I think in part your solution is on the right track but not the complete answer (hell, I don't think I have a complete answer myself). In my opinion, the additional work would need to be done to focus on further decentralization of governments and businesses since both have been on a trend toward further centralized bureaucracies that rarely respond to their respect stakeholders (citizens and consumers). In my view that would mean businesses should be held in common by the workers as a term of employment. Think of it was a credit union but you just happen to work there. Entrepreneurs and managers will always be in the mix of this because honestly individuals sometimes get good ideas but they shouldn't be off the hook with incredibly vast sums of wealth as to allow them to create their own fiefdoms. After all, they too are just one person in an ocean of people.
What's funny about this idea is that it's not mine. I remember a long time ago that I use to go on a web forum on the New Speak Dictionary site. The site owner styled himself a Libertarian Syndicalist and he espoused very similar views here. I think it's inevitable that this might become the normal state of things if people become aware of this possible alternative to centralized state vs centralized business.