The traditional business model, in which shareholders own the company and determine on its direction, is under attack. Entrepreneurs are increasingly opting for alternative business models that go beyond short-term thinking. Is it possible to combine social entrepreneurship while maintaining a financially healthy business?
Steward-ownership is an alternative ownership model designed to prioritize the long-term well-being of a company and its stakeholders over short-term profit maximization. Steward-ownership separates ownership from control, ensuring that the company’s mission takes precedence. By entrusting decision-making to stewards committed to the mission, and reinvesting profits for sustainable growth, steward-owned companies prioritize social entrepreneurship and long-term sustainability. The core principles lie in the voting rights belonging to the people involved in carying out the company’s mission – the stewards – and cannot be sold or inherited. Profit serves the mission; they are reinvested in the company or are spent in line with the company’s mission.