The point he is making is about worker cooperatives, rather than firms in general. A widely recognised problem with worker cooperatives is that there are disincentives to scale because adding more workers is a cost to the existing coop owners. So, the point doesn’t apply to privately owned companies because adding workers do not get a share of the business
As presented, the efficiency claims seem to be agnostic about firm structure, while the worker coop-specific parts are about credit/profit allocation. (As usual, I could of course be misreading)
The point he is making is about worker cooperatives, rather than firms in general. A widely recognised problem with worker cooperatives is that there are disincentives to scale because adding more workers is a cost to the existing coop owners. So, the point doesn’t apply to privately owned companies because adding workers do not get a share of the business
As presented, the efficiency claims seem to be agnostic about firm structure, while the worker coop-specific parts are about credit/profit allocation. (As usual, I could of course be misreading)