Sevinch Baratova Understanding New Economies 1 What are New Economies?

New Economies in the Globalized World
In the 21st century, new economies have emerged as a result of globalization. Today's economy is more interconnected than ever, meaning it is vital to understand the complexities of these diverse and varied economies.
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Sevinch Baratova
Understanding New Economies
1
What are New Economies?
New economies are those that are emerging or exist on the fringes of traditional economic systems. They are formed with the objective of transcending the limitations of the existing economic systems.
2
Impact of Globalization
The rise of new economies is largely due to the interconnectivity of the global economy, facilitating the flow of goods, services, and capital across borders.
3
Traditional vs New Economies
New economies exhibit a more decentralized, flexible and diverse system than the traditional economies. They do not rely solely on physical assets but rather, build value through network effects and access to information.
Different Forms of New Economies
Sharing economy
The sharing economy creates value by leveraging underused assets or creating new markets by connecting buyers and sellers. Examples include Uber, Airbnb, and Etsy.
Cryptocurrencies
Crypto seeks to change the way we think about money, providing more privacy, security, and flexibility. Examples include Bitcoin, Ethereum, and Litecoin.
Social Economy
The social economy focuses on social and environmental objectives, usually achieved through the creation of non-profit organizations, collectives, cooperatives and other forms of social enterprise. Examples include TOMS Shoes, Goodwill Industries, and Greenpeace.
Success Stories in the New Economy
M-Pesa
M-Pesa is a mobile payments service that has revolutionized the economy in Kenya. The platform enables users to transfer money, pay bills, and purchase goods and services using their mobile phones.
Glossier
Glossier is a beauty brand that has embraced the direct-to-consumer model, creating a strong online presence through social media and influencer marketing. Valued at over a billion dollars, Glossier has quickly become a frontrunner in the beauty industry.
Universal Robots
Universal Robots introduced robotics to small and medium-sized enterprises (SMEs), opening up a new market for affordable and easy-to-use robots. Their robots are now used in a wide range of industries, from electronics to healthcare.
Challenges Faced by New Economies
1
Regulatory Challenges
New economies often struggle with regulatory compliance, as the government may not be familiar with new technologies and business models.
2
Access to Funding
New economies often face challenges when it comes to accessing funding. Traditional sources of funding may not be available, and investors may be reluctant to support new and unproven concepts.
3
Adoption and Scaling
New economies often struggle with adoption and scaling, as they may not have the necessary resources and marketing strategies to reach a broader audience.
The Future of New Economies in the Global Market
Increased Adoption
As new economies continue to demonstrate their value, we can expect to see an increase in adoption across multiple sectors worldwide.
Disruption and Innovation
New economies will continue to be a source of disruption and innovation, challenging traditional business models and creating new pathways for growth.
Regulatory Evolution
The regulatory environment will continue to evolve and adapt to new economic models, providing clarity and support for businesses and consumers alike.
Conclusion
Diverse and Shifted Economy
The new economy will continue to be a driving force in the global market, as it provides a compelling alternative to traditional economic systems. It is diverse, flexible, and capable of adapting to new challenges and opportunities.
Promising Future
The new economy has already shown remarkable growth and innovation, with new economies emerging and disrupting the status quo in various sectors. The future of this economy is incredibly promising, provided they can continue innovating and overcoming challenges efficiently.
Thank you for your attention!