Entrepreneurship in the sharing economy: A review of business models and social impacts

Abstract

The emergence of the sharing economy has fundamentally transformed conventional company structures, presenting novel prospects for entrepreneurs and questioning existing conventions across diverse industries. This study offers an extensive examination of entrepreneurship within the sharing economy, delving into various company models and scrutinising its societal ramifications. The sharing economy, which involves peer-to-peer transactions mediated by internet platforms, has seen the rise of new entrepreneurial businesses. This paper explores the diverse and complex nature of sharing economy business models, encompassing various platforms such as ride-sharing, accommodation-sharing, asset-sharing, and skill-sharing. A thorough examination of each model to explore the fundamental concepts, operational processes, and crucial aspects that contribute to entrepreneurial success in this rapidly changing environment is being explored. This study examines the impact of different business models on consumer behaviour, market dynamics, and social developments. The assessment examines the good and negative outcomes, taking into account factors such as improved efficiency in resource utilization, economic empowerment of individuals, and potential difficulties linked to regulatory issues, labor rights, and market competitiveness. This paper focuses on the essential role of technology and digital platforms in promoting entrepreneurship within the sharing economy. Through an analysis of the impact of digitalization on market accessibility, trust mechanisms, and scalability, the role of technology as a driver for entrepreneurial innovation and expansion is emphasized. Additionally, it analyses the impact of regulatory frameworks on entrepreneurial activity, investigating the difficult balance between stimulating innovation and maintaining consumer protection, fair competition, and social equality. In conclusion, this research gives useful insights into the entrepreneurial environment of the sharing economy, presenting a comprehensive knowledge of diverse business models and their societal implications. By putting light on both opportunities and problems, thereby contributing to the current conversation on the role of entrepreneurship in determining the future of the sharing economy and its consequences for society at large.