Whether you’ve heard of the flat white economy or not, it’s a notion and idea that has, for some years, been changing the landscape of business and development in the UK, and things could be set to shift even further.
The phrase was originally coined by Professor Douglas McWilliams in his book, The Flat White Economy: How the Digital Economy Is Transforming London and Other Cities of the Future, but what does it really mean and how much of an impact is it likely to have on the future of business?
Where does the phrase come from?
You may be able to work it out for yourself, but if not we’re here to spell it out for you anyway. The flat white economy refers to the millennial generation of young workers that are operating in sectors such as media, internet and creative business.
In terms of characteristics, they have been defined as having traits similar to what many of us consider to be ‘hipsters’. They are greener and more ethical, are less concerned with materialistic belongings and are, according to some, set to represent the future of British prosperity.
Could this be true? Is the rise of digital and its associated players going to be what will matter for business in the future?
Forecasting trends
It has been suggested that by 2025, the Flat White Economy will contribute 15.8% of GDP, which would make it the single largest sector in the whole of the UK.
While the rise in digitalisation means that this suggestion isn’t entirely implausible, it’s also important to consider the fact that forecasting digital trends so far in advance is tricky. The industry is constantly changing and adapting, so how can we possibly know what will happen in so many years’ time?
How the Flat White Economy can benefit businesses
If you look to Old Street in East London, cheaper rental spaces meant that internet-based start-ups were attracted, which in turn resulted in more coffee shops, bars and restaurants.
The spending habits of millennials, or more specifically their habits regarding saving, means that more young people are choosing to spend their money on experiences, for example brunches and nights out in trendy bars, as opposed to saving.
This is good for both the economy and businesses, as it encourages creativity and forces business owners to strive for more excellence.