I dont make a research project but i have a suggestion

Wellbeing Economies Research: masters/Phd students
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Concept: Employee Financing to Reduce the Pressure to Grow

Problem
Companies today are mostly financed through banks and shareholders. Both demand returns and growth. When the economy shrinks, banks withdraw credit and shareholders sell. Result: investment freeze, layoffs, downward spiral.
Outcome: companies have to grow, even when it makes no ecological or economic sense.

Idea
Allow and promote companies to borrow money directly from their own employees. Employees have an interest in the company’s survival, not just in maximum returns. This reduces the pressure to expand.

How it works

  1. Legal framework
    Create a new category “employee loans” below the prospectus requirement. Up to 20% of annual salary per employee, max. €50,000 per person, with a simple standard agreement.
  2. Safeguards
    • Limit to max. 30% of total assets to reduce concentration risk.
    • Deposit insurance for employee loans up to €20,000 through an industry fund financed by a small contribution from the company.
    • Employees get information rights, but no automatic voting rights. Optionally through an employee council.
  3. Incentives
    • Treat interest on employee loans for tax purposes like retirement provisions.
    • Companies that finance >15% of their funding through employees receive reduced trade tax or access to KfW loans on better terms.
  4. Goal
    • Capital stays in the middle class instead of flowing to funds and the super-rich.
    • Companies can remain stable during shrinkage because capital providers go along.
    • Growth becomes possible, but not forced.

Expected Impact

  • Less pressure to grow: Companies can remain stable without 3% annual revenue growth.
  • More crisis-resilient: In recessions, financing does not collapse entirely.
  • Fairer: Returns on capital go to the workforce, not primarily to external investors.
  • Practical: Builds on models that already work in cooperatives and family businesses.

Example
A 200-person company wants to renovate a workshop hall. Instead of €2 million from a bank at 5%, it takes €1 million from 80 employees at 2.5%. The company saves on interest, employees get more than on a savings account, and in case of order declines, layoffs are not immediate because everyone has an interest in keeping the company alive.

Next Step
Pilot project with 20–50 medium-sized companies over 3 years, scientifically monitored. If successful, nationwide rollout.

3 Likes
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Thanks for sharing this. Tagging @Michael, who focuses on Business and Finance, who may have thoughts on this!

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Hello @Alexander1993 . The idea is interesting. I would want to know (which I don’t) exactly how much funding businesses receive from external shareholders and banks versus other financing vehicles to know whether/how this idea might fly. I would also imagine rules differ by country on employees investing in their own firms. But on paper, it looks like a better way of having funds recirculate rather than be extracted. Michael

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I hope i do it right , this Information i found

What percentage of company capital when borrowing is debt capital
The share of debt capital in total capital (also called leverage ratio or debt-to-equity ratio) varies greatly depending on industry, company size, and business model. Here are some general benchmarks and examples:

*Average debt-to-equity ratios by industry (Germany/Europe)*
Sector Debt capital ratio (approx.) Notes
Industrial companies 50–70% High investments in machinery/equipment
Retail 40–60% Lower fixed asset investments, more current assets
Services 30–50% Fewer physical assets
Technology/Software 20–40% Often capital-light, high equity ratio
Energy utilities 60–80% High infrastructure costs
Real estate 70–90% Heavily debt-financed through mortgages
Start-ups 0–30% Often little debt capital, high equity ratio (e.g. from investors)

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Can you check if my Informationen is true ?

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It might be good if the workes sometimes win money and sometimes lose money , so that there is no pressure to give more money back as much they got so they dont have to grow .

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Workers could invest because they want that their company stays alive .