For the Mondragon cooperatives, capital is something they rent to benefit the worker-owners. To Americans, this sounds like an Employee Stock Ownership Plan, but the Mondragon model is not only about distribution of the profits, it is also about the control of the business. Management is elected by the workers, not hired by the money men, and the managers are part of the cooperative process in the enterprise. Each enterprise has a social committee that considers issues of health, safety, environment, and the social responsibilities of the enterprise. Capital is borrowed, stock is not sold for financing.
All new employees become worker owners.
A new cooperative begins with a group of friends. Experience in starting 120 businesses over a 40 year period has taught the Mondragon cooperators that the pre-existing bonds of friendship are a good basis for building a productive working relationship. The group may be assisted into another line of business or work. As a result, since 1956, they have had only one total failure of a cooperative. These funds may be borrowed against at the cooperative's bank at very low interest rates, and are important parts of the social security arrangements.