How does business work in a low to no growth environment? Prof. Dr. André Reichel talks about the challenges and opportunities for companies in a postgrowth economy
Prof. Reichel, you are working on issues of postgrowth and business for many years – what changes are we about to witness in the next 10, 20 or 50 years in the economy
Across Europe, we most likely will see receding economic growth rates in the coming decades. And although the global economy continues to grow, it does so at a significantly lower pace than in the years before the financial crisis of 2008/2009. At midpoint of the 21st century, global economic growth rates probably will be below one percent per year. That does not imply that business cannot grow in such an environment. But you will need new business models and a stronger sensitivity towards the rest of society. Regardless what you do, your business will need to become less growth-dependent and still be able to deliver a decent return. At the same time, this raises the question about the meaning and purpose of business: to increase (monetary) profits or maybe delivering better, more socially inclusive and ecologically friendly problem solutions for customers and other stakeholders.
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