Bocoup Is Now Worker-Owned

Bocoup Is Now Worker-Owned
bocoup.com

I’m curious why aren’t there more and why they generally have mediocre success if not failure

Ownership structure doesn't change many of the business risks, but coops can avoid the "expand or die" that sometimes normal companies experience.

The largest coops are mutuals (think: insurance) and banks (think: credit union).

Others exist in farmer's coops (Land o' Lakes, Dairy Farmers of America, etc).

https://ncbaclusa.coop/blog/2022-world-cooperative-monitor-r...

The hardest part is converting an existing corporation into a coop.

The vast majority of coops are, like credit unions, relatively small and local. Instead of expanding to new areas, they often "split" into new areas, so you'd expect them to remain just below the noise threshold of the large multinationals.

Americans rejected this worldview in the recent presidential election. While I have no issue with people advocating for their flavor of justice, I can't imagine this being the most savvy business decision in the current climate. I certainly would not be interested in hiring or working with an agency for whom caustic ideology appears to be more important than any other concern. Their hostility towards people with my skin color is palpable.

[1] https://www.washingtonpost.com/graphics/2020/national/george...

Cooperatives face complex tax structures that can be less advantageous compared to traditional corporations. Unlike C-corporations, which have clear tax advantages and deductions, cooperatives must navigate unique tax rules, such as Subchapter T of the IRS code, which governs patronage refunds.

The tax code heavily favors investor-owned firms through incentives such as lower capital gains taxes and deductions for stock-based compensation, which cooperatives do not benefit from in the same way.

Beyond that, banks and financial institutions are often hesitant to lend to cooperatives, as their ownership structure does not provide the same level of collateral or control as investor-owned firms. Government-backed loans and grants that support small businesses often don't adequately accommodate cooperatives. For instance, SBA loan programs historically have been difficult for cooperatives to access.

And because co-ops are a niche business structure, many federal and state laws are designed with traditional corporate structures in mind, making it difficult for cooperatives to navigate compliance requirements. Cooperative incorporation laws vary by state, leading to inconsistent legal protections and administrative burdens.