Innovative Business

Dual Entity Membership Organization:
A New Model for Competitive Capitalism

Capital accumulation is fundamental to the survival of capitalism. It relies on individuals and businesses being able to reinvest existing wealth and make informed investment decisions. However, in the context of the United States’ two-tier economic system, significant challenges exist.

The Problem of Market Dominance

The top 1% of U.S. corporations hold significant sway over the country's economic and political systems. Their dominance allows them to expand while making it difficult for smaller businesses and entrepreneurs to compete, ultimately discouraging broader participation in capital accumulation and growth.

ChatGPT Image Dec 4, 2025, 02_46_08 PM.png

The Need for a New Business Structure

When a few large businesses dominate, small firms and
entrepreneurs cannot compete fairly. As markets become
monopolistic or monopsonistic, economic institutions lack
the tools to address these inefficiencies.

To protect capitalism from excessive corporate influence,
it's essential to develop a new, collaborative business model
that ensures fair competition. This would help small
businesses compete with large firms, lower entry barriers,
and prevent monopolies or monopsonies.

Leveraging Digital Economy Advantages

The digital economy offers entrepreneurs various tools to access modern competitive advantages. Nevertheless, many of these advantages are fragmented and unsustainable, as they do not address the underlying systemic issues.

The Dual Entity Membership Organization (DEMO) Solution

To make the economic system equitable for all American businesses and facilitate capital accumulation on a level playing field, the DEMO “Dual Entity Membership Organization” was developed, consisting of two
autonomous enterprises:

1. Membership Organizations: They are businesses in distinct fields owned and managed independently on a nationwide basis.

2. Central Hub Entity: Established exclusively to serve member companies. This entity helps achieve
economies of scale, lowering costs and enhancing competitiveness with large corporations. It provides services such as accounting, legal, IT, and financial management, as well as group purchasing of inputs at bargain prices, all on a contractual basis.

Conclusion

The Dual Entity Membership Organization offers a solutionto restore competitive market conditions. By enabling smallbusinesses to benefit from collective economies of scale andshared resources, DEMO enables them to compete withmega-corporations. It ensures that no single business canestablish a monopoly or monopsony power.The main goal of the DEMO is to redefine capitalism. Byincorporating ethical and human-centered principles, weaim to transform it into a system that fosters collaboration,innovation, and shared prosperity for all involved. Thisshift will replace uncontrolled gains by mega-corporationsand preserve the true spirit of capitalism.Ironically, employees' investment in higher educationcreated substantial returns for their employers. However,the return on investment in higher education has beenpromising. Still, it has also made their jobs riskier than everdue to job-market globalization, which has contributed tothe shrinking middle class since the 1970s.

Civic Innovation Center