2016 has been a year of great change so far, and no sector has been left untouched. From world economies to start-up successes, growth, change, and innovation across the board have been massive.
We take a look at four main areas of impact and discuss the changes that have been seen in these sectors.
Globalization: An Uncertain Future
With the Brexit vote swinging to ‘leave’, the UK’s economic future as a non-EU member is now under debate, and great care must be taken to ensure that the economic policies put in place don’t alienate the UK from the single market.
A similar case in point is the TPP – the Trans-Pacific Partnership, an agreement spanning the Pacific Ocean, that is heavily under fire from all involved.
While we may not know the outcomes of these economic decisions immediately, it’s worth bearing them in mind when planning to scale your business globally, or working across these borders.
Our simplified breakdown:
Growth in the Gig Economy and Uncertain Numbers
Workers in the gig economy are often misrepresented due to the informal nature of their business. However, projections and estimations that have been put in place from various surveys show us that there has been a massive growth in this arena, not just in 2016, but over the last 13 years.
Ensuring that you know your gig worker and maintain compliant and transparent management processes is absolutely key to keeping this sector involved in your business.
Technology: Disruption, Innovation, and Growth
With the rise of gig economy models comes an influx of technological innovation and disruption. While this is only a correlation, we expect to see more innovation as the gig economy grows.
With technology like Uber and Snapchat steaming ahead of downloads and 90% of mobile internet usage in the US on apps, we see a society in which apps, tech, and innovation aren’t just accepted – they’re expected.
With the release of Pokémon GO, the change in society was finally visible, with social, online, and business interactions all following the leader.
Compliance in an Evolving Society
The rapid rise and rise of apps, games, facilities and search tools allows people to buy services, sell services, interact, and find what they’re looking for more and more easily. The implications for this kind of freedom are spectacular for those using the service – but only until more rigid country guidelines are enforced. At this point, businesses and individuals suffer due to non-compliance.
A perfect example of this is the struggle that Airbnb has had in San Francisco with property rental laws and regulations.
The new rules demand that Airbnb and sites like it only publish listings that include an official registration number that shows the property is officially approved by the city as a short-term rental. Sites that don’t comply could face fines of up to $1,000 daily for each listing in violation.
This means that the processes surrounding a simple tool that works efficiently have become incredibly restrictive. This is a trend that may or may not follow in other start-up and innovative areas, and knowing how to navigate and comply with these regulations and restrictions is absolutely critical to a successful business model.
The solution moving forward
If you are considering going global or using the extremely helpful and flexible technologies at your disposal, stay grounded and well-informed on the implications of your plan, and the solutions on offer.
CXC Global can assist you in understanding, planning, and executing a business plan in a foreign territory, keeping your compliance processes, supply chain management, and gig economy engagements legal and above-board.
Words by Alison Krumm