The Bankwatch

Tracking the consumer evolution of financial services

The role of social in the economy

William is doing a good job at taking the discussion forward on the Social Economy. I have wavered myself on whether it is an economy or whether social is rather a new factor in the (online) economy.

FORUM Solutions Discovering the Social Economy

I tend to define the social economy a little more broadly: as that increasing part of our society’s economic decision-making that is influenced by emerging social tools. The water cooler is now global, and people can influence each other’s spending habits and brand preferences more effectively and instantly.

The Social Futures Observatory have an extensive paper on Social Lending. They make the point about the confluence of social capital with traditional economic capital. When that happens, they argue, the sum is greater than a simple economic transaction. People value their social capital, so when it is brought to bear upon economic transactions, much greater value is developed.

Written by Colin Henderson

April 6, 2008 at 16:58

Posted in Social Lending

One Response

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  1. Thanks Colin. I’m starting to refer to it as more of a social age, and that an increasing part of our consumer decision-making is being influenced by new social tools.

    At Vancity we’re starting to define the Social Economy as that part of the economy which is devoted to bettering our society and communities. Like the great work done by enterprising non-profits and social businesses (as coined by Muhammad Yunus in his new book).

    William Azaroff

    April 6, 2008 at 19:03


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