Beyond economic interests: platform economy entrepreneurs seek to improve society

Digital platform-based businesses arise to a large extent from the sharing economy, characterized by the exchange of underused resources between equals, mediated by a digital platform and providing access instead of ownership. This economy has been growing alongside the increasing digitalization of society. Nevertheless, the link with these solidarity-inspired origins appears to have been weakened in the so-called 'platform capitalism' exemplified by companies such as Uber and Airbnb. A new study by the Universitat Oberta de Catalunya (UOC) has analysed the motivations and objectives underlying entrepreneurial processes in this type of initiative in Spain, whilst also shedding light on the profile of the digital social entrepreneur.

"The results show that the motivations of those promoting these initiatives go beyond the pursuit of purely financial gain and encompass other aspects associated with the lifestyle and well-being of the entrepreneur, as well as collective well-being", explained Soledad Morales, member of the Faculty of Economics and Business, Director of the Master's Degree in Sustainable Tourism and ICT, and the article's lead author.

According to the researchers, these results help reconcile the platform economy with its origins, rooted in solidarity-based and social concerns, framing well-being in a broader paradigm consisting of psychological and social factors, going beyond the economic considerations and interests contained in previous paradigms.

Furthermore, definition of these motivations can also have implications for a platform's development, as it can "subsequently condition its governance and management, as well as the rules of participation of the actors involved", note the authors in the article.

From a user-centric to an entrepreneur-centric focus

The main innovation of this study is its analysis of the behaviour of the actors implementing platform initiatives, going beyond the traditional focus on users and providers. "We focus more on the moment the platform is created than the moment when users participate and share in it, although the latter are obviously the end purpose of these initiatives", write the researchers in the article.

Their work also stresses how, to more clearly understand the creative processes underlying these initiatives, there is a need to include psychosocial and motivational factors, beyond merely economic, business or technological factors, while also demonstrating "the importance of moving from the most basic individual and collective economic drivers to those related to improving collective well-being".

Fostering a more sustainable economy

These results help pave the way to improving the design of future entrepreneurship policies. For the UOC researcher, motivations related to individual and community well-being for entrepreneurs are an issue governments should consider and boost in their digitalization and entrepreneurship policies, as it could help promote a more sustainable and inclusive development of the platform economy. "By providing support for initiatives or entrepreneurs with such pro-social attitudes, policymakers could encourage the embryonic platform economy to become a promoter of a more sustainable economy", she remarked.

Moreover, the study also puts the digital/technological component at the heart of the platform economy, as it shows how this "makes the innovative process easier and cheaper". In this regard, Soledad Morales stressed how policies fostering this aspect of the entrepreneurial spirit could have "a positive influence on and encourage the development of initiatives".

A unique database

The study was based on surveys and interviews with founders and managers of 127 initiatives. Nevertheless, over the course of their research, the researchers collected data on and characterized a total of 1,207 organizations, including both start-ups and platform cooperatives throughout Spain.

In terms of their sector of activity, 44.1% of the initiatives were "on-demand professional services", for example the Cleta cooperative, which provides courier services, or Mujeres Palante, made up of migrant women; 16.8% were tourism-related, such as Fent País. "The information generated from this study provides greater knowledge and a more detailed explanation of the heterogeneous nature of the current platform economy in Spain. Additionally, it provides a basis for designing development strategies for similar new initiatives and, therefore, for promoting digitalization processes in the Spanish economy", stated the authors.

To this end, the goal is for the database to be made available on an open access basis in the near future. "We want to share it so that others can explore further aspects that, for now, we have not yet analysed", said Soledad Morales.

Comparing platform cooperatives and start-ups

The research also identified differences between the proposals of platform cooperatives and start-ups. Stemming from this, the UOC team is putting the finishing touches to a new qualitative study to compare the value attached to sustainability in the governance of the two types of organizations. "We also want to take an in-depth look at how the COVID-19 pandemic has impacted the view and values of sustainability in these organizations and at how gender equality policies have been tackled, as we consider this to be a key aspect of the values of sustainability", concluded the researcher.

This article is one of the outcomes of the EPTUR R&D project "Procesos adaptativos e impactos de la economía de plataforma turística en España en un contexto de cambio continuo. Un análisis desde la comparativa territorial", funded by Spain's Ministry of Science and Innovation, whose principal investigator is Soledad Morales, together with fellow UOC researcher Lluís Garay.

This UOC research fosters Sustainable Development Goals 8, Decent Work and Economic Growth; 9, Industry, Innovation and Infrastructure, and 12, Responsible Consumption and Production.

Reference article

Morales-Pérez, S.; Garay-Tamajón, L. A.; Corrons-Giménez, A.; Pacheco-Bernal, C. The antecedents of entrepreneurial behaviour in the creation of platform economy initiatives: An analysis based on the decomposed theory of planned behaviour. Heliyon. 2022 Oct 14;8(10):e11078. doi: 10.1016/j.heliyon.2022.e11078. PMID: 36299520; PMCID: PMC9589190.

 

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