As an entrepreneur myself, I believe businesses have an unhealthy obsession with growth. Growth has taken center stage at most organizations since the mid-20th century, and the narrative we are often fed is that the global economy needs to keep growing. We are told that growth and prosperity go hand in hand; that without growth, living standards and employment levels will fall; that we should not slow down.
In the world of retail, this is often used as justification for bombarding consumers with new products. Lured in by the big companies—which dominate the market because they are convenient and easily accessible—people are encouraged to buy, buy, buy with constant offers and recommendations, even if they don’t need to. And today, it’s never been easier to buy, it’s just the click of a button.
But what’s worrying isn’t the prospect of our economies slowing down. It’s what this constant growth is doing to people and the planet. Workers are burning out, and the planet’s already scarce resources are being eaten up. What’s more, for consumers, being offered too much choice can become paralyzing, making the decision-making process more stressful than it needs to be. Meanwhile, the things that should be important, such as our well-being and happiness, are often sidelined to produce more products and drive profits. The result: lining the pockets of the already very rich.
I used to work in corporate beauty as head of marketing, but over time I increasingly questioned whether my role was worthwhile to society. My job was to create more sales; to shift products and create more products to sell. I was told that more products meant more growth, which meant a more successful company. But over time, I began to doubt if it made sense to sell 50 different shampoos for different hair types, and came to the conclusion that it was time to move on.
Today, we typically define the success of a company by how much they grow. But what about a company’s future readiness? What about a company’s sustainability? What about a company’s contributions to society?
Alternative business models
It is time to look beyond growth. It is time to build companies that have a purpose. But how is it possible to create a company, attract investment, and enjoy success when purpose is prioritized over growth?
I believe the answer is to create business models that do not rely on overconsumption—and this is the responsibility of entrepreneurs.
There are already great examples of companies that have successfully adopted an anti-growth strategy. Outdoor clothing brand Patagonia grew a loyal customer base by putting its environmental and social responsibilities into action with used-clothing stores and free repairs. And last year, Patagonia’s founder Yvon Chouinard gave away the company to a charitable trust fighting against the climate crisis.
Department store Selfridges recently announced a commitment for 45% of its transactions to be circular by 2030.
And in the world of electronics, Fairphone builds smartphones that are repairable and built for longevity, rather than the planned obsolescence adopted by similar companies.
The benefits of a long-term perspective
When implementing an approach that isn’t only focused on growth, it is essential to build with a long-term plan—a clear idea for how you will retain relationships with your customers for a long time. Disruption simply for the sake of disruption doesn’t add much value to the world.
Having this long-term perspective is also appealing to potential investors. While on the face of it, it may appear quite shocking to say, for example, “I’m not going to sell any products that people don’t need”—as I do at my organization. It does get people’s attention. And by building this into a long-term plan, you can offer investors a more appealing package.
Today, many investors also believe that the way the world operates is not sustainable and want to invest in companies that offer solutions. As customers demand change, many investors understand the value of meeting these demands. What’s more, investors understand that purpose-driven companies with long-term perspectives are able to attract and retain top talent.
Gen Z and the future of business
The task of putting the brakes on excessive consumerism can feel insurmountable. But, as customer education and awareness increases, customer demands are changing—especially among young people.
The way I now define success is being able to appeal to younger generations with the purpose behind my businesses. Despite Gen Z workers and customers often being labeled as unambitious, experience with them has been completely the opposite. Today, young people reject the idea that growth-at-all-costs is the only way and want to change things for the better.
However, we cannot leave the responsibility of changing things to future generations. It is the people who currently hold power who have the financial stability, and responsibility, to start an anti-growth movement.
As a business owner, I believe we need to start a movement that discourages customers from buying products for the sake of buying products. We need people who understand that the company you buy from makes a difference, the number of things you buy makes a difference, your consumption habits make a difference—and we don’t have a moment to waste.
Pinar Akiskalioglu is the founder of TAKK, an ethical beauty-care business that fights plastics in landfill, beauty hype, and excessive consumerism.
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