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 busines and social value while minimizing the use of resources  abstract and utopian?  Here are three concrete measures for creating one: 

  • Apply the sharingeconomy 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 smallscale local industry. After the breakdown of supply chains in recent months, small, local production sites offered a way of meeting specificinnovative 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).