Sharing Economy at the Base of the Pyramid: Societal Impact and Challenges

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By Babita Bhatt, Israr Qureshi, Dhirendra Mani Shukla, & Christopher Sutter

The sharing economy is a socio-technical system where people or organizations share assets or services with each other, either for free or for a fee. It has grown rapidly in recent years and is expected to generate billions of dollars in revenue by 2025. While for-profit sharing economy ventures are common globally (e.g., AirBnB, Lyft, Uber, among others), social entrepreneurs have also used sharing economy models to address social issues in different countries (bHive, Drishitee, Digital Green, Farmizen, Ethitrade, Moving Feast, Nonna Roma, and Pinduoduo). However, the role of sharing economy models in addressing social issues is not well understood, especially in contexts with weak institutions . Therefore, as part of a Business and Society Special Issue Call for Papers, we invite submissions seeking to shed light on the societal impacts, benefits, and potential risks of sharing economy models at the base of the pyramid. But why do we need to study sharing economy models specifically at the base of the pyramid? We provide some rationale for this.

 

Why a special focus on sharing economy at the base of the pyramid?

Source: Babita Bhatt

In the context of social entrepreneurship, the base of the pyramid (BoP) refers to the largest and poorest socio-economic group of people, who typically have limited access to resources, education, healthcare, and other basic necessities. The term refers to the marginalization of social groups rather than the development status of any region. Thus, BoP populations are found in developing as well as developed countries. For example, many African-American people in the US would fall under BoP definition.

Studying sharing economy models at the base of the pyramid is important for several reasons:

  1. Addressing poverty and inequality: Sharing economy models have the potential to provide affordable access to goods, services, and opportunities for those who are economically marginalized, thereby reducing poverty and inequality at the base of the pyramid. For example, sharing economy platforms can enable individuals to earn income by sharing their assets or skills, empowering them economically and enhancing their livelihoods.
  2. Fostering sustainable development: Sharing economy models can promote sustainability by promoting the efficient use of resources, reducing waste, and promoting the circular economy. These principles align with the United Nations’ Sustainable Development Goals (SDGs) and can contribute to sustainable development at the base of the pyramid, where resource constraints and environmental challenges are often acute.
  3. Encouraging social inclusion and empowerment: Sharing economy models can promote social inclusion and empowerment by enabling marginalized communities to access goods, services, and previously unavailable opportunities. For example, sharing economy platforms can connect underserved communities with essential services such as transportation or healthcare, enhancing their well-being and social inclusion.
  4. Fostering innovation and entrepreneurship: Sharing economy models can provide opportunities for grassroots innovation and entrepreneurship at the base of the pyramid. Local entrepreneurs and communities can leverage sharing economy platforms to create new solutions to address their own needs and challenges, thereby fostering bottom-up innovation and entrepreneurship.

 

What are the challenges of sharing economy at the base of the pyramid?

Photo: Chris Sutter

Local cultures and institutional logics (i.e., underlying beliefs and values that shape behaviour within a particular social context or institution) can influence the outcomes of sharing economy models, particularly in rural areas or urban slums where critical infrastructure is lacking. There is evidence of discrimination, exploitation, and social exclusion in the sharing economy, and marginalized communities may face challenges as they participate in sharing economy platforms. Further research is needed to understand the societal benefits and risks of sharing economy models, particularly in challenging institutional contexts. While research on social entrepreneurship and institutional challenges has mostly focused on Africa, Latin America, and Asia, pockets of extreme poverty and challenging contexts in other parts of the world can also benefit from sharing economy initiatives.

 

Call for Papers on sharing economy at the base of the pyramid

Therefore, we invite paper submissions that shed light on seek to shed light on the societal impacts, benefits, and potential risks of sharing economy models at the base of the pyramid. The deadline for submission of full paper is July 15, 2023. Papers may be conceptual, theoretical, or empirical, with a preference for empirical-based theoretical work.

Some sample themes to guide submissions include, but are not limited to:

  1. Sharing economy at the BoP and social and environmental consequences
  2. Resources and institutional environment
  3. Socio-cultural Practices and the Role of social capital
  4. Intermediation and inclusion
  5. Sharing economy at the BoP and societal challenges

 

We look forward to receiving your manuscripts.

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