A British Mondragon

There have been several attempts made in the UK (by Jo Grimond among others) to copy the success of the Mondragon co-ops in Spain, where a Spanish priest after the Civil War initiated a series of linked firms which now employ over 20,000 people and have their own bank. The latest UK attempt is New Enterprise Development Ltd (NED) in Glenrothes, Fife, whose founder director Cairns Campbell aims to create at least two new large-scale businesses each year. Among the many unusual features of this local enterprise agency are that they are on the look-out for successful entrepreneurs to whom they can pay a salary for researching and developing a business idea for up to a year before the first employees are taken on; and all employees on joining will be required to take a L1,000 to L2,000 stake in the company 'so as to encourage a feeling of commitment.' Campbell himself was director of the Scottish Co-operative Development Committee until 1985 and his primary motivation in starting NED is to 'help unlock the potential in employee ownership.'

'All employees on joining will be required to take a L1,000 to L2,000 stake in the company so as to encourage a feeling of commitment'

Their first firm will be manufacturing raised access flooring for offices, taking on 15 workers in year one, and aiming for 25 to 50 within three years. Besides head-hunting entrepreneurs, Campbell would also welcome worthwhile business ideas - he expects that the most fruitful approach will be to set up partnerships with foreign companies, manufacturing under licence.

NED, Saltire Centre, Glenrothes, Fife, KY6 2DA, Scotland (tel 0592 775000).

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