There are studies showing that workers coop are more resilient than hierarchical capitalist business.
" Survival of Worker Cooperatives Compared to Conventional Businesses
Starting any kind of business is risky: less than half of all businesses survive beyond year five. Worker co-ops are not immune from this. However, “[t]here is a growing literature on the survival of [worker cooperatives (WCs)], which indicates that while a significant percentage of them fail—especially during their early years—they do not fail at a rate that exceeds that of [conventionally-owned firms (CFs)]. Instead, once created the expected survival of WCs meets or exceeds that of CFs.”1
Professor Erik Olsen surveyed studies that evaluated hazard functions (the probability of not surviving the midpoint of a 12-month period) of WCs compared to CFs. Because this data is not available for WCs in the United States, the research relied on studies from the UK, Canada, Israel, France, and Uruguay. Olsen found across the studies that:
● WC hazard rates were lower than CF rates in those countries or in the US
● Like CFs, WCs experience an elevated hazard in their early years, but it peaks at year two or three for WCs and year one for CFs
● Early survival and median lifespan of WCs meet or exceed that of CFs
● WCs appear to have comparable long-term survival rates to CFs2
Olsen concluded that existing research does not support the proposition that WCs, once formed, are at a competitive disadvantage to CFs.
European studies echo these results. For example, statistics from France showed a particularly high survival rate of conversions of conventional companies into worker cooperatives: there was a three-year survival rate of 80-90% for these cooperatives, converted from “in crisis” or “sound” enterprises, respectively. Compare this to a 66% three-year survival rate for all French enterprises. Likewise, the five-year survival rate of cooperatives formed from existing businesses was 61-82%; this figure for all French businesses was 50%.3 "
https://www.co-oplaw.org/knowledge-base/worker-cooperatives-performance-and-success-factors/
m4dire0701
npub1l0…k7zqa
2024-10-28 00:59:16
in reply to nevent1q…7360
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2024-10-28 00:59:16Event JSON
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"content": "There are studies showing that workers coop are more resilient than hierarchical capitalist business.\n\n\" Survival of Worker Cooperatives Compared to Conventional Businesses\n\nStarting any kind of business is risky: less than half of all businesses survive beyond year five. Worker co-ops are not immune from this. However, “[t]here is a growing literature on the survival of [worker cooperatives (WCs)], which indicates that while a significant percentage of them fail—especially during their early years—they do not fail at a rate that exceeds that of [conventionally-owned firms (CFs)]. Instead, once created the expected survival of WCs meets or exceeds that of CFs.”1\n\nProfessor Erik Olsen surveyed studies that evaluated hazard functions (the probability of not surviving the midpoint of a 12-month period) of WCs compared to CFs. Because this data is not available for WCs in the United States, the research relied on studies from the UK, Canada, Israel, France, and Uruguay. Olsen found across the studies that:\n\n● WC hazard rates were lower than CF rates in those countries or in the US\n\n● Like CFs, WCs experience an elevated hazard in their early years, but it peaks at year two or three for WCs and year one for CFs\n\n● Early survival and median lifespan of WCs meet or exceed that of CFs\n\n● WCs appear to have comparable long-term survival rates to CFs2\n\nOlsen concluded that existing research does not support the proposition that WCs, once formed, are at a competitive disadvantage to CFs.\n\nEuropean studies echo these results. For example, statistics from France showed a particularly high survival rate of conversions of conventional companies into worker cooperatives: there was a three-year survival rate of 80-90% for these cooperatives, converted from “in crisis” or “sound” enterprises, respectively. Compare this to a 66% three-year survival rate for all French enterprises. Likewise, the five-year survival rate of cooperatives formed from existing businesses was 61-82%; this figure for all French businesses was 50%.3 \"\n\nhttps://www.co-oplaw.org/knowledge-base/worker-cooperatives-performance-and-success-factors/\n\n",
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