Employee-owned firms in France

Abstract

Purpose France is the third country in Europe after Italy and Spain for the number of employee-owned firms, with some 2,600 worker cooperatives (SCOPs). The authors propose a comprehensive review of SCOPs and any barriers to their expansion.Design/methodology/approach The authors analyse relevant legislation; review the rich empirical economic literature on SCOPs; and offer new descriptive empirical evidence comparing SCOPs and other French firms.Findings SCOPs benefit from a consistent legal framework and a well-structured and supportive cooperative movement. Cooperative laws allow attracting external capital, provide barriers against degeneration and encourage profit allocations that favour investment and labour. SCOPs are distributed across a wide range of industries; are larger than conventional firms, as capital intensive, more productive and survive better. Despite this good performance their number remains modest, perhaps because of information barriers.Research limitations/implications An examination of the Italian and Spanish experiences and the relationship between SCOPs and the French labour movement might contribute to explaining the modest number of SCOPs.Originality/value The first comprehensive review of French worker cooperatives in four decades and the first with extensive comparative data on SCOPs and conventional French firms. With some of the best data on worker cooperatives in the world, findings have international relevance.