The Interplay Between Tinubu's Economic Policies in 2023 and Sustainable Business Model Design

The Interplay Between Tinubu's Economic Policies in 2023 and Sustainable Business Model Design

Introduction:

The economic policies proposed by President Tinubu in 2023 have sparked debates and concerns about their impact on various aspects of the Nigerian economy. One area of particular interest is the effect of these policies on Christmas spending and the sustainability of business models. This article explores the connection between Tinubu's economic policies and sustainable business model design, highlighting both the potential challenges and opportunities that arise.

Tinubu's attempt to float the naira:

One of the most controversial economic policies introduced by President Tinubu is the decision to float the naira against the dollar in the foreign exchange market. The rationale behind this move was to reduce the discrepancy between the official market and the parallel market. However, the current headline inflation rate of 28.28% against the greenback raises concerns about the effectiveness of this policy in addressing the core challenge of rising living costs, particularly inflation and food inflation. This could potentially impact Christmas spending as consumers grapple with higher prices.

Impact on small business owners:

While the focus has been on the macroeconomic effects of Tinubu's policies, it is essential to consider the impact on small business owners who rely on petroleum motor spirit (PMS) to power their businesses. The removal of fuel subsidies and the subsequent increase in fuel prices by over 152% has created an additional burden for these entrepreneurs. With transportation costs, staple food items, clothing, and other goods soaring during the festive period, small business owners may struggle to maintain profitability and meet consumer demands.

Connecting economic policies and sustainable business model design:

Amidst these challenges, sustainable business model design offers a framework to navigate the changing economic landscape. By incorporating sustainable practices into their operations, businesses can create long-term value for both themselves and society. Florian Lüdeke-Freund et al.'s book, "Sustainable Business Model Design – 45 Patterns," presents various patterns that can be applied to achieve sustainable business outcomes.

Common points between economic policies and sustainable business model design:

Both economic policies and sustainable business model design aim to address societal challenges and generate positive outcomes. While economic policies seek to stabilize the economy and control inflation, sustainable business model design promotes responsible resource management, circularity, and social inclusivity. By recognizing these common points, policymakers and business leaders can find opportunities for collaboration and synergy.

Actionable advice for businesses:

• 1. Embrace eco-design patterns: Enhancing the sustainability of business models through eco-design can help mitigate the impact of rising costs and inflation. By redesigning activities, processes, and offerings to be more resource-efficient and environmentally friendly, businesses can reduce expenses and appeal to conscious consumers.

• 2. Explore access provision patterns: Inclusive business models that target overlooked social groups can create new markets and offerings. By identifying and meeting the needs of these groups, businesses can tap into untapped demand while contributing to social and economic development.

• 3. Adopt service patterns and performance patterns: Shifting from a focus on physical products to providing functions, services, and results can foster resilience in the face of economic fluctuations. By offering value-added services and performance-based solutions, businesses can generate recurring revenue streams and build stronger customer relationships.

Conclusion:

While Tinubu's economic policies may present challenges for Christmas spending and small business owners, sustainable business model design offers a way forward. By aligning economic policies with sustainable practices, businesses can navigate the changing landscape, create value for themselves and society, and contribute to Nigeria's long-term prosperity. It is crucial for policymakers and business leaders to collaborate and leverage the common points between economic policies and sustainable business model design to foster inclusive and resilient growth.