Cooperative Model vs. Investor-Driven ModelIn order to understand the real difference between our proposed business model and the standard business model, we must first go over a few terms. Stock: The capital raised by a corporation through the issue of shares entitling holders to an ownership interest (equity). Shareholder: A person who buys stock in a corporation, and therefore becomes a part owner of the corporation. Passive investor: A person who provides equity (an investor) for a business but does not participate in the active operation of the business; the opposite of an active owner/manager. Stakeholder: An individual or group with an interest in the success of an organization in delivering intended results and maintaining the viability of the organization's products and services. Stakeholders influence programs, products, and services. The standard capitalist business model is driven by the need to create profit for shareholders who have passively invested. They are not contributing and are not part of the chain, and merely put their money in in the beginning. We believe the people who should benefit are those involved, the stakeholders, instead of management that answers to mostly passive shareholders. What is the difference between our business model and the standard business model? The chain owns the chain. All stakeholders in the chain benefit by investing their time and money instead of relying on outside passive investors. |
