The secretary of state for business, innovation and skills has called for an examination of what the private sector could learn from successful mutuals.
Vince Cable said that although mutuals had historically struggled with an inability to raise capital quickly, they had shown particular strengths, including a close link to their customers that could be an example for businesses more generally.
He said: “How do we try to ensure that some of the attractive elements of mutuals apply to the corporate system more generally?
“Mutuals are more tuned into their customers. There is also the idea of long-term ownership, providing long-term stability.”
Mr Cable praised John Lewis as an example of a mutual that was being innovative and remaining competitive at a time when other retailers, such as Tesco and Sainsbury’s, were fighting to defend their market share from discounters such as Lidl and Aldi.
But he said that more analysis was needed on how successful mutuals operated.
He said: “Somehow we need some good analysis of what makes the really successful financial mutual tick.”
Mr Cable was speaking at an event held by London Business School.
