A new study by Crowd Companies and Vision Critical has found that the collaborative economy is becoming an increasingly important sector for consumers and is set to grow, with 23 million sharers already estimated in the UK.
In the first large-scale study, more than 90,000 people were asked about their participation in the collaborative economy in the UK, US and Canada.
The collaborative economy, also known as the sharing economy, involves consumers sharing goods and services. For example through selling pre-owned items, car sharing, swapping homes and even borrowing money from each other.
The internet and social media has made this economy much more prevalent with easily accessible sharing sites and is thought to be one of the reasons for the large amounts of consumers.
Funding Circle is a peer-to-peer lending online marketplace. Individuals and organisations can lend directly to UK businesses. The aim is to allow businesses to access finance and to help people get a good return.
A spokesperson for Funding Circle said, “Funding Circle is trebling year on year. Our active investor base of 30,000 people has lent £290m to over 5,000 small businesses since launch in 2010.
“On the investor side, the average net return is 6.1% after fees and bad debt, making it an attractive investment. Investors are able to diversify their risk and spread their lending across hundreds of businesses, lending as little as £20 to each one.
“Foundation Capital recently predicted that marketplace lending could become worth $1 trillion by 2025.”
The report found three different groups of people involved in this new marketplace: ‘non-sharers’, who don’t engage but many intend to in next 12 months; ‘re-sharers’ who buy or sell pre-owned goods using well established services such as eBay; and ‘neo-sharers’ who already use emergent sharing services such as Etsy, Talkrabbit and Kickstarter.
Although sharing within society is of course not a new concept, it has become more widespread. The report describes three main reasons for this, one of which are “societal drivers” such as public concern about environmental sustainability and the factors that lead them to take part in the sharing economy.
Some say ‘generation Y’ has a larger sense of personal responsibility and recent surveys have also shown a move towards companies who are more sustainable.
Other factors include “economic drivers” due to the rising costs of production, difficulty gaining finance and interest in new sources of income.
“Technological drivers” lead the way with the sharing economy with mobile devices, apps, social media facilitating and encouraging collaborative consumption.
As consumers become aware of this ever-growing marketplace companies need to start thinking of ways to get involved with this new economy.
In a recent Blue & Green Tomorrow article, author Anna Simpson spoke about what customers really want. She suggested brands need to respond to customers with integrity and by finding out what is really important to them, rather than the old “take, make, dispose” model.
Photo: Carlos Maya via Flickr
Like our Facebook Page
Strange Ways the Sporting World Impacts the Environment
The Future of Cryptocurrency is Eco-Friendlier than the Present
Why Bill Gates Is Wrong on the Climate Impact of Bitcoin
Everything You Need to Know to Create an Eco-Friendly Nursery
4 Environmental Benefits of Using A Buckwheat Pillow
Eco-Friendly Ways to Dispose of The Office Furniture!
7 Huge Advantages of Using Solar Power at Home
5 Important Changes to Become An Eco-Friendly Nicotine User
4 Great Ways to be a Committed Eco-Tourist While Flying
7 Basic Types of Forex Charts Ethical Investors Must Understand
How to Make Your Ecommerce Business More Eco-Friendly?
How Can Social Media Help In Promoting Sustainable Lifestyle?
Luxury Development for The Ultra-Rich Causing Climate Change Conundrum in Barbuda
How Does Bitcoin Mining Work and is it Eco-Friendly?
Is Gen Z Ahead of Millennials in Terms of Eco-Investing?
Four Reasons Why Buying Used Cars Is the Way to Go Green
There is no Planet B: The Growing Importance of ESG
Wonderful Environmental Monitoring Tips to Keep Indoor Air Clean
The Tremendous Benefits of Investing in Energy-Efficient Windows
4 Morning Productivity Tips for Green Entrepreneurs that Are Night Owls
- Features10 months ago
Eco-Friendly Interior Design Is Easier Than You Might Think
- Features7 months ago
Eco-Friendly Hacks To Create A Durable Shop For Your Home
- Features8 months ago
5 Simple Ways To Create A Greener And Healthier Home
- Environment11 months ago
The Benefits Of Sustainable Agriculture For Farmers