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Updated: August 4, 2026
Its defects are, first, that it is difficult while that regime lasts to find capital enough-since those who have capital to invest usually prefer to manage the business themselves or to entrust their money to a business conducted on ordinary lines; secondly, that failure means the loss of the hard-earned savings of workingmen; thirdly, that it is difficult to retain skillful managers, since such men usually prefer the opportunities which individualistic business offers of making a larger income; and fourthly, that it is difficult for a democratically managed concern to compete successfully with autocratic business.
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