The New Economy Called Sharing Economy
Exclusivity is out. Collaboration is in. Working together is the new way of doing business which brings us to the concept of sharing economy. What does sharing economy mean? As kids, we were taught early on that sharing is an essential part of being. The definition of sharing that we knew back when we were starting to learn about numbers and ABCs is no different to the idea of sharing when referring to the sharing economy.
Uber, Airbnb, Grab, ebay, Fon, HomeAway, and Elance – do any of these companies ring a bell? These are just some of the growing number of sharing-focused businesses that are shaping today’s industries and economies. Companies built on collaborative ecosystem and sharing management culture are transforming businesses and the way people deal with daily life and work situations.
The rise of social media
Admit it or not, social media has become a part of the daily lives of most people. Unlike traditional communication tools, social media offers a two-way communication stream that allows people to be proactively engaged in discussions and the decision-making process. Social media is a tool aimed at collaboration and sharing. Imagine how easy it is to order food, look for a job, shop, book trips and appointments, join organizations, and even set-up a date right at your fingertips. Years ago, we were stuck with lengthy paper processes, charged with exorbitant fees, and even traveled miles away just to do such things. And today, social media has become a fundamental element of the sharing economy as witnessed in the companies mentioned earlier. The advent of social media has changed people’s perception and attitude towards others. Since then, people have become more willing to open up about their lives to strangers as seen on a lot of vlogs and social media posts. People are more engaged and unafraid to share their opinions and recommendations. Subconsciously, these are behaviors that can very well be attributed to the idea of sharing. What started out as a simple idea of sharing information turned into something even bigger – the sharing of resources.
If you don’t evolve, you dissolve
Why do we need to understand the sharing economy? Why does it matter to us? If we are just mere consumers and not into the business and technical side of the sharing economy, then why should it matter to us? The answer is simple. Life is chemistry. Everything around us affects us. And if we don’t evolve and adapt to changes, we will get left behind and stop growing. We need to understand the basic principles of sharing economy because we are a part of it. Our contributions, no matter how small, make all the difference collectively. A deep understanding of this emerging economy can lead us to better opportunities, allow us to reach new horizons, and provide us foresights that will allow us to make strategic decisions. We can’t just always be on the receiving end all of the time. It would be an irony to benefit from an industry that capitalizes on sharing but could not receive its fair share of time, resources, and efforts from the people it caters to.
So, you want to be a part of the sharing economy?
What does it take to be a part of this emerging economy? Just like in any other business or venture, we set values and traits that help us succeed in our undertaking. The values and attributes required in a typical business are no different with the values and traits one needs in the sharing industry. Sharing-focused businesses operate on trust, transparency, accountability, cooperation, open-mindedness, and the willingness to adapt to changes, innovate, and constantly feed your mind with knowledge. Apart from these values, it’s also necessary to come up with a strategic plan for your planned shift to a sharing-centric economy. How will a sharing economy affect your existing business model? Are you well-prepared for disruptions and the transition? Have you thought about the mindset of your market? You need to consider these questions on your planned economic shift. And you need to integrate all the values mentioned earlier in answering and creating solutions for such questions.
Entrepreneurship that creates opportunities for all
The sharing economy is empowering entrepreneurs and reshaping how they do business. Entrepreneurship is evolving because of peer-to-peer marketplaces. Pooling together, sharing resources, and reducing overconsumption or unnecessary purchase of things are redefining the concept of community-building in the perspective of a sharing economy. What sets the sharing economy apart from the traditional economy is its ability to provide business opportunities for all. In a traditional set-up, only those who have enough capital to build or buy apartments or condo units can actually sell or rent out these places. Imagine having an unused room in your apartment that’s just building up dusts and cobwebs. Thanks to the sharing economy, you can now have your room easily rented.
Is it sustainable or not?
This leads us to the question on whether this kind of economy is sustainable or not. Yes and no. Like all things, the sharing economy has its own pros and cons. When it comes to sustainability, it will depend on how we treat and view it today and in the future. It could be sustainable because it creates jobs for people and reduce the unemployment rate but it’s not sustainable for governments because of loss of tax revenues. Will sharing-centered enterprises last long if the number of similar businesses rises? Will it still be sustainable socially and environmentally speaking? The answer will depend on how a business sees the opportunities in challenges. Again, it all boils down to the values mentioned earlier, especially one’s open-mindedness, and willingness to adapt to changes, innovate, and constantly feed their mind with knowledge. These are what will make the sharing economy successful and sustainable.
Companies and organizations need to give back more than what they take from the environment and the society. For a company to be net positive, it needs to outweigh all the negative impacts on society and the environment with positive impacts. Net positive is a way of transforming businesses by having them innovate their products and services in a way that helps consumers have more sustainable lifestyles and restores the environment.
Why the Need to be Net Positive?
Nothing in this world is permanent. We live in a time of profound disruptions, rapid changes and unprecedented social, economic, and environmental challenges. These factors have made significant impacts on our lifestyle and the way we view our environment. When a business or an organization fails to positively respond to these changes, adapt and adopt appropriate measures, it usually leads to failure and eventually, closure of business. This is why becoming net positive is important. Net positive aims to encourage organizations and businesses to leave a positive impact to the environment – you put more resources into the environment than you get. Is it achievable? Yes, it is.
The 12 Principles
Through the 12 principles of a positive net approach, organizations and businesses understand net positive better which in turn help them adopt this new approach more efficiently. Here are the 12 principles of a net positive approach:
Net Positive Leaders
A lot of companies are already geared towards a net positive plan. Companies like IKEA, Coca-Cola, Capgemini and Kingfisher are among the key organizations making a positive impact to the society and the environment. These companies go beyond doing less to zero harm to the environment. What they do is they set clear guidelines and common set of principles to increase their sustainable practices while innovation. The net positive principle is a great way to avoid companies from greenwashing since in going net positive, you don’t just simply label your products or services as eco-friendly. In net positive practice, you show proof that you are indeed returning more than what you get from the environment. Coca-Cola, for example, returns and restores the water it uses in its products. They’ve set a concrete goal with a definite timeline in replenishing all the water they use in making beverages.
This goes beyond just merely restoring the water they use. Coca-Cola incorporates social responsibility through launching community water projects all around the world. These projects range from protecting watersheds to improving access to potable water. Meanwhile, IKEA’s net positive strategy focuses on generating renewable energy. Energy-saving initiatives such as installation of wind turbines and solar panels on their stores and distribution hubs have helped IKEA reduce their energy use globally. Their strategy is also encouraging consumers to change their mindset regarding energy consumption.
Gearing towards a net positive impact will not only drive a restorative economy. More importantly, it will create societal and environmental values that drive sustainability and help build community resilience.
Rapid changes and profound disruptions are creating a shift in human consciousness. People are more deeply conscious now than ever before. People are leaning towards more collaborative, participative, transparent, creative, and innovative interactions and relationships with others – interactions and relationships that are meant to bring out the best in individuals and organizations, and transform communities for the better. This is what the Art of Hosting is all about.
The Art of Hosting is an approach to leadership that scales up from the personal to the systemic using personal practice, dialogue, facilitation and the co-creation of innovation to address complex challenges. The global community known as “Art of Hosting” gave its name to the facilitation technic it origin from. Today there is numerus of independent institutes practicing the Art of Hosting within and outside the global community.
Building Sustainable and Resilient Communities
Today’s communities face unprecedented challenges that affect the well-being of their constituents and the community as a whole. What the Art of Hosting does is it guides participants in building unique relationships with their community. It is through collective learning that a community or an organization finds solutions the fastest way. Through the Art of Hosting, it’s possible for people to learn together and build partnerships that help them work better. The Art of Hosting allows individuals to connect with other heads of resilience and sustainability movements, deepen such connection, and come up with plans and practices to achieve a sustainable and resilient community.
When the world’s best entrepreneurs come together and realize a shared vision that will change the world for the better, we have what we call collaborative entrepreneurship. It’s an improved version of social entrepreneurship in which instead of helping entrepreneurs individually, entrepreneurs from different places are gathered to support and engage with other entrepreneurs. The Art of Hosting encourages entrepreneurs to engage in deep and meaningful conversations with other entrepreneurs, and work together towards a common goal.
Pre-sensing, participation, contribution, and co-creation are the four-fold practices that make the Art of Hosting unique and engaging. It begins with bringing our undistracted and prepared self to any situation or event that we’re in. We need to “host” ourselves first we’re able to “host” others. We need to be open to ourselves first before we welcome the thoughts, feelings, and ideas of others around us. Being present also means being aware of our environment and the people around us. The next thing we need to do is to participate and practice conversation. And the only way to effectively do this is to speak our truth in a genuine way and listen deeply and with an open heart to the people around us. The third practice is about hosting conversations. As the host, we take responsibility for building and maintaining a realm in which people can collectively work at their best. We should be willing to start conversations that matter and ensure that we get meaningful and useful answers, learning, and insights from such conversation. Finally, we have co-creation. Here, we’re not mere audiences but key persons who positively contribute to the group. It’s more than just doing things together. It’s about sharing our knowledge and experiences with other people.
People are at their best when they engage in meaningful conversations and create deep connections with people around them. The Art of Hosting is a gateway for individuals to respond to challenges and problems in innovative, creative, unique, and effective ways. After the workshop, people get better at decision-making, their relationships towards other people improve, there is more room for innovation, and people respond better and faster to challenges and opportunities. The fact that the Art of Hosting is considered as the best dialogue tool to encourage people towards social and economic cooperation simply means that it is geared towards creating a more sustainable future for communities, businesses, and organizations. The Art of Hosting is a giant leap from existing traditional leadership practices that are more often than not considered outdated and ineffective.
Patrick Roupin is an expert in innovation, design, strategy & entrepreneurship.
Ashrefunisa Shaik is an expert in organizational transformation & sustainability.