Do more with less
The health, economic, social, and environmental crises we’re experiencing highlight the limits of a capitalist system founded on the unlimited use of resources. For Navi Radjou, these crises present an opportunity to change our business model.
Do you find the idea of a frugal economy – creating business and social value while minimizing the use of resources – abstract and utopian? Here are three concrete measures for creating one:
- Apply the sharing–economy model to your business. In your personal life, you’re probably using peer-to-peer online platforms to share cars or lodging. So why shouldn’t your company share its premises, its equipment, or even its experts in a similar way? Although still in their infancy in Europe, these initiatives would render under-used assets more profitable.
- Reintroduce small–scale local industry. After the breakdown of supply chains in recent months, small, local production sites offered a way of meeting specific, innovative demands rapidly.
- Boost your social impact. Increasing consumer expectations means that customers now expect businesses to have a positive impact on society, by hiring disadvantaged staff, for example, or by reusing natural resources. Such “frugality” creates value for everyone.
To go further: “The Rising Frugal Economy” by Navi Radjou (MIT Sloan Management Review, 6 August 2020).
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