Natural Capitalism: Service and Flow Economy

By: Reni Rosari
Fakultas Ekonomika dan Bisnis Universitas Gadjah Mada Yogyakarta

Over the years, environmentally sustainable development has been threatened by a badly designed business systems, wasteful patterns of consumption and explosion of population growth. Natural capitalism is a possibility of the next industrial revolution. It refers to the natural resources and ecosystem services that make possible all economic activity in life. Natural capitalism recognises the critical interdependency between the production and the use of human-made capital and the maintenance.

Service and flow economy is the third principle of natural capitalism. A service and flow economy model as a new business model has shifted a business from a traditional manufacturing of selling goods to the one which delivering a flow of service. Not all companies can profit from the shift of the business model. However, the shift to service business model will allow benefits for the future sustainability of the company but also the entire economy and environment.

Key words: natural capitalism, service and flow economy, business strategy


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