Where to Create New Wealth

The world passes a time of a crisis that some experts describe as historic. The global financial system has been shaken to the uttermost. Many people have lost a fortune. The German self-made man and billionaire Merck has committed suicide. Nothing will be the same as before. The world could become a witness of dramatically chances in economic and political power.

Creative destruction

The original Austrian economist Joseph Schumpeter has launched the theory of a creative destruction. Schumpeter was minister of finance in Austria after the First World War and he taught later as a professor in the United States. He described the capitalist system as a system of creative destruction. Existing companies get destroyed and shattered in ruins.

The disappearance of the system of American investment banks and the struggle of the car companies to survive is the actual example. The creative destruction paves the way of innovative entrepreneurs and upcoming technologies. We could see new, fast growing companies arising in the near future. Otherwise: car builders that survive the crisis could be reshaped thoroughly within a few years.

We should not be surprised if the rising stars are already born and at work, but they might be still sitting in the cradle of the economic world.

Finding and exploiting new business opportunities

What kind of issues could offer new opportunities for entrepreneurship and employment? An analysis of the actual key problems could help answering this question:

Although the commodity prices have decreased dramatically the world will suffer scarcity of energy and raw material. Investments in oil exploration and drilling have been halted because of the falling oil prices. A probable effect will be a backlash within a few years and cause the next oil price shock. All the fossil energy resources are anyway limited and the world demand increasing. Thus companies in the field of renewable energy could become the stars of tomorrow. One day, we will see a multi-billion heavy clean tech company that replaces the role of General Electrics or BP.

All the technologies that help to produce items that use only a fraction of the raw material and energy will flourish. Why should a car weigh more than a metric ton or one and a half metric ton and swallow masses of fuel, while the same could be done with three times less on weight and ten times less on fuel? Innovators have already designed such models but the car industry has them left out and it produced heavy SUV’s instead.

Another issue is the aging of the population. The baby boomers arrive the pension age and they benefit of advanced pension insurances. The developed western countries never have seen as many grey millionaires as before. Many middle class employees have managed to save several hundred thousand Dollars, Euros or Swiss Francs. The graying population dispose of enormous purchase power. Services in the field of spa, wellness, traveling will find good customers there. The aging population needs products that assist them, e.g. optic and acoustic aids. Health services, home care services, residents for aged may expect a promising future.

These are only a few examples. Other interesting issues could be waste management or water. The world cannot afford longer to deposit or burn the consumer goods. All the raw materials need to get recycled and used a new. Billions of people still suffer of a lack of pure water supply and water gets scarce. Thus new solutions and innovative creations will curb the coming boom. More about how to make money can be read and discussed at Make Money Tip.

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