> It just doesn’t make sense for the average person to start their own cooperative, especially in any competitive domain. The risk-to-reward ratio is totally skewed towards the wrong direction.

This is really insightful and almost fully explains why there aren't more co-ops. Entrepreneurship AND capital aren't being materially rewarded for the huge amount of risk, so both founders and investors have zero interest in trying out the model, unless they're unusually missionary minded about the co-op model. That's two factors of production out the window. I think this is why market socialists often advocate for the government to ban traditional shareholder-owned corporations and force everyone into the co-op model, with capital allocation initially handled by a government bureaucracy. Founders and investors actually can't get there voluntarily due to high risk receiving little reward.