Can worker’s cooperatives be successful?

Hamilton Nolan/How Things Work: Interview with Erik Forman, labor activist, and creator of The Drivers Cooperative (via Tracy Durnell). Three points I found interesting were Erik’s comments about (1) businesses could be capitalized (started) for $200K-$300K in loans, (2) “… could we just start companies that are owned by workers from the start, and are therefore run by workers in their own interests, and return wealth to the community instead of extracting it?”, and (3) “The main barrier is access to capital. We can build businesses that generate profit, but because the business is worker-owned, it doesn’t fit in the normative forms that venture capital prefers, and there really isn’t a large supply of risk capital for initiatives that serve a social purpose. It’s kind of the entire problem of capitalism, right? Workers don’t have capital. Definitionally. Otherwise we would not be workers.”. I enjoyed the article, and thought about myself as a career worker. I think that most people want a job, not a business, that starting and running a business is too much work, they would rather be paid for their labor and not deal with the other aspects of business ownership. For people working in the tech industry (computers, aviation, whatever tech you want to look at), it seems to me that there may be opportunities at the low end (small businesses), but few examples of cooperative business with a large number of employees. Certainly something to think about….

Charles Hugh Smith: Our Tax System is an Unfair Mess: Here’s How to Fix It – Make the U.S. attractive to labor and capital with low rates and a simple, fair tax system and the populace and economy will benefit.

Can Packt Publishing be making any money?

Recently, I was looking for some books on developing desktop applications for Ubuntu. It seemed that Packt Publishing had the most recent titles, which was one of the criteria I was using for selecting the books. However, I noticed that many of them were available as E-books for $5, compared to a hard copy price of $50 or more. After my searching, I then saw numerous Packt ads highlighting the $5 price. How can they (or their authors) be making any money at that price? To me, this removes incentive to spend the effort to create a book of 300 pages or more to sell for $5 a copy. Am I missing something here?

 

Paying for the development of software

I recently read a post on funding of software developed for academic/research use, the author stated that many grants are for new applications, and that funding agencies should consider supporting existing open source software that goes unfunded. There were links to papers such as the development of AstroPy, and a report by Nadia Eghbal on funding of Internet digital infrastructure development.  I have touched on this topic before in a recent post about the development/funding story of the Node Package Manager. All of these stories touch on some common problems:

  • People write software, put it out on the web, people use it or they don’t.
  • If a lot of people start using it, and start asking for features/fixes, how do those get done? How do the developers get reimbursed for their time and effort?
  • What if a business uses open source software at no direct cost? How can they depend on that software being supported and available?

Businesses that develop physical products that contain custom software pay for that software as part of the development cost of the product. This may be the best example of funding for software development.

To me, the idea of a subscription fee makes the most sense. The user paying a fee gets a specified level of support, for example, or early access to new versions. The developer gets a steadier stream of income than one-time payments (like for smartphone apps). There are other problems to address that I am not going to solve in this post, but people who develop applications should consider these topics before starting (they should “count the costs”).