Ethex is proud to have been a sponsor at this year’s Democratic Business Summit, held at Glasgow’s Barras Art & Design and hosted by the Centre for Democratic Business. The day event brought together policymakers, business leaders, academics and funders to explore one vital question. How can we grow and finance more democratic businesses across the UK?

Why democratic businesses matter

We believe that democratic businesses, including co-operatives, community benefit societies and employee-owned enterprises, are a cornerstone of a fair, wellbeing-focused economy. These are businesses built on shared ownership, collective benefit and local empowerment that fairly distribute wealth and focus on long-term community value rather than short-term profit.

They represent an alternative to conventional shareholder capitalism and put the power and profit in the hands of workers and communities. As we heard throughout the summit, this is about creating an economy that serves people and the planet, rather than the other way around.

The challenge of funding democratic businesses

One of the consistent themes at the summit was the need for more accessible, values-aligned finance. Democratic businesses often face unique funding barriers. Traditional investors tend to prioritise control and rapid returns and these values are often incompatible with democratic governance.

Participants in one workshop discussed new ways to bridge this gap, from policy interventions and patient capital to the creation of new public or mutual financial institutions designed specifically to unlock democratic business growth. There was also the potential for co-operatives to invest in other co-operatives, creating networks of mutual support.

The Ethex perspective: Democratising finance for a fairer future

At Ethex, we know that funding is one of the greatest challenges facing democratic businesses, particularly in the start-up and growth stages. That’s why we’re dedicated to democratising finance and making investment more inclusive, transparent, and aligned with people’s values.

A democratic economy needs democratic finance. That’s why Ethex works with:

• Co-operatives, community benefit societies and profit-for-purpose businesses seeking to raise investment

• Foundations, businesses and institutions exploring co-funding or match-funding opportunities

• Policymakers wanting to create a more inclusive financial system

• Ordinary people wanting to invest in real difference in their communities.

By aligning finance with democratic ownership, we can help unlock the potential of thousands of community-led enterprises driving real, local change.

Through our platform, we enable everyday people to invest directly in community and co-operative enterprises that create measurable social and environmental impact. And by partnering with government and institutional funders, we help to unlock larger pools of capital that amplify the impact of everyday investors.

This model fits perfectly with our long-held vision of a fairer financial system where money works for the many, not the few and where wealth and benefits are kept within communities.

A growing movement

It is heartening to see the momentum behind democratic business building. With commitments in Westminster to double the size of the co-operative and mutual sector, and Scotland’s Community Wealth Bill paving the way for local, community-led economies, the time to act is now.

It is great to see such energy and ambition at this year’s summit in discussions about place-based finance and the potential of new democratic funding architectures.

Join the movement

Ethex is proud to stand alongside many organisations championing this change. We believe that when businesses, funders, investors and policymakers work together, we can build an economy that really does serve everyone.

If you’re a democratic business looking for funding and want to learn more about the power of community investment, we’d love to hear from you.

A big thank you to the team at the Centre for Democratic Business for organising this important event.