Industrial Revolution played an essential role in the changing of the business world. Technological advancements keep creating a demand for the growth of many businesses worldwide, helping them adapt and shift to fit in the changing competitive market (Manish, 2015). The current business world revolves around a knowledge-based economy rather than a trade-based. Technology does affect not only the business factors but also the employees in the corporation. Recessions affect businesses in different forms and factors tied to the technical elements in the industry. Economic downturns affect both small and large companies. Economic recessions are when a company makes its decisions from past lessons (Sanz, 2021). Technology is one crucial factor that outlines and helps revive the financial market for any business. It is essential to understand that it is possible to build up the economy while considering environmental stability.
Technological advancements have revolutionized and changed how different companies operate and conduct their activities. Most leaders use technology to ensure effective operations are running through the competitive world. Technological factors that govern and impact the business world include communication resources, logistics, marketing, production techniques, and e-commerce technologies (Ferreira, Teixeira, & Rammal, 2021). The elements are essential as they affect its operations, consumers, competitors, and suppliers. Technological advancements have played a vital role in the growth of different companies worldwide. Productivity, Technology and Economic Growth
Innovation changes how a business conducts business. However, workers are esteemed by a partnership. Quite a long time ago, people were appreciated for having the option to know a specific exchange. With the Industrial Revolution, individuals saw their communication and work esteem seriously reduced as machines could perform routine assignments at a speedier, more productive speed (Manish, 2015). The business environment transformed from a trade-based to an information-based economy. In this better approach for leading business, workers were esteemed for the mind. As innovation keeps advancing, so too should organizations keep an upper hand. Business leaders must learn various ways to incorporate technology in their business strategies.
Technological advancements in economic growth
According to Josi Billingshurst, technological advancement forms the best part of the growth of an economy (Billinghurst, 2021). Some of the digital tools that entrepreneurs in business innovation use include application program interface, digital twinning, artificial intelligence, database operations, and server virtualization. Technological progress is essential to ensure development and economic growth in society. The more available advanced technology helps to ensure the improvement of the global economy. Technological advancement plays a critical role in determining economic growth (Ark , Kulpers, & Kuper, 2013). The fast pace of development can be accomplished through a significant degree of innovation.
Researchers saw that technological advancement is the primary determinant of economic advancement (Christiansen & Ulku, 2017). Yet, if the degree of innovation becomes consistent, the course of development in the organization stops. Subsequently, the innovative advancement keeps the economy moving (Ferreira, Teixeira, & Rammal, 2021). Creations and advancements have generally been answerable for fast financial development in developing nations. Economics agrees that technology is the primary growth driver in most cities, regions, and countries; technological progress will ensure efficient production of better goods and services for prosperity.
Technology plays a role to ensure that businesses remain connected to their consumers and keep up wih the trend to march the competitive orld. Indeed, the idea of technology itself, just as the individual and social capacities needed for its advancement, can be learned at a considerably more acceptable level prompting potential commitments that might affect advanced education, work creation, and financial development (Christiansen & Ulku, 2017). There are interrelationships which include economic growth, development, training, and innovation.
Before the recession, Doughnuts company was under collision due to the environmental disaster. The model was designed by co-founder Kate Raworth which helps to encompass human sustainability and human prosperity. The recovery period played an important role in rebuilding a better economy with environmental sustainability. A beginning stage of Doughnut Economics is that 21st-century financial aspects will probably be polished first and estimated later. Doughnut Economics Action Lab was established in 2019 to help and associate the arising local area crisis with the overall ideas of transforming these thoughts into effective practice.
This is a social environment that, since the worldwide pandemic, is becoming quicker than any time in recent memory (Vandenhole, 2017). One of the most excellent characteristics is that it naturally arises from different training fields, from instructors to policymakers, local area coordinators to experts. This way, DEAL is going where the energy is, at first working across five key subjects: Government and policy, Communities, places, and Cities and Places, Education and Research, Government and Policy, Business and Enterprise; however, with interest stretching out past these bunches, for example, in human expression and innovation, there’s no realizing how this may look in a year (Raworth, 2017).
The primary recovery method helped ensure that they had built a system that could support human living standards without affecting the environment. Doughnut economies play a role in providing an intuitive way to help think about the economy (Shorter & Sanz, 2020). The doughnut economy focuses on social freefall and economic development. Political and economic growth will provide a way that ensures companies are developed and factors of healthy, social, political, and good participation. (Sanz, 2021) The unsustainable impact on the environment exists outside the doughnut. The model aims to help people live under economic means without affecting the planet’s ecological needs. The safer space belongs inside the doughnut. Economies describe society’s allocation of scarce resources.
Figure 1.1 Doughnut economy
The need for New economic vision
The idea of donut financial matters resulted from the longing to make another monetary model that considers the planet and focuses on the necessities of every one of its occupants. Ms. Sanz said in the 21st century; we are seeing the demise of the natural environmental world (Sanz, 2021). The world has experienced a crisis over the 2008 financial accident, environmental calamities, and the present pandemic. These emergencies have featured worldwide disparities in power, wealth, gender, and race. Ms. Sanz states that,
“Last century’s economic models focus on supply and demand, price and the continual growth of GDP above a thriving planet. This framework is outdated for our current times and has brought us to the crises we are experiencing today.”
According to Ms. Sanz, the planet has limits, and those human beings are well connected, which calls for people to create new economic movements that will help the world that is safe for the species and human beings (Sanz, 2021; Shorter & Sanz, 2020). Doughnut economies entail social foundations on the definition of basic needs. Basic needs are defined by community networks, social equity, peace, community networks, and housing, work, education, and food.
Ms. Sanz cited numerous urban areas that have executed the regenerative monetary model in different ways: Seattle raised its lowest pay permitted by law to over $10 each hour, Medellin has made new stream parks all through the city to introduce its regular habitat once again, Amsterdam has focused on around development methodology wherein it will lessen its dependence on new natural substances by half by 2030 (Sanz, 2021). For Ms. Sanz, one instance of executing regenerative economies inside urban communities is to make enduring responsibilities and associations among financial backers and organizations.
Importance of Doughnut Economy
Over the years, the environmental and economic crises have caused a bad and good impact on the economic environment. Raworth has helped people change their perspective on who they are and what they stand for political-economic factors. A sustainable environment will ensure that economic growth supports people’s lives and daily activities. In Doughnut Economics, Kate Raworth distinguishes seven basic manners by which routine financial matters have driven us off track and sets out a guide for bringing humanity into a perfect balance that addresses the issues of all inside the method for the planet (Raworth, 2017). In transit, she deconstructs the ‘reasonable financial man’ personality and clarifies what truly makes us tick. She uncovers how a fixation on harmony has left financial experts powerless when confronting his present reality economy (Shorter & Sanz, 2020). She features the risks of overlooking the job of energy and nature’s assets – and the broad ramifications for financial development when we consider them. Also, all the while, Kate makes a new, state-of-the-art economic model that is good for the 21st century – one in which a donut-molded compass guides the way toward human progress (Raworth, 2017). Ambitious, extremist, and thoroughly contended, Doughnut Economics vows to rethink and redraw the eventual fate of financial aspects for another age.
Technological advancements in the current business world play an essential role in ensuring high participation in enabling a sustainable environment. Technological progress helps to ensure that the business world is sustainable with efforts that will provide a leading-edge because of the availability of information and other essential factors that prevent economic backlash. Doughnut economy is critical to ensure that people trade in sustainable economic growth. Employing a Doughnut economy will help avoid a significant recession in the economy. The primary purpose of the economy type is to balance the existing openness by ensuring integrity in the economic practices.
Ark , B. V., Kulpers, S. K., & Kuper, G. H. (2013). Productivity, Technology, and Economic Growth. Springer Science + Business Media, LLC. doi:10.1007/978-1-4757-3161-3
Billinghurst, J. (2021, 10 21). Events hub. Retrieved from Bonus Session – TECHNOLOGY SHOWCASE – Stories of Digital Innovation: https://web.cvent.com/hub/events/2ab19b77-3ab9-4fe6-bf48-a4afae000689/sessions/1c9dcddf-f07a-4a48-9f9c-999b1fcd308b
Christiansen, B., & Ulku, Y. (2017). Technological Integration as a Catalyst for Industrial Development and Economic Growth. London: Library of Congress Cataloging.
Ferreira, J. J., Teixeira, S. J., & Rammal, H. G. (2021). Technological Innovation and International Competitiveness for Business Growth: Challenges and Opportunities. Springer Nature.
Manish, W. (2015). Technology, Innovation, and Enterprise Transformation. Hershey: Salem State University.
Raworth, K. (2017). Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist. Vermont: Chelsea Green Publishing.
Sanz, C. (2021, 10 27). Hub events. Retrieved from Keynote Presentation – Doughnut Economics: from a radical idea into transformative action: https://web.cvent.com/hub/events/2ab19b77-3ab9-4fe6-bf48-a4afae000689/sessions/dd89b638-c953-4d41-bd00-bdfaa6046eca
Shorter, R., & Sanz, C. (2020). Systems Change Alliance. Retrieved from Doughnut Economics: from a radical idea to transformative action: https://systemschangealliance.org/doughnut-economics-from-a-radical-idea-to-transformative-action/
Vandenhole, W. (2017). Ecological Economics and Doughnut Economics.