BCM214 - Digital & Social Innovation

Supporting Small Business without Algorithms...

James McTaggart
Mar 20, 2024
3 min read

In today’s world, where sustainability and community support becoming increasingly important, our group's service, local. aims to explore these values, specifically addressing the empowering of small businesses and growing appeal of ethical consumption. At its core, local. is designed to strengthen local businesses by providing them with a unique digital space that allows them to stand out from larger corporations. This initiative aligns with the United Nations Sustainable Development Goal of Decent Work and Economic Growth (SDG 8), focusing on equitable economic development, job creation within communities, and economic benefits across broader society.

The development of local. is particularly timely and relevant, as the COVID-19 pandemic has highlighted small businesses' vulnerabilities while simultaneously awakening consumer interest in supporting local businesses and ethical consumption practices, which larger chains are often under fire for. Also, the introduction of digital platforms has become a lifeline for connecting consumers with local businesses, making platforms like local. not just innovative but necessary.

Unlike traditional search engines and review platforms such as Google Maps, TripAdvisor, and Yelp, local, redefines traditional dynamics by underlining community-driven insights over algorithmic recommendations and paid advertisements. This approach disrupts the conventional methods through which consumers discover dining and entertainment options and levels the playing field for small businesses in the digital domain.

The foundation of local. is solidified by studies and industry reports that underscore the economic benefits of tourism and the need for innovation within this sector. Tourism is a cruital driver of regional economic development (Meyer, D., et al. 2017) and (Gunawijaya, J., et al. 2018), and initiatives like local. can play a pivotal role in empowering communities, facilitating information sharing, and ultimately enhancing the tourism experience. Targeting the hospitality industry initially, which comprises 17% of Australia’s $30.0bn tourism market and is expected to grow exponentially (IBIS Industry Report, 2024). local. aims to enhance the tourism experience.

(IBIS Industry Report, 2024)

Looking at elements of the sharing and gig economy, local. enables community members to monetise their knowledge and community experiences through a unique points-based rewards system. This not only motivates engagement with the platform but also benefits tourists seeking authentic experiences, small businesses lacking extensive marketing budgets, and locals eager to discover new venues within their area. Highlighting the power of collaborative sharing and community engagement in enriching travel experiences and supporting local economies.

Launching local. comes with various risks and challenges, including navigating a competitive landscape and facing low adoption, ensuring data security, and adhering to data protection laws. Developing a strategic marketing approach, highlighting local.’s unique value proposition, implementing rigorous security practices, and ensuring compliance with privacy regulations are essential steps toward mitigating these risks.

To showcase the capabilities and benefits of local., our interactive class activity will focus on creating a real-time directory for Wollongong. Participants will engage with the platform by scanning a QR code and adding their favourite venues, illustrating the app’s functionality and community-driven nature. This hands-on demonstration reinforces the platform’s potential to disrupt how consumers discover and interact with local businesses and underscores its commitment to fostering sustainable economic growth whilst enhancing community agency.

Reference List

Daniel Francois MEYER, Chané de BRUYN and Natanya MEYER (2017). The Importance of Tourism in Regional Economic Development: A Time-Series Analysis. Journal of Environmental Management and Tourism, [online] 8(4), pp.784–797. <https://journals.aserspublishing.eu/jemt/article/view/1410>

Frey, S. et al., 2023. Consumers care about sustainability—and back it up with their wallets. [Online]
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[Accessed 21 03 2024].

Gunawijaya, J. and Pratiwi, A. (2018). How Local Community Could Contribute to the Tourism Development in Rural Area? KnE Social Sciences, 3(11), p.826. <https://knepublishing.com/index.php/Kne-Social/article/view/2809/6073>

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Reserve Bank of Australia, 2021. Small Business Finance and COVID-19 Outbreaks. [Online]
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[Accessed 20 03 2024].

Statista, 2021. Reasons why consumers view shopping locally as important in Australia in 2021. [Online]
Available at: https://www.statista.com/statistics/1366947/australia-reasons-why-consumers-view-shopping-locally-as-important/?ref=uow.jamesmctaggart.com
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United Nations, 2024. SDGS UN Goal 8. [Online]
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