5
The Phoenix Economy
The Phoenix Economy, subtitled 50 Pioneers in the Business of Social Innovation, is the first Volans market intelligence report. It reveals how leading entrepreneurs, investors and businesses are thinking as they develop and scale market solutions to a broad array of economic, social, environmental and governance challenges. The report draws on new surveys of experts and entrepreneurs to identify trends and examples of how respondents are dealing with the current economic discontinuity, and— uniquely—spotlights 50 pioneers driving the development of a new, more equitable and more sustainable Phoenix Economy. Key findings include: —The economic crisis has shaken confidence in old priorities, mindsets, incentives and investments, which are seen as increasingly bankrupt. This has helped to create growing public and political appetite for an alternative paradigm, driven by a very different set of sustainable values, priorities and targets. To date, however, most initiatives have been driven by short-term panic rather than by any clear-sighted, long-term vision of how our economic priorities must evolve.
—Entrepreneurs, like all businesses, face increasingly tough financial challenges, but there is evidence that this is helping drive necessary adaption. Many of our survey respondents anticipate new funding flowing into key sustainability ventures from a variety of sources, including ‘green new deal’ investment programs launched by governments. But these same entrepreneurs must now also develop the political ‘voice’ and presence to ensure their views and proposed solutions carry weight and build the necessary momentum to achieve scale and impact. —Strikingly, in spite of the anticipated growth in markets for social and environmental solutions, timely, reliable and affordable market research is still generally lacking, particularly in emerging economies, leaving many entrepreneurs ill-served when it comes to building their business case. The report concludes with a ‘Phoenix Agenda’ for enabling a paradigm shift, which sets out how governments, investors, businesses and business schools can best support new market pioneers in achieving the scale essential for more sustainable markets—and more equitable societies.
—Any market transformation must be based on scalable solutions that bridge the micromacro divide. This will require entrepreneurial successes at five key stages of business and market development: (1) breakthrough insight; (2) experimentation; (3) enterprise development; (4) creation of alliances and replication of success, and ultimately (5), mass market infiltration, involving economic and institutional transformations.
“We must be more creative and innovative in a time of crisis, and also be more efficient and effective.” Albina Ruiz Ríos Ciudad Saludable