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They can’t compete with businesses because they are more expensive yet generate less profit.
by nonethewiser 4y ago
They can’t compete with businesses because they are more expensive yet generate less profit.
- greenie_beans 4y agocan you please explain what you mean by this with some examples? there are worker-owned cooperatives that run as efficiently as businesses when considering expenses and profit.
- scotty79 4y agoFirst of you said the same thing twice because profit is revenue minus expenses so higher expenses with the same revenue mean less profit. I said the same thing that workers cooperatives aren't competitive because they have lower profit because they can't get expenses (on salaries) get that low because they can't exploit workers like the usual business does.
- s1artibartfast 4y agoAs I point out in a sibling comment, the main challenge is that they have more difficulty raising capital for creation or growth. In my experience, co-ops can be pretty efficient otherwise.