When most people think of working online, we have images of the digital nomad who travels the world looking for the remotest beaches and mountains where a reliable Wi-Fi signal can still allow them to spend a couple of hours each day doing website development, freelance writing, or graphic design projects for their digital clients from around the world. As access to technology expands to developing countries, and especially into rural areas, more and more people from all different ethnic backgrounds, educational levels, and walks of life are finding ways to connect with clients and tap into the seemingly limitless potential of the sharing economy.
What is the Sharing Economy?
According to the Brookings Institution, a non-profit public policy organization, the sharing economy is “the peer-to-peer based activity of obtaining, giving, or sharing access to good and services.” The expansion of the internet to different areas of the globe, the rapid increase of the internet taking over different sectors of commerce, and our collective preference to purchase products and experiences online, has opened several unique economic opportunities for people who were previously excluded from similar economic livelihoods.
Airbnb, to name just one peer to peer exchange service, is valued at over 10 billion dollars, more than many of the small to medium sized hotel chains. Furthermore, while major hotel chains like Marriot are experiencing growth rates of under 10%, Airbnb grew at an average rate of 90% from 2013 to 2015. Some estimates find that the sharing economy, of which Airbnb is a part, is expected to grow from $14 billion in 2014 to over $335 billion in 2025.
While this might cause certain economic problems for incumbent businesses who have not found a way to take advantage of the emerging consumer preference to connect directly with providers and sellers via the internet, it certainly unlocks potential for entrepreneur-minded people around the world. While many smaller business owners and others were either entirely prevented from participating in the global economy or were left at the mercy of unjust intermediaries, the ability to connect directly with clients through online peer to peer networks is transforming the job possibilities for people in every corner of the world.
From the small farmer in rural Kentucky who has found a way to market his homegrown Portobello mushrooms to consumers via an email marketing campaign, to the Uber driver in downtown Chicago, to the previously invisible fisherman and his family on a remote island in the Caribbean who have created a TripAdvisor profile to draw vacationers to their secluded paradise, the sharing economy and access to the internet is transforming the economic livelihoods of a wide diversity of people.
Less Taxes and Regulation
Furthermore, most governments around the world are not quite sure how to regulate and/or tax these peer to peer networks of exchange. Since these exchange networks are substantially different from other businesses, they often times are able to avoid different types of taxes and fees. For example, most Airbnb renters are able to avoid paying any sort of occupancy tax laws, thus giving them yet another leg up on the competition. Though the major hotel industry has declared their intentions to fight against the competition provided by Airbnb, the expected growth figures show that peer to peer renting is here to stay.
In other parts of the world, as the expanding frontiers of the sharing economy incorporate thousands of people from developing countries, conflicts are also inevitable with embedded economic interests. In El Salvador, the traditional taxi industry is currently in full protest against the arrival of Uber, which is opening a space for younger people with vehicles to create their own employment opportunities.
The Revolution for Travel and Tourism Related Businesses
According to the World Travel and Tourism Council, the worldwide tourist industry generated 10.2% of the global GDP and created almost 300 million jobs. While this important sector of the global economy used to be monopolized by chain hotels, resorts, and multinational tour operators, peer to peer exchange networks are quickly changing that reality. One report suggests that 87% of travelers used the internet to plan their trips. Communities with tourist potential around the world, with a little bit of training and practice, should be able to tap into that online tourist market.
Even if a small hotel owner in rural Guatemala does not know how to create his or her own website or master the art of SEO optimization, chances are that they can find a way to create a Facebook business profile or set up a listing on Airbnb.
Many rural communities are diversifying their primarily agrarian subsistence economies thorough community eco-tourism initiatives that are enabled by this emerging access to the internet and the growth of peer to peer websites like Airbnb. Learning how to take advantage of social media and other online resources is an essential step towards helping these rural communities find alternative sources of income.
Today, even the remotest of communities can “brand” their community or project as a virgin, tourist paradise with the support of online graphic design companies. Design Mantic is one such company that works with helps small travel businesses around the world create travel logos through a simple to use, do-it-yourself program. They also include business cards, website design and social media cover designs. This allows rural communities with limited graphic design knowledge to reach out to potential customers, establish their brand, and connect with people searching for a once in a lifetime adventure.
While the sharing economy and access to the internet is not a panacea for all of the problems faced by people in developing countries, it is opening doors for people to expand their economic potential and connect directly with clients, customers and buyers from around the world.