Cable marked the first national Employee Ownership Day by launching guidance to help businesses move to employee ownership.
"The evidence is clear that employee-owned businesses not only help us build a stronger economy, but boost the retention, innovation and motivation of their employees," Cable said at a conference in London today.
The Government has also launched a consultation on the best way to provide tax reliefs to encourage employee ownership.
Deputy prime minister Nick Clegg said the benefits of employee ownership are clear.
"Staff who have a stake are more motivated and are rewarded for thinking in the long-term," he said.
"That's good for business and good for families, as it means lower absenteeism and lower levels of staff turnover."
Clegg said the Government is setting aside £50 million each year to incetivise businesses and employees to adopt employee-owned business models.
"Giving hard-working people a real stake in their company is a hugely underused tool in unlocking growth. This straightforward new guidance will help firms of all sizes realise their potential, boosting staff motivation and laying the foundations for growth," said Clegg.
The documents that will reduce the complexity of moving to employee ownership include:
- BIS guidance for employees who want to request a move to employee ownership that had been endorsed by Acas.
- Model documentation on a move to employee ownership by Pett, Franklin and Company with accompanying BIS and HMRC guidance.
- Guidance from the Employee Ownership Association explaining the different models of employee ownership.
- Guidance from Co-operatives UK on how co-operative principles and ways of working can be implemented into employee owned businesses.
The Employee Ownership Association, in conjunction with the Government, has held a number of events to discuss the employee-owned business model.