Digital sharing models are not just growing in size but are also expanding into new geographical locations - even into poorer economies! One may ask: Are they likely to prosper there too? The short answer is Yes!
I came across a ‘Digital Sharing Economy report’ from Dalberg, an advisory firm focused on global development issues, that illustrates why these models are likely to flourish in emerging markets. I like the simple answer:
“Because the heart of the model, sharing via technology, converts these markets’ liabilities – scarce assets and abundant labor – into opportunities.”
It’s no secret that digital sharing is creating new markets and job opportunities and improving economies.
In the report, five criteria were used to come up with a digital readiness score:
- digital connectivity,
- digital payment usage and
- regulations supporting entrepreneurial activity.
Although wealthier countries tend to be more advanced when it comes to digital sharing, findings show promising efforts in certain developing countries despite barriers such as low literacy rates, lack of social trust and difficult environment for entrepreneurship.
Trust remains a key factor to make digital sharing effective Tweet
Nevertheless, trust remains a key factor to make digital sharing effective.
Cover Image, Sharing | Joren De Groof