It’s not that simple at all and your comment is disingenuous.
Given that, why would employees expect they ought to own the company without buying in as the other partners did?
1099 status in the US is almost as sucky
Also IR35 doesn't provide any of the workers rights that employees get such as sick pay or notice of termination.
It is a fact, but it's not the only relevant fact; a capability theory of rights, or a positive (rather than negative) conception of freedom invalidates your point. A freedom is practically useless (to the individual) unless you can actually take advantage of it.
Lack of capital. It's called capitalism, not "i have an ideaism" for a reason.
Take a successful factory, remove the officers and management, leave it to the assembly line workers - it's a good bet they will fail even if they have some cash to keep it going for a year.
And look at all the startups with insane $$ invested that failed.