Throughout the whole history, it is considered that the government is always trying to reduce its expenses and maximize its earnings. However, there was a case when local authorities were interested in increasing the specific project’s effectiveness and maintaining the utility of its services. By providing an effective management decision such as outsourcing its activities to farmers, the New York City government succeeded in maintaining its watershed, increasing farmers’ business activity, and improving the environmental conditions.
Firstly, it is important to define the business activity developed and integrated into the system to maximize its value.
- There were plenty of such examples when certain public goods were provided mainly by rural citizens with the maximum effectiveness. For instance, it is possible to provide electrification by the farmers using a particular waste composter that changes the waste into electricity. This situation is provided in the Scandinavian countries and these days demonstrates a significant efficacy.
- This may be a saving time and labor force. While providing the service, the small firms or farmers will benefit from doing less work for more money.
- The entrepreneurs can stand strictly on their interests and ignore the government’s needs. For example, farmers could say to the authorities that only 83 % of them will do the job, and the other conditions must remain the same.
On the other hand, environmental issues were also effectively resolved so that both obstacles were solved and brought the maximum efficacy to the sides of an agreement.
- During the market volatility, corporations cannot freely declare spending a large sum of money for long-term development as the company’s value will decrease immediately.
- The brightest example of ecosystem entrepreneurs is Ilon Mask, who built the Tesla company. This person created the first luxury electro-energy car with more than 400 kilometers of battery, so there will be no car pollution in the long term.
- In this case, I noticed the similarity with 9th Senge’s law: You can have your cake and eat it too – but not at once (Rupčić, 2020). Though the government wanted to reduce the costs and save the New York watershed, it was impossible to do both tasks simultaneously. However, they solved this problem by not spending so many funds on farmers’ incentives, and in this case, it helped to overcome the issue and maximize the efficiency.
Reference
Rupčić, N. (2020), “The fifth discipline: looking ahead”, The Learning Organization, 27(6), 555–566.