Eight community businesses or individuals from across the UK were crowned winners during the event in categories recognising community connections, environmental activities and those making a particular difference in their community – including a specific award for a young person.
Related: Community-owned business growth at highest level since the pandemic
“It has been a great joy to recognise and celebrate all the finalists at this Rural Community Business Awards,” said Gemma Sills, Plunkett UK’s engagement manager.
“Each one is truly dedicated to making a difference in their community and having considerable impact on the lives of local people in a variety of different ways. Well done to all of this year’s winners – their award is very much deserved.”
Plunkett UK’s report highlighted that with appropriate support from politicians and policymakers, there would be more scope to develop community businesses like those recognised in the awards – which in turn impact the area and people around them.
For example, despite facing challenging trading conditions, a third of community- owned businesses spoken to for the report were able to invest surpluses to support local community action, and a quarter made donations to charity. And while the impacts of the cost of living crisis and inflation remain a concern for community-owned businesses, around half are confident or very confident that their situation will improve in the next 12 months.
The report notes that over 80% of businesses have been negatively impacted by rising energy bills in the last 12 months, and highlights grant funding to invest in energy saving and efficiency measures as one potential solution.
Rising staffing costs are another challenge, adds the report – although 60% of Plunkett’s network pay the Real Living Wage or higher. Meanwhile, a benefit of the model is that community shares continue to leverage significant ‘other’ investment in the sector, with the research finding that for every £1 raised via community shares in 2023, groups attracted a further £2.33 from other sources of funding.
As a direct result of the A Better form of Business research, Plunkett UK is now in the process of incorporating a series of asks in its external affairs and lobbying work.
The winners in full
Connecting the Community, sponsored by Voneus: Cwmdu Inn, Camarthenshire, a pub, shop and post office that offers a safe and welcoming space, allowing people of similar interests an opportunity to meet up.
Going Green, sponsored by Suma: Chopwell Regeneration Group in Gateshead, with its shop for residents to bring electrical, digital, mechanical and clothing items for repair, and buy low-cost repaired items and pre-loved clothes.
Keeping it Local, sponsored by Co-op: Bledington Community Shop & Café in Gloucestershire, which utilises local trades and craftspeople, and currently has 76% of suppliers from the local area, including bread, eggs, meat, honey, chocolates and coffee.
‘More Than’: Bathford Village Shop & Café, near Bath, which has much more than the typical convenience store including wi-fi, a drinking water station for both humans and dogs, an ATM, and a library of board games, jigsaw puzzles and books. It doubles as a tourist information centre.
Investing in Local People, sponsored by Anthony Collins: Oasis Community Centre and Garden in the East Midlands, which has 35 projects with skills-based activities and courses (including gardening, cooking, floristry, and music making) and projects across childcare, health and wellbeing support, care of the elderly, and working with children with additional needs.
One to Watch: Ashton Hayes Community Hub, near Chester, which has taken ownership of the only village pub, The Golden Lion, raising £215,000 in Community Shares. The ethos is to create not only a pub but also a multi-purpose hub with accessibility to all.
Young Person, sponsored by Bestway Wholesale: Naomi Dunbar from Newton Stewart Initiative in Galloway, an 18-year-old who has organised and ran weekly youth sessions and developed Happy Daze, a fortnightly drop-in for older residents to reminisce together.
Community Contribution, sponsored by Thakeham: Rebecca Gabzdyl from East Boldre Community Stores in Hampshire, who has worked tirelessly on planning applications and project management to get the store open, and invested huge amounts of research, time and networking into product and supplier selection.
