Edinburgh Bicycle Co-op was formed in 1977 and claims to be the longest-established workers' co-op in Scotland. Far from having its spokes stuck in the past, however, this company is racing ahead on the retailing circuit.

Latest figures show a £10 million turnover.

As well as their original shop in Edinburgh, the bike co-op also runs shops in Aberdeen, Newcastle, Leeds and Manchester.  Every one of these 5 stores is the biggest bike shop in each of these cities.

The ethos of the organisation as a co-operative is central its business and the way it operates. The co-op status is proudly displayed at the front of all their catalogues. Once an employee has worked one year, they are invited to join the co-operative by purchasing a single voting share. (The cost of this share has historically fluctuated between £1 and £2 so there is no significant financial barrier to co-op membership).  The employee then becomes a co-op member - an equal owner of the business with full voting rights, plus a right to an equal share of any annual cash bonus issued by the co-op. 

The treasurer and sales manager for the Edinburgh branch, Andrew Chambers, admits the structure of the organisation can throw-up some odd situations: "Even though the managing director is my boss in the store, because I chair the co-op he has to come to me to ask for his holidays!"

He also acknowledges that the co-op has had to adapt its practices as it has grown to enable it to expand and remain profitable. For instance, the co-op is more likely to appoint senior management staff on the basis of their business background rather than just their expertise on two wheels.

Mr Chambers, who himself has previously managed a garden centre and an opticians, adds that, in addition to adapting the structure and management of the co-op, they have also had to work hard to prove themselves to investors. "The banks and lending institutions don't always understand the idea of a co-operative," he says. "The banks want to see us make a healthy profit and they want to be confident that we are capable of making hard decision. By acting responsibly, you can win the banks over."

But he adds: "The fundamental reason the co-operative exists is to give people an honest day's wage for an honest day of work."