[fallingfrog]

It's hard to raise money for such a business, because venture capitalists typically aren't willing to loan a new business money- they want ownership equity for their money. And at that point it's no longer employee owned. In fact small business loans specifically exclude any new business from consideration- established businesses with documented profits only, thank you very much. So usually employee owned businesses start out privately owned and then the employees buy out the original owners at market prices. I think there is hope though- there are financing options for cooperatives starting to appear here and there, still on a very small scale though.