In the era of digital culture, the popularization of the sharing economy provides a more convenient economic platform for society and contemporary young people who want to start their businesses. The sharing economy can also give traditional consumers the right to temporary access to products/services. The millennial generation has become accustomed to online sharing and also has a willingness to share materials or images (John, N, 2016) However, this approach has sparked a series of controversies, with some people worried that this sharing model may lead to the collapse of traditional industries. Even worse, the sharing economy can also lead to legal and security issues. This article will explore how the sharing economy can meet the needs of modern young people who want to start a business, with special attention to the perspectives of economic pressure, consumption motivation, and sustainable consumption. Through in-depth analysis, we can better understand why the sharing economy is so popular in contemporary society compared to traditional entrepreneurship, and what positive impacts it has on the lifestyle and consumption patterns of young people. I will introduce the development theories and advantages of the sharing economy in modern times to support the argument of the article.
Sharing Economy: Meeting the Consumption Needs and Experience Desires of Contemporary Young People
The sharing economy can satisfy the overall experiential value based on consumers’ internal and external motivations, while traditional economies cannot achieve this sense of experience (Mellon, 2020), thus traditional enterprises face more intense competitive pressure The reason is that millennials are more creative and under demographic and economic pressure. Analyze the economic level of modern young people and the overall socio-economic situation by combining them with the sharing economy. The housing prices in many regions have skyrocketed in the past few decades, which is more stressful than the pressure on parents and their generation, thus far exceeding the inflation rate of young income growth. High prices can also make it difficult for young people to afford down payments and the ability to own a house. At this point, consumers will temporarily have the qualification to own this property through renting. The audience of the sharing economy happens to be the millennial generation, so the external motivation is to save money and make money. The intrinsic motivation is to obtain the required products or services at a lower cost, to meet the inner needs, and to increase the sense of experience (Mellon, 2020). For example, when consumers go out and want to find a place to stay, they believe that the cost of staying in a hotel is not only expensive but also too boring, and they have not experienced the charm of residents. At this point, consumers can experience a greater sense of authenticity by joining a shared hotel (Mellon, 2020). Therefore, from an economic and social perspective, the sharing economy can not only help contemporary people obtain a money-saving opportunity but also meet their experience mode of life. Therefore, the sharing economy can only slowly surpass the traditional entrepreneurial era.
Sustainable consumption and sharing economy
Sharing has created an economy that can provide people with a cycle, which can be seen as a sustainable consumption of goods or goods (Khan, 2019) The sharing economy can help modern young people avoid unnecessary ‘losses’. Taking me personally as an example, ‘When there are serious issues with my phone and the latest model has been released, I may choose to purchase the latest second-hand phone instead of buying a brand new one during the peak of the mobile phone economy.’ This decision can not only meet the inherent needs of consumers, that is, to obtain the required products at a lower cost, but also save money. The sharing economy platform provides consumers with flexible choices, allowing them to make decisions based on their motivations and goals. Khadn (2019) researchers discussed that if consumers believe that something has the potential to save costs, then sustained consumption has a saving effect on the parties involved. Therefore, this also means that entrepreneurs can more easily share the resources within it, without the high cost of traditional entrepreneurship, which can reduce entrepreneurial risks for beginners.
Sustainable Consumption (Extended)，2021
The trade-off between security and trust
However, some consumers believe that the sharing economy is to some extent distorting the consumption issues of modern young people, while the traditional economy will still be considered safer and more reliable. Some consumers say that cost is not always a determining factor (Mellon, 2020), and some opinions suggest that “although shared ride services such as Uber are relatively cheap and flexible, owning one’s private vehicle is still considered a more advantageous advantage in terms of safety and reliability”. Especially when women work overtime, the nighttime period may raise concerns, as women may face the risk of harassment or illegal behavior in services such as car sharing. In addition, there are records indicating that some women have been violated by illegal elements when using shared ride services, further strengthening concerns about this issue. Therefore, some people believe that entrepreneurs can rely on existing business data and experience to develop a security system, which can provide customers with a security guarantee issue.
“Car sharing with miniature automobile model and smartphone with location sign” by wuestenigel is licensed under CC BY 2.0.
The regulations and policies of the economic platform are not rigorous
In addition, some critics have pointed out that the regulations and policies currently adopted by most sharing economy platforms are in a state of ambivalence, while market transactions in traditional economies are not only monitored by the government but also directly establish a good trust for consumers (Eckhardt, 2019). When consumers encounter unavoidable problems while using a certain product or renting a car, legal measures cannot balance the rights and interests of both parties. For example, in the traditional economy, if a consumer purchases a defective TV or computer, they can rely on national consumer rights or national repair or return rights. However, in the sharing economy, when consumers encounter unexpected events that impact others, legal responsibility may become unclear, leading to consumers feeling uneasy or lacking clear direction to protect their rights and remedies. Therefore, critics believe that the sharing economy platform is far less mature than traditional economies, and entrepreneurs can establish successful enterprises in mature markets.
Facilitate the coexistence of disputes
Despite some less rigorous rules in the sharing economy, we still believe that it brings more convenience to the community. Traditional service providers may provide certain convenience facilities in many cases, but these services often come with high costs. Taking hotels as an example, in addition to paying for accommodation, there may also be other vacation expenses that need to be paid. In contrast, the prices and benefits offered by Airbnb are usually more attractive. In addition, compared to traditional hotels, Airbnb is more like a home, giving people a more comfortable feeling. This family-style experience makes people more willing to choose a sharing economy platform because it provides more attractive choices, that are both affordable and warm and comfortable. On the other hand, policies related to the sharing economy platform will to a large extent be addressed by government departments or relevant departments, as this involves future development and economic progress issues. Therefore, the sharing economy largely compensates for the flexibility and diversity that traditional economies do not possess.
Overall, the sharing economy, as a new economic model, provides a more convenient economic platform for society and young entrepreneurs. The sharing economy can combine consumers’ internal and external motivations to meet their needs. On the contrary, traditional corporate entrepreneurship continues to provide consumers most traditionally, but this approach has gradually been replaced by the sharing economy in this digital culture era. The security aspects of the sharing economy have been controversial, especially concerns of specific groups such as women. But in the future society, the importance of the sharing economy will always be regulated by the regulations and policies of the sharing economy platform to protect consumers and suppliers.
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Khan, J., & Rundle‐Thiele, S. (2019). Factors explaining shared clothes consumption in China: Individual benefit or planet concern? International Journal of Nonprofit and Voluntary Sector Marketing, 24(4). https://doi.org/10.1002/nvsm.1652
Mellon, A., & Connell, J. A. (2020). Competing With the Sharing Economy: Overcoming the Challenges Faced by “Traditional” Providers. The Journal of Applied Business and Economics, 22(12), 162-171. http://ezproxy.library.usyd.edu.au/login?url=https://www-proqu est-com.ezproxy.library.sydney.edu.au/scholarly-journals/comp eting-with-sharing-economy-overcoming/docview/2497239301/s e-2
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