Mirjana Perkovic, Entrepreneur, Digital Award Winner, Mentor, Board Advisor & Founder/CEO of LookStyler, a marketplace for fashion tourism.
The world is undergoing profound economic and societal changes. With the advent of rapid technological advancements and globalization, I believe the concept of transformed capitalism has emerged as a powerful tool for fostering inclusive economic growth and helping address systemic inequalities.
In 2024, I had the privilege of joining a global initiative that works with business leaders to promote a transformed capitalism that ensures equitable access to opportunities and wealth creation. I am particularly committed to promoting social equality, inclusivity and equal access to opportunities and wealth. From my perspective, to understand why transformed capitalism is key today, it’s helpful to first look back at how economic models have evolved over time.
Understanding Historical Economic Cycles
Historically, economic theories have evolved in response to societal needs and pressures. From the 16th to 18th centuries, mercantilism dominated as the prevailing economic model. Mercantilist policies prioritized restricting imports and favoring exports. This protectionist approach helped colonial empires like England and France accumulate national wealth but stifled the growth of colonial businesses.
In 1776, Adam Smith’s seminal work, The Wealth of Nations, revolutionized economic thought by challenging mercantilism. Smith introduced the concept of the “invisible hand,” advocating for free markets and minimal government intervention as the key to individual and societal prosperity. His ideas helped develop the laissez-faire capitalism that defined much of the 19th century.
Smith’s free-market ideology dominated for decades, but economic hardship and global conflicts in the early 20th century shifted the pendulum toward Keynesian economics. This approach emphasized government intervention to stabilize economies and promote growth. But economic challenges in the 1970s led to neoliberal principles gaining traction, and in more recent decades, we’ve seen a shift toward neomercantilism.
Ray Dalio, investor and founder of Bridgewater Associates, has discussed the rise and fall of economic empires and the changing world order. His central theory explains that economic cycles often follow recurring patterns throughout history. This resurgence of protectionist policies mirrors historical cycles.
Inclusive, Stakeholder-Centric Capitalism
Today, to ensure equitable access to resources and address global challenges effectively, I believe inclusive capitalism is crucial, particularly for entrepreneurship. This approach could help transform the global landscape by bridging the gap between profit and purpose.
Wealth inequality has reached unprecedented levels, with the gap between rich and poor widening across most of the global population. Inclusive capitalism seeks to address these disparities by fostering a system where prosperity benefits all stakeholders.
The emergence of stakeholder capitalism further underscores this shift. This model prioritizes the interests of all stakeholders—employees, communities and shareholders—and aligns business goals with broader societal well-being.
Lessons For Entrepreneurs
From my perspective, entrepreneurs have a unique opportunity to drive societal change by embracing the principles of transformed capitalism. You can adopt a community-first approach and promote inclusive practices to ensure your business benefits multiple stakeholders. This approach can foster sustainable growth and provide employees with a sense of purpose.
Entrepreneurs should also strive to embed a deeper purpose within their business. To do so, take a people-first approach, and view profit as more than just making money. Hire a diverse workforce, use ethical practices and work to help combat poverty through fair wages. In doing so, you can contribute to a more equitable society.
Inclusive leadership also involves considering everyone’s opinions while fostering strategic partnerships with ethical stakeholders to create a greater societal impact. I believe leaving a business legacy should reflect the profound, positive improvements entrepreneurs make in society through their companies.
Political entrepreneurship offers another avenue for impactful change. In recent years, I’ve seen a rise in “political entrepreneurship,” a fusion of business innovation and political engagement. Joseph Schumpeter, in his book Capitalism, Socialism and Democracy, introduced the concept of “creative destruction,” emphasizing the role of innovation in disrupting entrenched systems. He also identified political entrepreneurs as agents of change who could counter over-bureaucratization by responding to societal needs. Similarly, in The Politics of Innovation, Mark Zachary Taylor defined political entrepreneurs as those who reshape political systems to address neglected issues. By leveraging their innovative mindsets, entrepreneurs can consider advocating for solutions and policies that benefit society at large.
Looking Toward The Future
I believe the integration of inclusive and stakeholder-centric models will redefine economic and political landscapes. Entrepreneurs, as agents of change, will play a crucial role in driving innovation and addressing societal challenges.
The democratization of entrepreneurship promises to create spillover effects that could enhance wealth distribution and foster a more equitable society. By putting people at the forefront, we have the potential to address systemic inefficiencies while paving the way for a brighter, more inclusive future.
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