Pre-COVID Next Economy for a COVID Word

Camille Canon + Derek Razo “Rethinking Ownership for Long-Term Mission-Alignment and Independence:” Camille Canon is an entrepreneur who has founded and led startups in tech and real estate development and community building. Derek Razo is an entrepreneur and technologist with a passion for social change. Derek and Camille are co-founders at Purpose Network.

Derek starts by restating a theme of this seminar, that business as usual has exceeded our planetary boundaries. He explains that profit maximization will lead, even the best intended companies, toward mission drift.  Capital infusion can mean loss of control of purpose. Mission driven entrepreneurs have been presented with a dilemma when it comes to getting more capital and developing their exit options. Purpose Network provides corporate structure planning that addresses these flaws.  The solution lies in changing how businesses are owned, controlled and capitalized.

Purpose Network helps set up the legal structure for mission-driven stakeholders and leads companies to innovative financing and purposed ownership.  “We have found that steward-owned companies are better for business, employees and the environment.”  Steward-owned companies are self-governed by the people actively engaged in the business. Steward-owned companies profits are reinvested, distributed to stakeholders or donated. Bosch GmbH is a good example.

I found Derek and Camille’s content challenging and, more important, valuable.  Steward-ownership is an accessible and substantial way to re-purpose an otherwise demonstratively destructive invention – the corporation.  The process of changing a corporate structure is not a process of instant gratification. However, those looking for a real game changer can anticipate a good deal of demand for Purpose Network type corporate structural guidance. “Eighty percent of small businesses are owned by baby boomers, so we are in the middle of the biggest … capital ownership transfer, in the history of our species.” Many small family businesses don’t have heirs and will be acquired and dismantled by private equity and asset manager if their founders do not seek a better alternative

Steward-ownership company partners have emerged within regional economic development agencies, evergreen – long-term asset holdings, and tax management strategy firms.  The steward corporate structure has many variations and it will become an even more substantial part of a successful people first economy. Derek and Camille’s bonus: “Steward-Ownership: Rethinking Ownership in the 21st Century”