Exploring Futures Images of Degrowth Business Models

Abstract

Humanity is currently facing major environmental and social crises, from planetary overshoot, climate change, and environmental degradation to growing social injustices and wealth inequalities. While the mainstream green growth discourse advocates for technological innovation and market-based solutions to decouple economic growth from its environmental impacts, post-growth discourses question the compatibility of continued economic growth with environmental and social sustainability and propose a move away from growth-based economies. The more radical of the post-growth discourses, degrowth, advocates for a planned and democratic reduction in production and consumption and an overall reorientation of the society and economy towards socio-ecological well-being. In practice, this would require a fundamental transition of our society away from consumerism and capital accumulation towards principles of sufficiency, community, and ecological sustainability. While degrowth has gained increased interest within academia and activist spheres, the discussions are largely focused on the macroeconomic implications and policies, with only a few articles examining the micro-level implications and operationalization of degrowth within business. Hence, the purpose of this thesis was to enhance our understanding of degrowth business models by exploring what they may look like if adopted in the future as well as providing insight into the drivers and barriers for implementing degrowth business models. In doing this, the thesis sought to address the main research question ‘what futures images exist of degrowth business models?’. By adopting a futures study approach and exploring different imaginary futures for degrowth business models, the thesis sought to go beyond the criticisms of the current system to explore the opinions, hopes, and fears associated with the development of degrowth business models. Utilizing a futures images approach further provided room for creativity and flexibility in imagining future degrowth business models not restricted by current socio-economic structures and trends, allowing for insights into what a utopian and desirable future for degrowth businesses may be. For the study, qualitative interviews were conducted with 13 individuals focusing on identifying drivers and barriers to the implementation of degrowth in business, investigating understandings of degrowth business models, and exploring the hopes and fears about the future development of degrowth business models. The transcribed interviews were thematically analyzed and subsequently used to conduct a horizon scanning outlining the drivers and barriers for adopting degrowth business models based on the PESTLE dimensions and to construct four futures images. The thesis finds that there are supportive trends and signals that may support the adoption of degrowth in business, such as changing social values, increased environmental concerns, and increased interest in post-growth discourses. Yet, capitalist structures, systems, and path dependencies represent significant barriers preventing the adoption of degrowth practices. Furthermore, the thesis presents two utopian and two dystopian futures images of degrowth business models. The two utopian futures images are characterized by non-business organizations in a non-monetary economy and not for-profit businesses in a post-capitalist economy. The two dystopian futures images represent futures where degrowth is corrupted within a capitalist economy or achieved as a form of degrowth dictatorship. The thesis offers contributions to the degrowth literature in several ways. Firstly, the findings demonstrate significant overlap in the descriptions of degrowth business models provided in the interviews and in the existing literature on degrowth business models, which helps validate the existing literature's conceptualizations of degrowth businesses. The thesis also offers further discussions on degrowth businesses by proposing a need to embrace temporality, aligning any company growth with socio-ecological value and limits, and proposals on reducing global trade. The thesis further identified important areas of tensions associated with the role of profit in a degrowth business, the type of economy needed for degrowth, and even in how to approach the discussion on and concept of degrowth businesses. Lastly, the thesis highlights the need for more industry- and location-specific studies on the operationalization of degrowth to provide more prescriptive findings.