The sharing economy is upon us as a direct result of
the Internet and its ability to move information around the globe quickly. The lean
years since the Great Recession has further fueled an entrepreneurial spirit
that tries to hedge income and opportunities through micro-businesses. Large companies
are adjusting their structures to reduce costs and improve upon operational
functioning. Will the sharing economic and Information Age adjust the way we
think, interact, and conduct business?
Things don’t often change quickly and it takes time
for people to understand and develop methods of realizing goals. The sharing economy encourages people to interact
with each other by using technology on an economic, ecological, and
sociological level (Dubois, 2014). They connect together and share resources to
create opportunities. On a micro level
this collaboration builds new possibilities.
Companies are finding benefit in working with other
companies and stakeholders to generate higher levels of efficient and effective
operations. Excess capacity can be sold during the slow times or purchased
during the growth periods without enduring large outlays of capital
expenditures. This creates flexible economic growth that better fills in the
gaps between the larger economic pieces.
Building a stronger economy requires the connecting
of people through collaborative and cooperative participation (Schultz, 2013).
Information transference and understanding of the environment encourages
effective economic decisions to create better market adjustments. Helping
individuals connect to the system, voice their opinions, share information,
further their skills, and find opportunities to create growth momentum. Consider
four likely adjustments:
New
Business Structures: The way in which people view business
and new technology is changing the way business and work is conducted. For
example, a company called Loconomics is owned by the employees who are employed
there (Said,
2014). Virtual companies are sprouting, traditional companies are become flatter,
and concepts like crowdsourcing are becoming a powerful business development
tool.
Renting
Excess Capacity: Company’s naturally have slack in their
capacity or may need additional production abilities at certain times of the
year but do not have enough of a need to expand or build new facilities. For example a company called Floow2 is
developing an online site to encourage sharing of excess capacity such as vans
and rental equipment in similar geographic locations (Schiller,
2014). Small businesses are lowering costs and improving capacity for
growth without as much long term risks.
An
Entrepreneurial Class: Using new technology makes a
higher level of sharing possible. The transformation in the way people think
about selling, buying, and sharing is transforming the way in which entrepreneurial
activity occurs (Said,
2014). A person can hold a job and work part-time on a business without major
disruption in their lives. Hedged skills and abilities can be used to foster
the economic engine and encourage market adjustment.
Pressure
on Governmental Structure: There are inherent risks
associated new technology and ways of thinking about economic participation. As
new business structures and models form they will naturally put pressure on
government to adapt. There will be years of negotiation, legal and social
interaction that will occur before a happy medium is found. We can think of the
ride-share program and the need to define the business while ensuring safety (Weidner,
2014). A proper balance will need to be found to protect stakeholders and
the public while still encouraging the testing of new ideas.
The sharing economy is a collaborative one. As
people find information, market position, and share resources they are better
able to adjust to market realities and see emerging trends. Sharing is not
something that is beneficial for only people but also helps companies to buy,
sell, and lease capacity to adjust with the market without expensive outlays
that create sticky markets. More finite pieces help to create smoother economic
transitions and market efficiencies within the capitalistic perspective.
Duboise, et. al. (2014). Connected consumption: a
sharing economy takes hold. Rotman
Management.
Schultz, R. (2013). Adjacent opportunities: the
collaboration economy. Emergence: Complexity
& Organization, 15 (4).
Said, C. (May 24th, 2014). Cooperatives
give new meaning to sharing economy. SF
Southgate. Retrieved May 28th, 2014 from http://www.sfgate.com/business/article/Cooperatives-give-new-meaning-to-sharing-economy-5502879.php?cmpid=hp-hc-jobs
Schiller, B. (May 27, 2014). The Sharing Economy
Isn't Just For Consumers: Now Small Businesses Are Getting In On The Game. Fast Co Exist. Retrieved May 28th,
2014 from http://www.fastcoexist.com/3030860/the-sharing-economy-isnt-just-for-consumers-now-small-businesses-are-getting-in-on-the-game
Weidner, D. (May 23rd, 2014). The unique
risks of ‘sharing economy’ companies. Market
Watch. Retrieved May 28th, 2014 from http://www.marketwatch.com/story/the-unique-risks-of-sharing-economy-companies-2014-05-23
