6 reasons why 'indie capitalism' is on the rise

Just as indie music proponents prefer networks to big promoters and labels, today's entrepreneurs are building value out of electronic networks.

A digital economy is emerging, in which commerce is driven by networks, and manufacturing is being enabled via 3D printing. Welcome to the era of "indie capitalism," fueled by the waves of creativity that technology is unleashing.

Photo credit: Joe McKendrick

Bruce Nussbaum calls this new state of economic opportunity "indie capitalism." In his latest book, Creative Intelligence: Harnessing the Power to Create, Connect, and Inspire, he points out that creativity and innovation are playing leading roles in business and job creation these days. "'Indie' reflects an economy that is independent of the prevailing orthodoxies of economic theory and big business. It shares many of the distributive and social structures of the independent music scene, which shuns big promoters and labels."

Nussbaum six reasons why indie capitalism is on the rise, and "big business" is passe:

1. Creativity is the source of economic value. "Creativity transforms what money can't buy into what money can buy," Nussbaum says.

2. Uncertainty is the state of social and economic life. This is fertile ground for "innovation, growth, new businesses and jobs."

3. The entrepreneur drives economic growth. Most job creation is fostered by entrepreneurs at startups, Nussbaum points out.

4. Capitalism is a social movement. Commerce is now built on networks, social and otherwise. "Knowing the real and digital cultures of your global networks is a core requirement of managers today," Nussbaum states.

5. Social networks are the basic building blocks of the economy. "People belong to a large and growing number of real and digital communities and play a vast number of roles: consumers, investors, designers, co-creators, makers, thinkers, and collaborators."

6. Creative destruction is key to innovation-led economic growth. Just as uncertainty creates new kinds of opportunities (see point #2), the rise and fall of companies is an inevitable part of "an economy based on creativity."

This post was originally published on Smartplanet.com