Europe nowadays, and Greece, in particular, faces a complex economic challenge, sporting a lot of problems in everyday life. This “crisis” is the result both of structural problems, embedded in European Economies, and of a colossal lack of leadership on behalf of most Governmental bodies.
New Economic Model

For this reason, a new approach should be taken, a one that would implement a new “out-of-the-box” premises, for reinvigorate the economy as well as establish a new set of rules that would bring economic development and promote spill-over effects in various sectors of the economy.

These premises prescribe a new model of “doing” business in Europe and lay out a basic set of rules that would bring spill-over effects across all the economy.

This approach, it is something I have define it as a  New Economic Model, using the term loosely, mostly as a general tag to be used for unlocking certain business restrictions and limitations.

This new model of economics aims at bringing a new paradigm shift (in the epistemology sense) and new rules of contact and engagements that would permit to the everyday civilian to move easily from the old economic model to the proposed one.

The New Economic Model – Business Approach

In order a new economic model to be structured and implemented, various elements should be synergized, cooperate and employed.

Among them are:

  • Emphasis on human factor not only as an economic unit and as a client but as well as an involving living actor, partner, and collaborator of the economic structure and ecosystem
  • A shift from strictly economic terms to parameters such as ecology, culture, self-development,” clean” technologies, constant economic, personal development, lifelong learning, etc.
  • Breaking of the rule of the “more profit” clause in favor of the rules of sustainability, development, integration and provision/development of  more value-added services based and customized to the individual needs of the people/participants/cooperators
  • Development of social networks, providing and exchanging  more and innovative value added services
  • New Business premises taking account more the cooperative model rather than the competitive one for the formation of win-win business networks and cooperation

Synergistic Economy Illustration

Basic Premises of the Proposed New Economic Model

Even though it is difficult to describe with strict terms a New Economic Business Model envisioned here, some directions can be described, and namely, those that already today gaining some momentum.

Based on that assumption, I think that the new model of the economy discussed should be structured, based on premises such as:

  • Multiplication of virtual enterprises, serving both domestic and international needs
  • Small initial investment in hardware and internet services in order to be provided virtual spaces that would host small and medium shops and enterprises
  • Heavy usage of free services and cloud computing for everyday operation
  • Very small prize lists, permitting a free and inexpensive focus in business, semi-business, social (like blogging, communication, networking) or such, virtual-based, activities and attracting more “clients/cooperators”
  • Community-based provision of services in a model of free hardware provision or per month – small fee – payment (s) for those cannot afford the rent or buy the necessary hardware. Some community provision models, also, should be taken into account.
  • Initial personal investment of time on the basis of a part-time profession in the virtual area (side by side with ordinary jobs) for many people (especially the young ones, who are most literate with technology), and capitalization of the vast accumulated expertise in the operation of a virtual organization, projects, etc.
  • Financial schemes that provide an initial base of economic reference and viability
  • Provision of services in a digital economy as hosting, services, etc. and development of new, innovating value-added services.
  • Establishment of virtual enterprises and shops in virtual spaces leased under several schemes (payment, trial base, limited trial, etc.) in order to provide an initial momentum for financial or semi-financial activities to many people.
  • Cooperation, business, and social networking for branding and promotion services
  • A gradual shift from traditional economy to a virtual one depend on the initial exchange of virtual services and goods and the augmentation of similar trends with the main objective the spillover of the earnings from the virtual transaction to “real” economic transactions
  • A well-established set of connections with the real everyday economy (such as traditional services for Home working – delivery, distribution, bank services, groceries, etc.) For example, a home-based operation (family –  virtual SME) in a village or small town would transfer a part of the earnings in the small town grocery, post office, delivery services,  developing thus the local economy. The same scheme can be applied to a larger area as long the lines of contact are well defined and established.
  • Public demand for a clear and small regulatory framework from the European Governments, able to lift the obstacles, establish a small taxation and attract more potential “users”.
  • Broad dissemination of schemes promoting and propagating the proliferation of necessary skills and aptitudes to a larger amount of people (especially to those not very familiar with the new technologies), perhaps in the form of e-Learning, continuing education schemes, etc.
  • Supplementary requirements would be:
    • A different shift in education focusing on soft skills, initiative, decision making, etc.
    • A better legal framework for the rapid creation and operation of virtual enterprises
    • A support on the value of teleworking,  flexible working schemes, distance working, etc. and clear decisions and commitment from the companies and governments on such models, in order to guarantee the rights (legal, insurance, financial, etc.) of the participants.

Of course, these are some thoughts and scenarios for deliberation, based on today’s observations and not an exhausted description of all the parameters that may or may not form the new model of doing business, contact economic transactions and ultimately living and working in the new economic environment.

Question: Do you think, you can exploit a model such this? Do you think, a New Economic Model as that, can help the companies to cope with the today’s market demands?