Banks can also be co-owned by the workers, perhaps some less risk averse depositors. Risky is a relative term... what are banks going to do with their money if that's one of the only few investments available?
Also some loans might be guaranteed by the government, like it happens with some today, if they are for companies in a inherently risky but promising industry.
Small businesses do. Business that dont have high capital costs do.
But any industry with high capital costs, hardware, electronics, automobiles, consumer appliances, pharmaceuticals all have massive start-up costs that bank loans wont work for.
You think Tesla would ever exist with just bank loans?
> You think Tesla would ever exist with just bank loans?
Who knows what would be possible in a world where GE was a company owned and managed by the workers. Maybe no one would cancel EV1. Relying on billionaires to chip in on a new ideas is really fickle.
Also some loans might be guaranteed by the government, like it happens with some today, if they are for companies in a inherently risky but promising industry.