Entrepreneurs turn ideas into assets This requires controlling the risks that come with establishing a business. Risks and entrepreneurialism are incompatible in that as risks increase entrepreneurialism decreases - the benefits and potential of innovation are outweighed by the risks of loss. Business activity without creating or incurring undue risk can be accomplished in the following ways.

  • Friends help friends and track the value of their help by using rollars

  • A small business can allow its customers to purchase products or services with units of account that are liquidated by providing services or other needs to the business as  payment for goods received.

  • Businesses exchange goods and services and maintain accounts consisting of debits and credits  using the national currency only if and when balances exceed a pre determined limit.

  • A business association such as the Kiwanis Club set up and manages an exchange, recording transactions for members and the broader community.

  • A Credit Union sets up an account possibly backed by a deposit of the national currency and issues debit cards which are loaded as credits are earned and debited as credits are spent.

  • Government at any level may spend credits in the form of rollars which are then used as cash by the people and businesses.

  • A group of businesses, individuals, government bodies and financial institutions can create a fund and load up debit cards which are then handed out to prospective members. As these credits are spent the person spending them has the amount loaded onto debit cards which must be handed out to potential members. This can continue till the fund is exhausted or a targeted number of new members is reached.

The key to any successful program is reducing costs, the threat of loss or the risks the system generates. One of the most difficult problems we all have is finding a supplier that does not pose a risk to us.

If we need a baby sitter where do we find one? If our vacuum breaks down where do we find parts or a repair person? Modern corporations spend millions on advertising and on monopolizing shelf space so that their products become known and can be found in a predictable way.

Rational Exchange equitizes risk by turning exposure to loss into shares.

Read: The Tragedy Of The Commons



the new economic order