Perry: Worker-owned businesses require workers to spend time on management decision-making and investment strategy, tasks that are not directly productive. Also, such businesses have less extensive divisions of labor than do investor-owned businesses. Such inefficiencies can lead to low profitability, and thus increase the risk for lenders. Ttherefore, lenders seeking to reduce their risk should not make loans to worker-owned businesses.
In most worker-owned businesses, workers compensate for inefficiencies by working longer hours than do workers in investor-owned businesses most seriously weakens Perry's argument.