this post was submitted on 27 Feb 2025
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You don't finance it, you take a loan from a bank on the company. If the company folds, it goes bankrupt, not you. You don't take anymore risk than the other workers.
If the company is dead, you're still a human and now just another worker on the job market. You don't go to jail for going bankrupt.
You still take all the risk because the bank is going to say they won't give a loan to a new company without a track record, unless someone is willing to be a guarantor.
Now you share the profits, but all the risk is yours.
Unless you have a bunch of people lined up to start the co-op and they're all willing to pitch in or become guarantors with you, in which case it might just work - but again, the initial people are going to have more skin in the game than the rest.
Then go ahead and start one :D Good luck finding a bank that gives you an unsecured loan to start a business.
Eh, banks give out loans for people to start restaurants all the time, and restaurants are notoriously risky businesses. There's hundreds of worker-owned co-ops in the States, so it's not impossible to find a bank that will fund them.
And if you want a reward for founding a business but want it to be a co-op there are methods thst are reasonable and fair like selling it bit by bit to the employee union at a reasonable price or willing your company to your workers.
** Citation needed.
Looks outside
This unironically