Ownership is such an empowering concept it is a bit of puzzle why there aren't larger numbers of employeed-owned companies. There is definitely a historical / cultural aspect to this:
Exhibit 1: In agricultural societies land ownership was highly concentrated for the longest time (feudal society) before there were land reform movements [1].
Exhibit 2: Owner-occupancy is celebrated in many cultures but less so in others. E.g., it ranges from 10% to near 100%. [2]
Given that modern corporate organization and culture is typically endured (pays the bills) rather than loved and given that legal frameworks to establish alternatives do exist, there must be various fundamental reasons for the ESOP paucity (beyond the obvious resistance of vested interests).
One explanation might be that if judged purely on financial returns (i.e., ignoring the externalities of bullshit jobs, burned-out, disillusioned employees etc.) - the advantage of employee ownership in securing financial returns (especially short term) is not dramatically higher than a conventional external shareholder entity.
The problem with employee wholely owned organizations is the employees at the primary location aren’t typically incentived to grow the business beyond their area.
The primary location would need to set aside profits to fund new locations and their money would go towards new employees.
Most employees, especially ones living pay check to pay check would much rather take the check than use that money to pay someone else.
Exhibit 1: In agricultural societies land ownership was highly concentrated for the longest time (feudal society) before there were land reform movements [1].
Exhibit 2: Owner-occupancy is celebrated in many cultures but less so in others. E.g., it ranges from 10% to near 100%. [2]
Given that modern corporate organization and culture is typically endured (pays the bills) rather than loved and given that legal frameworks to establish alternatives do exist, there must be various fundamental reasons for the ESOP paucity (beyond the obvious resistance of vested interests).
One explanation might be that if judged purely on financial returns (i.e., ignoring the externalities of bullshit jobs, burned-out, disillusioned employees etc.) - the advantage of employee ownership in securing financial returns (especially short term) is not dramatically higher than a conventional external shareholder entity.
[1] https://en.wikipedia.org/wiki/Land_reform
[2] https://en.wikipedia.org/wiki/Owner-occupancy