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FREE ASSOCIATIONS AS A NEW BUSINESS FORM IN UKRAINE

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News of the business school

Sharing economy may well become a founding approach to doing business in Ukraine due to the volunteering experience, self-organization, and horizontal ties.
Petro Krychun, IM-Kyiv professor of finance, CFO of an agro trading group, president of the Ukrainian Federation of Professional Accountants and Auditors, and founder of the Center of Tax Consultations shared his vision of the sharing economy in Ukraine.
- Social-economic groups of people is a reality nowadays. Business is about people and people&rsquo;s side of the business will grow its importance.
- Volunteering in Ukraine proves the effectiveness of crowdfunding for truly important goals. Ukrainians managed to do so regardless of their dislike of &ldquo;crowd-doing&rdquo;.
- Younger generations are popularly believed to avoid asset accumulation. They prefer to pay for using them. It is the basic principle of the &ldquo;sharing economy&rdquo;. As people grow older, however, they prefer to own things.
&nbsp;- According to Man&ccedil;ur Lloyd Olson, members of large groups do not act in accordance with a common interest unless motivated by personal gain. Events in Ukraine only prove that. Our victory in the war is our personal grand gain. It is our prime goal that allows us to function as one group.
- Trust is the currency of tomorrow. Trustworthiness is an asset. Unless trusted, you cannot lead.
- Sharing economy rationale is underpinned by the idea of owning and using. If an asset is owned by a group of people, they may have to deal with the &ldquo;tragedy of commons&rdquo;. In other words, individual users, who have open access to a resource unhampered by shared social structures or formal rules that govern access and use, act independently according to their own self-interest and, contrary to the common good of all users, cause depletion of the resource through their uncoordinated action. - Elinor Ostrom, Nobel Prize winner pays special attention to the main principles of common use:
<ol>
<li>Clearly defined (clear definition of the contents of the common pool resource and effective exclusion of external un-entitled parties);</li>
<li>The appropriation and provision of common resources that are adapted to local conditions;</li>
<li>Collective-choice arrangements that allow most resource appropriators to participate in the decision-making process;</li>
<li>Effective monitoring by monitors who are part of or accountable to the appropriators;</li>
<li>A scale of graduated sanctions for resource appropriators who violate community rules;</li>
<li>Mechanisms of conflict resolution that are cheap and of easy access;</li>
<li>Self-determination of the community recognized by higher-level authorities; and</li>
<li>In the case of larger common-pool resources, organization in the form of multiple layers of nested enterprises.</li>
</ol>
- Most of us cherish the sense of belonging. If you invested in Apple and are paid 10 dollars of dividends the idea of co-owning Apple is more attractive than 10 dollars. Young people are very similar. Many do not want to own a business but are happy to invest in an important, visible, and hopefully successful project.
- In my opinion, due to economic communities, people can put their skills and interests into practice. We often do not know who may need our knowledge and skills. But if you are part of a community you learn that through other people. Now we share that feeling.
- Cumulative effect is yet another implication for communities. When people bring together various resources, they in fact multiply them. It is a kind of an option for individual entrepreneurship. The financial power of a group is mostly higher than that of an individual.
- We as a society are not very much used to cooperation and collaboration. Or so it was before the war. We are developing our cooperation skills. Children are considered to develop according to the cultural context. That&rsquo;s why our children are developing those skills together with us.
For the record of the episode visit <a href="https://www.facebook.com/mimkyiv/videos/365127602217934">the Episode</a>.&nbsp;For more information about MIM. Economic Front visit our page on<a href="https://www.facebook.com/mimkyiv/">&nbsp;Facebook</a>.&nbsp;

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