The economics of enough

Economics was founded on scarcity. It was the starting assumption. Consider then that the two primal drivers of financial markets are fear and greed.

So, try as behaviouralists might to justify economic decisions rationally, financial markets don't move on rational grounds, especially when there is volatility. They feed on energy from the lower chakras.

This is an opportunity for those wanting to play business in a different way. How so, you ask? In simple terms, financial markets are dominated by the stock market. What is a stock market? It is a primary market for the initial capital (equity) raising of public listed business enterprises and it also serves as a secondary market for trading of shares after they have passed through that initial listing phase. You buy/sell parcels of equity ownership in public listed businesses.

The economic forces I described above underpin buyer (and seller) behaviour. If the backdrop is scarcity then the driver is profit maximisation. Large public listed companies don't exist to make an adequate economic return – they exist to MAXIMISE their economic return. And this distinction is important.

So, where is the opportunity for the conscious entrepreneur? Private business enterprises have a choice whether they (a) pursue the goal of profit maximisation, and (b) they aren't in the business of selling parcels of equity so the forces prevalent in the stock market don't necessarily apply.

How does this translate in practical terms?

The dominant stakeholder in the stock exchange model is the shareholder. The world largely revolves around his/her investment. The biggest class of shareholder are institutional investors in the guise of superannuation or pension fund managers. They invest such massive amounts of money that public companies pander to their needs. Private companies, as the name suggests, are often owned by the proprietor. You only have to look at how they manage their business during a recession. Private companies don't lay off staff as ruthlessly as their public company counterparts. They don't necessarily strive for maximising their company's returns.

Back to financial markets and entrepreneurship – the two drivers of financial markets – fear and greed – may be depicted in your second and third chakras respectively. When you run your life, make your decisions and try to create from this place, life is a perpetual struggle. Money, clients and prosperity comes and goes.

Now, don't get me wrong, many people successfully operate from the seat of the will and have no inclination to any different. The patriarchy operates from this power centre. Power, lack, scarcity, control, fear, ignorance – they all exist here. If that's your bag then, hey, I'm not a missionary. I'm not here to convert you.

HOWEVER, there is a growing restlessness with those who do want change, to whom the status quo doesn't serve, playing the corporate games doesn't appeal any more.

This growth curve is as bona fide as any business lifecycle or economic growth cycle. Some people, the ones who are consciously awakening, want to experience a different reality. They want to create or participate in the creation of a different reality – a new economic model.

What is this new economic model?

One of the pioneers in this new paradigm is Charles Eisenstein. He wrote Sacred Economics and more recently, The Ascent of Man. His work features on a cutting edge blog called Reality Sandwich.

Here's a link to a profoundly poignant short video that describes his work.

Eisenstein suggests that what our modern economy lacks is purpose, meaning and connection. He variously refers to his work as sacred economics, love economy and gift economy. The fundamental driver in this new economic reality is inter-connection with each other, nature, animals and the planet. It is somewhat perverse that mobile technology breaks down global boundaries and makes it possible for us to be connected 24/7 anywhere in the world and yet, never before have we lacked a sense of community as we do today.

Watch the video and explore his works. If this is all new and you are open to it then you'll find much of what I share here to be quite a revelation ... at least that is my intention.

Dennis Roberts helps small business owner/operators start, run and grow their business from conception to exit. He is available for strategic advice, business planning, one-on-one coaching/mentoring, advisory board, interim management and facilitation.