Diversity in business forms can deliver sustainable growth, says UK report

27 November 2013

Expanding the diversity of UK business forms will improve the way businesses operate and result in sustainable growth, according to a study by the business thinktank Tomorrow’s Company.

Its report, Tomorrow’s Business Forms, argues that a business’ purpose is more effective and successful when it is underpinned and reinforced by the form of the business. The report warns that when business form is incompatible there is a risk that trust and value might be compromised.

The study shows how some listed and private companies have changed business forms and the growing array of options. Growth in diversity of business forms includes social enterprise, employee ownership, public sector mutuals, listed company hybrids and community interest companies.

Speaking at the launch of the report, Mark Preston, group CEO of Grosvenor, said, “The best recent example of a failure to match form to purpose must be Southern Cross care homes collapse. The vulnerability of its residents and the rather obvious purpose of caring for them ought to demand […] a business form and ownership suitable to conservative financing.”

Read full article, Diversity in business forms can deliver sustainable growth, says report, Blue & Green Tomorrow, 26 Nov