ENTREPRENEURSHIP IN THE SHARING ECONOMY: SOCIAL BENEFITS AND DIGITAL GROWTH

Abstract

The directions of development of small and medium-sized enterprises in the framework of the exchange economy and the circular economy, as well as issues related to promising areas of entrepreneurial innovation and the growth of digital business are considered. It is shown that the key sectors for innovation are food industry, packaging, water supply and clothing production. Changes in modern business models, which are the switching of the representatives of small and medium-sized businesses to the implementation of the main postulates of the circular economy, namely, to reduce consumption and reuse of natural resources, are studied. Modern market strategies and small and medium-sized enterprises trying to implement them are analyzed. It was concluded that the creation of innovative enterprises within the sharing economy not only contributes to the improvement of the economic situation, but also creates additional social effects. It is shown that the main focus of retailers is loyalty and customer retention, rather than selling more units of the product. The strengthening of the transformation of supply chains in the areas of cooperation between trading platforms and large consumer goods firms, integration of artificial intelligence and machine learning, and integration of social networks are emphasized. It is revealed that startups and newcomers to the market place goal and influence at the centre of their brands, because the impact brands are growing much faster than others. It is shown that the values necessary for creating the image of a virtuous brand are careful knowledge, caring habits and caring imagination. It was concluded that along with increasing social responsibility and greening of business, business activity within the sharing economy has unexpectedly developed rapidly. It was emphasized that the use of the sharing economy has contributed to solving the problems of rational use of natural resources, effective employment and current problems of residents of large cities. Special attention is paid to fundamental changes in the landscape for entrepreneurs, which are manifested in the creation of effective ways of production while reducing internal costs, greater opportunities to enter the market, increased competition, the transition of power from large corporations to innovative enterprises.