DECENTRALIZATION IS SHIFTING THE GLOBAL ECONOMY

It’s easy to identify some recent shifts toward decentralization, especially on a global stage. After all, in the USA, the call for “America first” policies, which cuts spending on international cooperation in favor of domestic investment, resonates with voters. And yes, the Biden Administration is pursuing an “America first,” agenda, even if it doesn’t use that specific term. For instance, in the opening months of the Biden presidency, the CHIPS for America Act speeded through congress. This act invests $52 billion in US microchip manufacturing in the hope that America will become less reliant on overseas semiconductors. In Britain, proponents of Brexit won their referendum partially on the promise to spend money domestically instead of sending it to the European Union’s centralized economy. But other shifts are less obvious and less politicized. For instance, in 2021, cryptocurrency’s market value hit $2 trillion for the first time. Many may not realize that cryptocurrency is a form of decentralization. But as Investopedia states, “A cryptocurrency is a form of digital asset based on a network that is distributed across a large number of computers. This decentralized structure allows them to exist outside the control of governments and central authorities.”

So with decentralization shifting the global economy, in sometimes hard to recognize ways, how can entrepreneurs come out on top? Here’s how:

Use Emerging Technology to Its Fullest Extent

I don’t know your industry. But I can guarantee that technology has decentralized it and is going to decentralize it further. Just look at the internet. In the 1990s, it was perceived as a place solely for nerds. In 1995, while this view was still predominant, Jeff Bezos opened Amazon as “Earth’s Biggest Bookstore.” Thanks to his ability to become established in this decentralized technology long before anyone else, Amazon is now one of the world’s most successful companies, and Bezos is now decentralizing governmental control of space.

As Bezos’s story shows, you don’t need to be creating decentralized technology to take advantage of it. And you shouldn’t get caught up with the current perception of that technology. Bezos didn’t create the internet. He merely exploited it and waited for the rest of the world to catch up. He didn’t care if nerds were the only people online. He knew the direction the technology was headed in and its ability to disrupt the bricks and mortar books industry.

Never Mistake Decentralization for Disconnection

Decentralized economies are not disconnected economies. For example, the UK’s exports to the EU are recovering, even with Brexit now in full effect. Decentralization leads to changing regulations and demand. But in many instances, this does not cut off two economies from one another. It doesn’t create a situation like North Korea/South Korea. An entrepreneur needs to look for the opportunities that emerge when two economies decide to decentralize from one another. The decentralization of economies will naturally create demand in some areas. It’s up to a smart entrepreneur to detect these demands and take advantage of them.

Use a Decentralized Workforce to Find New Markets

Coronavirus has changed the way we all go about our daily lives. Sadly, this means that talented people all over the world are struggling to find work. These people deserve to find new opportunities that don't put them in danger. And that’s where a decentralized workforce structure comes in.

Thanks to decentralization, having a presence in any emerging market is easier than ever. And that means literally any emerging market. You could detect an opportunity in a growing city in one of the BRICS nations and begin the process of recruiting an employee in record time, thanks to online hiring platforms like Upwork or Fiver. Of course, there is a catch. While it’s theoretically possible to hire someone in a small town to sell a product, the technology is hardly streamlined. But it’s getting easier. For instance, Taskrabbit, the app where you can hire people to perform dozens of jobs, has expanded from the USA to the UK, Canada and several EU nations.

And of course, thanks to the interconnectedness of the world, you can market your product to almost the entire world, no matter where you are. Since the pandemic changed our working lives, many of us have become remote workers. In essence, that makes these people decentralized workers. So why not take full advantage of this decentralization and use it to target new markets? If, nowadays, the office can be anywhere, then so can the client.

This shows how decentralized workforces can lead to opportunities. Let’s say that hypothetically, you want to start selling your product in Germany. You can begin the process with your local team members, using online marketing. If there’s an interest in your product, then you can test the waters by hiring local workers via remote work apps. If it’s successful, then you can begin the process of making permanent hires. This is a decentralized approach to business expansion. You don’t need to begin by opening an office and waiting for the opportunities to come to you. Now you can identify the opportunities first, see if they’re achievable and then form a more permanent presence in your new market.

When is the Best Time to Take Advantage of Decentralized Opportunities?

Everyone is aware that the coronavirus pandemic has in some ways made it difficult to conduct new business, especially internationally. But the end of the pandemic is a certainty, even if no one knows when that will be. And the right entrepreneur can take advantage of opportunities right now. Travel is restricted in many countries. But as the last point highlighted, decentralized workforces are an option. As Jeff Bezos’s story shows, there are sometimes huge rewards that come from capitalizing on an opportunity before anyone else. Many entrepreneurs are biding their time and waiting for the pandemic to end. If you gain a foothold before them, then that could make all the difference.

— Omari Ross