The Future of Our Economy

 

 

So far, humans have gone through two employment-shifting events: The introduction of agriculture and the industrial revolution. These shifts changed how we operated as a society and how we looked at work. We are currently in the throes of another shift, the technological revolution. Thanks to our ever-heightening technological advances, our work world (and our home world) is dramatically changing. Our grandchildren’s jobs will be very different from our grandparents’ and will feature technology we can’t even imagine yet. What will that society look like? What steps can we take to ensure the new economy and society is not grossly unequal and our next generations are ready to manage the new environment?

If you look at the way the work world is moving, you can see what the future will likely look like. Automation is replacing manufacturing roles, artificial intelligence is changing existing finance roles, permanent positions are being replaced by contract and part-time work and job stability is a much rarer thing. Because of this coming reality, entrepreneurship is becoming a stronger force and of greater interest to workers. The ability to head your own company appeals to a large section of the working population. In fact, a study done by the University of Phoenix School of Business found that half of working adults either ran their own business or had aspirations of starting one and the interest levels were higher in the younger generations. It is likely that the work world and economy of the future will see more small companies making their way to the marketplace.

As we continue along this path, we need to make sure that people are still able to participate in the work world. The question then becomes: How do we create a culture in which people can pursue their entrepreneurial dreams? The solution: Introduce a universal basic income (UBI) so people have the foundation from which they can build their startup. Studies by institutions like the Mowat Centre in Toronto show UBI has the real potential to increase entrepreneurship, as it gives people the financial base necessary to pursue their dreams, and case studies done testing UBI have seen an increase in entrepreneur levels. UBI has the real potential to remake our economy and save us from a future of mass unemployment and poverty.

One definite is the fact that the work world of tomorrow (and the day after that) will feature technology that will dramatically change how the actual work is accomplished. Although we cannot fully prepare ourselves to manage this not-yet-created technology, we can ensure that the workers of tomorrow are prepared. Education will be vital, as workers will need to know both how to manage technology and how to communicate in an increasingly global world. More importantly, we need to learn how to be innovative with the new technology. This is how the successful startups will be created: By innovators seeing a new way to use technology and bringing it to the masses. Today’s youth are technologically savvy and, with the right push, they will create the innovations that will change the world again.

As 2017 draws to an end, it makes sense to look ahead and see what could be coming in our future. Technology has set us on the fast track and everything in our world is changing radically because of this. If we harness it properly, we could create a healthier economy and better world for everyone, one where we are all productive and happy members of society. Education, basic income and entrepreneurship are the steps that will lead to this bright future. Do you agree?

What The Bitcoin Boom Could Mean For You

Bitcoin is big news right now, thanks mainly to its skyrocketing value. Because of this, people who had previously been completely unaware of its importance are viewing it as an asset and considering how they can invest in its future. Although the cryptocurrency itself is of incredible value, there are other forward thinkers that are using bitcoin to bring forth new innovations, and these startups are definitely worth our attention. Join me this week as I explore the innovations that are coming to market thanks to the rise of bitcoin.

As the value of bitcoin continues to rise, more and more people are realizing its potential as an investment. That being said, many of these people want to invest in bitcoin without really knowing what they can do with the cryptocurrency. Unchained Capital saw potential in this and built a business around it. The startup offers commercial loans that use bitcoin as collateral, giving business people an opportunity to put their digital assets to good use. This service will be invaluable for entrepreneurs who may be bitcoin rich but credit poor, or those who want to keep their bitcoin but want access to its value. As bitcoin continues to rise people’s interest will grow, and startups like this that can tap into its value are setting themselves up for success.

Across the pond, British companies are introducing innovations that will be of great interest to anyone watching the rise of bitcoin. The Dragoncard, created by the London Block Exchange, allows its users to convert their cryptocurrency holdings into sterling and use it in their everyday dealings. Revolut is offering a similar service through their mobile app, allowing people to easily store and trade the cryptocurrency and transfer the value over if their digital wallet is running low on funds. This seamless transfer between physical and digital currency will prove to be a fantastic way for people to easily transition over to the new FinTech world.

Of course, cryptocurrency doesn’t necessarily mean the end of ATMs. For those who wish to use the more old-school bank machines to manage their money, there is Bitaccess. The Ottawa-based company saw the forthcoming cryptocurrency revolution and set out to create an easy way for people to gain bitcoins. By visiting a Bitaccess ATM (or BTM, a.k.a. Bitcoin Automatic Teller Machine) users can exchange physical currency for cryptocurrency, then gain access to the benefits that come from using cryptocurrency as a funding source. The first BTM was launched in Toronto in 2014 and the company now has machines worldwide, which is good news for the ever-growing bitcoin presence in the marketplace.

As technology infiltrates more and more of our lives our various systems adapt in order to work within the new structures. This is what is now happening with finance and currency. Cryptocurrency is set to change how we handle financial transactions, and this is a good thing. Startups across the globe know this and are showing us the fantastic ways we can use bitcoin. One thing we can say for sure: Exciting times are ahead for the currency world.

 

How FinTech Is Helping Businesswomen Find Funding

As society grows less and less trusting of “the man” or “big business” and seeks out alternative options as much as possible, entrepreneurs need to be more knowledgeable of their options when it comes to business funding. This is especially true for women, who were already facing an uphill battle when it comes to funding. A study done by Harvard Business School found that there is a definite gender bias at play: when pitching the exact same concept, 68% of men received funding interest versus 32% of women. Female entrepreneurs also pay higher interest rates and get offered smaller loans. The fiercest battle is being fought in developing countries, where 70% of women-led businesses face intense roadblocks when seeking financial backing. It is quite clear that business financing for women needs a new look. The good news is, if you choose (or are forced) to not rely on the typical funding route, there are systems set up to help women get financial support, thanks to FinTech.

The peer-to-peer lending marketplace is a great example of an alternative funding option that has proven successful for businesswomen. Relatively new, this industry has exploded in popularity and will only continue to grow. In fact, according to Transparency Market Research, the global peer-to-peer market will be worth almost $900 billion by 2024. Similar to crowdfunding, business owners apply to get funding from outside investors. Through platforms operated by companies like Lending Loop or LendVantage, startup owners can access the peer-to-peer lending marketplace and present themselves to potential investors. This growing peer-to-peer marketplace is excellent news for women seeking to conquer the business world in North America (and beyond).

This push to equalize the business field extends beyond the western world. There is a concerted effort to get more women in developing countries involved in entrepreneurship and giving them access to funding is a major part of this. Knowing this, the World Bank created the Women Entrepreneurs Finance Initiative (We-Fi). By providing funding to multilateral development banks (MDBs), We-Fi aims to make it easier for underfunded female entrepreneurs to access funding and get them on the road to business success. Supported by many federal governments (including Canada and the U.S.), We-Fi has the real potential to open doors for so many entrepreneurs who likely never would have received funding otherwise.

We-Fi is not the only option for women in developing countries who are aiming to conquer the business world. Peer-to-peer lending also extends to the third world and unbanked communities and this means investors wanting to aid in the development of startups working in these areas have the opportunity. Through platforms like Amartha, people around the world can invest in startups that will change the world for people that have been underserved for a long time. Amartha seeks to provide business loans to the unbanked, connecting them to investors and allowing them to build their company. Business investors looking to make a real and positive impact in the world should definitely explore this option.

The business world is stronger when women have a notable presence. In fact, multiple studies (by the Peterson Institute, MSCI, etc.) have shown that companies with women in leadership roles outperform the competition. Given this reality, aspiring businesswomen should definitely take the initiative to enter the marketplace. If you know the right avenues to take to access funding, your startup could be ready for business before you know it. The time is right for women to take their equal place in the boardroom and the marketplace and FinTech startups are the way to do this.

The Basic Impact of Basic Income and Impact Investing

 

It’s a common misnomer that we’re living in a callous, self-absorbed and ignorant society, obsessed with self-preservation and self-gratification. It’s also often theorized that technology is damaging our social lives and leading us towards a robotic society. In truth, there is a current of good running through society and modern technology is actually giving us the tools to ensure this good is spread further across the world. Contrary to isolating us, modern initiatives like impact investing and basic income will help unite us and create a truly equal society. Join us this week as we explore the good that is being done.

Interested in actually making a difference with your wallet? Social impact investing really is the best way to invest your money. By supporting causes seeking to make a positive change in the world, you can ensure you are doing good with your financial contribution…while also as earning investment rewards.

For those wishing to explore the concept, the partnership with FinTech has made it much easier to access. Check out SVX, a platform created to simplify the process of raising capital and making impact investments.

Many entrepreneurs in the finance field know the value of the partnership and are seeking ways to make the strongest impact. Earlier this month (November 9-10) they met at the Social Finance Forum to discuss the importance of impact investing and how FinTech is (positively) changing the field. The continuing presence of this event (now in its 11^th year) shows how intertwined FinTech can be with social justice.

Partnering up with impact investing is a smart move, as this is a field that is on the rise. The Global Impact Investing Network has noted its rise, with the number of entrepreneurs and investors steadily growing. This is likely because impact investing has often been positioned as investment for the 99%, a way for anyone to cultivate a portfolio despite their lower economic standing. As well, as people become more socially conscious, they want a way to ensure that their money is going to worthy causes. As the field grows its profit levels rise, which is good news for people who chose to support this movement. In fact, studies done by Cambridge Associates and the Global Impact Investing Network, McKinsey & Company and Wharton Business School all show positive internal rates of return in impact investing.

With FinTech making the investment process so much easier and convenient, it’s easier than ever to put your money where it matters.

It can be argued that basic income is simply a recipient of social impact investing, as accumulated (government/company) money is used to improve society, but it is actually much more than that. A life saver for many, basic income also feeds back to the investment market by offering the opportunity for wannabe investors to finally support worthy causes—including themselves and their business aspirations. According to a study done by the Mowat Centre in Toronto, the introduction of basic income leads to an increase in socially conscious businesses. This makes sense when you realize that so many people want to support worthy causes and want to realize their entrepreneurial dreams, but don’t necessarily have the financial base to do this.

Considering the beneficial effects of these socially conscious businesses, the concept of basic income should be a definite priority for governments.

When combined, social impact investing and basic income have the potential to finally create a fair(er) society. We now have the resources to create a new world order. Think of how amazing it would be, knowing that the playing field is not as skewed and no one is being left behind to suffer. When people aren’t in dire financial straits and now have extra income to support initiatives that are vastly improving the world, everybody wins. This should be a cause that unites us. Let’s work together to make it happen.