Don't have top-down capital via a holding company. Semi-franchise everything so businesses are cellular. Cells can succeed or fail. Capital can directly flow. We have had this with org structure, so why not ownership?
The kicker: the reversal of financialization and the creating of utility or servicing investment banks. Clean and transparent and easier to introduce social aspects of capital allocation.
This is about loang term alternative to the bank and asset manager capitalist system and creating a parallel system to compete with it. Call it what you want, community capitalism, but it can be more dynamic.
Financial services are too expensive and it needs to be simplified - even Dodd-Frank can't regulate it. To reduce the costs we can strip everything away and start from the basics: small cell-like company components.
We know organisation structures can deal with this but is we focus on coordinating each cell ownership, we can have banks for large corporations that are small and utility like.
So much more flexibility can exist: internal competition can increase and environmental & social rewards considered. A small group of investors may take a lower return if better non-financial rewards are provided: this is so much harder via top-down capital allocation.
But how can you make such a large game changer a possibility?
This idea is a great game changer and through adversity many new small business owners are already using other legal means of raising funds to get their businesses to market without the need of major high street lenders and loan companies.
The most popular way of funding in the last few years has been crowd funding by using social networking sites such as crowd funder and other such sites. For these new small businesses the power of community for funding has been a revolution in raising financial capital.
These new small businesses may very well become new major corporations but the difference will be how they raise and manage funds for growth in the future. It may well be that these organisations will use cell ownership to add services and secure the future for their owners and employees.
In the future the banking industry and finance houses will face stiff competition from community based lending schemes.People power will ensure new business owners get a helping hand when starting out by raising finances from the wider online community.
In terms of the organisational structure these new SME's will have to adapt to new ways of working. The traditional hierachy will disappear as every penny will need to be spent on innovation and people power to drive the business forward. Employee ownership and engagement will be key to growth and survival.
In return investors will get small returns on their investment by means of free products or discounts and services.
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