What are Inclusive, Democratic Business Models (IDBMs)?

Ciaran Armstrong

Sustainability Professional | Facilitator
Sustainable Business
Sep 17, 2024
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In the wake of the Scottish Government’s commitment to a fairer, greener, and more resilient economy, the spotlight is now on Inclusive Democratic Business Models (IDBMs) as a transformative force. But what exactly are these models, and why are they gaining attention as critical to Scotland’s future?

IDBMs refer to business structures that prioritise economic democracy, inclusivity, and sustainability. These models give employees and communities a genuine stake in decision-making processes and profits, fostering a shared sense of responsibility and investment in long-term success. Examples include worker cooperatives, employee-owned businesses, and social enterprises—all designed to distribute wealth, support fair work, and benefit the environment.

Globally, IDBMs are a significant economic driver, with over 280 million people employed in these models, representing 10% of the world’s employed population. Far from being niche, IDBMs are thriving across industries, offering innovative ways to address inequality, environmental challenges, and the growing demand for more equitable business practices.

Why IDBMs Matter for Scotland's Economic Future

The Scottish Government has outlined its ambition for a thriving, fairer economy rooted in economic democracy, and IDBMs are central to this vision. A recent report highlighted that IDBMs are essential to Community Wealth Building (CWB) and play a key role in the government's five-pillar model for economic transformation.

IDBMs offer numerous advantages, such as:

  • Fair wealth distribution among workers and communities
  • Resilient supply chains and local economies
  • Greater social and environmental impact
  • Enhanced employee engagement and innovation

As part of the government’s strategy, there’s a goal to triple the number of IDBMs in Scotland by 2034, reflecting the growing recognition that these business models are key to a sustainable, inclusive economy.

Our Approach: Developing IDBM Skills Pathways

At Sustainable Pathways, we’re deeply aligned with Scotland's commitment to fostering inclusive and democratic business practices. To support the growth and development of IDBMs, we offer a range of skills pathways designed to empower start-ups, new organisations and existing ones to adopt these transformative models.

We believe our emphasis on fun, engaging and interactive training is a missing part in this transition. Tedious training and monotonous modules won't inspire the change we need to see.

Live Sustainability Training with BT and Small Business Britain

Our IDBM Skills Pathways Include:

1. Sustainability Skills Pathways

Tailored to help businesses integrate sustainable practices, from impact assessments to advanced modules on sustainable business models that align with IDBM principles. We provide the tools needed to create an impact business model.

2. Diversity, Equity, and Inclusion Pathways

Fostering a workplace culture where diverse voices thrive is key to the success of IDBMs. Our DEI pathways cover everything from psychological safety training to advanced equity strategies, ensuring your organisation is inclusive and resilient.

3. Leadership Development Pathways

Our programmes equip leaders with the skills to drive democratic decision-making. From emotional intelligence to strategic alignment, we help build leaders who champion inclusive governance and empower teams.

Moving Forward: The Future of IDBMs in Scotland and Beyond

As Scotland seeks to mainstream IDBMs across sectors, the need for robust training and development is more urgent than ever. Our mission is to be at the forefront of this change, offering modular, flexible training aligned with the UN Sustainable Development Goals (SDGs).

The future sits with those businesses who embrace inclusive, democratic practices that are made with purpose and built for impact - and we’re here to enable them.

If you’re interested in learning how we can support your organisation in transitioning to an IDBM?

Get in touch or explore our IDBM Skills Pathways to discover how you can be part of the impact business revolution.