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Nothing stops anyone from structuring a new business like this. Many professional service firms such as private medical clinics and law firms are structured as
by seibelj 4y ago
Nothing stops anyone from structuring a new business like this. Many professional service firms such as private medical clinics and law firms are structured as partnerships, which is a co-operative type of entity.
The tricky thing is building a product-focused business like this. The risk-reward ratio is very different. Most fail and few succeed massively. Succeeding massively often requires extreme hard work and ingenuity from top employees.
Personally I would never work at, nor invest any money, in a co-op. Same reason I will never invest in a public benefit corporation. I don’t see the economy as charity and I prefer to donate money to overtly non-profit entities rather than donating to “I am willing to make you less money” for-profit entities.
- zozbot234 4y ago> I don’t see the economy as charity and I prefer to donate money to overtly non-profit entities rather than donating to “I am willing to make you less money” for-profit entities. Somewhat counterintuitively, "I am willing to make less money" can be unusually effective, if the difference in how much money you're making is small enough. The intuition is that in non-fully-competitive settings, the creation of quasi-rents has quadratic costs on the economy as a whole, much like any other tax. So giving up a tiny bit of quasi-rent in an elastic market has outsized positive effects.
- Apocryphon 4y agoYou wouldn’t work at or invest in Etsy, Veeva, Coursera, Kickstarter, Patagonia, or Warby Parker?
- seibelj 4y agoCorrect