This is a preprint of a paper developing three themes, capital structure, active learning, and spinoffs, with special attention to the Mondragon cooperatives.
This is an old 1984 study of the 286-paged business planning manual, Plan de Gestion Anual de la Empresa (Annual Management Plan for the Enterprise) of the Empresarial Division of the Caja Laboral Popular, the bank in the Mondragon system of cooperatives. The remarkable thing about the Mondragon method of business planning is that they started with the number of members working in the cooperative and then planned production and sales to keep them on the job during the year.
The Obama economics team seems trapped by rather conventional job-creation ideas, e.g., Keynesian pump-priming or tax breaks for small businesses, ideas whose main virtue is that they are better than the opposition’s ideas of more tax breaks for the rich. But there are other ways to increase job creation and entrepreneurship that have been hindered by the size-maximizing tendencies of American corporations.