Industrial Common Ownership Finance Fund (ICOF)

The Industrial Common Ownership Finance Fund (ICOF), originally and sometimes still known as the Industrial Common Ownership Movement (ICOM), is a UK-based organization dedicated to supporting worker co-operatives and other forms of democratic, employee-owned businesses through financing and business support. Established in 1976, ICOF emerged from a growing desire to foster a more equitable and democratic economy.

ICOF provides crucial access to finance for worker co-operatives, particularly those that struggle to secure funding from traditional lenders. Many mainstream financial institutions are unfamiliar with the worker co-operative model, perceiving them as riskier than conventionally structured businesses. ICOF fills this gap by understanding the unique characteristics of co-operatives and providing tailored financial products. These products include loans, loan guarantees, and sometimes equity investments.

Beyond financing, ICOF offers comprehensive business support services designed to strengthen the operational and strategic capabilities of worker co-operatives. These services encompass business planning, financial management, governance training, and marketing assistance. This holistic approach recognizes that financial support alone is insufficient for long-term success; a strong organizational structure, skilled workforce, and effective management practices are equally vital.

The organization’s focus is not solely on providing capital; it’s on fostering a sustainable and resilient co-operative sector. ICOF actively promotes the worker co-operative model as a viable alternative to traditional corporate structures. By demonstrating the economic and social benefits of employee ownership, ICOF encourages the creation of new co-operatives and the conversion of existing businesses into worker-owned enterprises.

ICOF’s impact extends beyond individual businesses. By supporting worker co-operatives, the organization contributes to a more democratic and inclusive economy. Employee ownership empowers workers, gives them a greater stake in the success of their businesses, and promotes a more equitable distribution of wealth. It also fosters a more engaged and productive workforce, leading to improved business performance and greater job satisfaction.

ICOF operates as a revolving loan fund, meaning that repayments from previous borrowers are used to finance new projects. This model allows the organization to continuously reinvest in the co-operative sector and expand its reach. Over the years, ICOF has supported hundreds of worker co-operatives across a wide range of industries, demonstrating the versatility and adaptability of the co-operative model.

In conclusion, ICOF plays a critical role in supporting and promoting worker co-operatives in the UK. Through its provision of financing and business support, ICOF empowers workers, strengthens communities, and contributes to a more equitable and sustainable economy.