More startups should consider employee owned business models. First, the problems with the model. It goes against the grain of founder who feel entitled to exclusive rights to ownership, authority and incentives. It mitigates against investors who require control that mitigates against employee ownership. It requires more process intelligence in the organization than usual.
On the plus side, it energizes innovation and engenders loyalty. It attracts talent it wouldn't attract otherwise who would be more committed with the passion of co-owners than entitled employees. It increases productivity because a sense of ownership increases engagement. And, these kinds of businesses more likely cultivate new entrpreneurs which grows local economies.
