7.1 The Way To Steward-Ownership

No equal access compared to other models

 

While steward-ownership has already proven to be a powerful solution and building block for many of the companies featured in this book, bringing it to life in today's world still comes with significant challenges. Founders and entrepreneurs who choose this path often face three main hurdles in an eco-system not yet built for them. Put simply, the path towards steward-ownership still is very hilly today:

 

1. Information and narrative

Many founders and investors simply do not know that steward-ownership exists as a viable option. The concept is rarely taught at schools and universities, discussed in entrepreneurial networks, in law and finance circles, or by business media. The mainstream business world's narratives are often still centered on maximizing shareholder value, achieving a lucrative exit and such. This lack of awareness and knowledge makes it difficult or impossible for entrepreneurs to even consider steward-ownership as an alternative.

 

2. Implementation

Even when a founder chooses steward-ownership, the legal and tax systems in most countries are not designed for it. This forces entrepreneurs to find their own ways and work arounds, a process that is often time-consuming and expensive. The high cost and complexity of implementation can become a major deterrent, preventing many from ever transitioning.

 

3. Capital

Finally, as you have learned in the chapter about steward-ownership aligned financing, the traditional capital market is a major challenge, as its dominant players are often built on a different logic. This systemic mismatch can make it more difficult for steward-owned companies to secure the funding they need compared to conventional business.

 

Because of these depicted hurdles, depending on the region, only a fraction of entrepreneurs who would move towards steward-ownership can actually implement it. These three hurdles persist in all regions but to varying degrees; depending on the region, they are higher or lower. If we want to help steward-ownership grow, make it known and accessible to everyone and unleash its potential for people, planet and society we tackle these challenges. The path to steward-ownership must be as accessible as traditional ownership models, allowing founders to freely choose the best model for their business.