The purpose of this study was defined as to explore the contribution of digitalization (the role of digital technology) in community rural development and banking with a critical look at review of Ant Financial and Alibaba`s case study which provides an overview of the FinTech-based on digital technology.
In the era of technical advancement, where everything revolves around the ``e`` world, digitalization has spread its wings over all the spheres of life.The immense use of digital devices and our growing dependency on them clearly states that digitalization is the need of the hour and has great potential to revolutionize the social-economic growth parameters thus, forming a symbiotice relationship with all inclusive growth and sustainable development.
It has become that important instrument which has simplified the functioning and processes in various areas like administration, regulation, planning and operations of the socio-economic domain by ultimately enriching the quality of life.This very feature of the digital age results in sustainable development as when the societies are digitally empowered, they are more Conscious, Connected, Compliant, Collaborative and Content towards their own growth and in return they work in tandem as responsible resources for nation`s future prospects.
Table of Contents
Title Page
Declaration by Candidate
Abstract
Acknowledgement
Dedication
List of Abbreviations
CHAPTER ONE: General Introducation
1.1 Background
1.2 Rationale
1.3. Book of objectives and questions
1.3.1 Relevance of the book
1.3.2 Book structure
1.4 Summery
CHAPTER TWO: Literature Review
2.1.Digitalization
2.1.2 Concept of Digitalization
2.2 Community Development and Digitalization
2.2.1 .Impact of Digitalization on Community Development
2.3 Concept of Rural Digital Hubs
2.3.1 Digital Hubs Focusing on Business
2.3.2 Digital Hubs with Community Focus and Combined Forms
2.4 Rural Development and Digitalization
2.4.1 Introduction
2.4.2 Usage of Digital Technology to Benefit Rural Development
2.4.3 Digital Technology in Education
2.4.4 Digital Technology in Healthcare
2.4.5 Digital Technology in Agriculture
2.4.6 Digital Technology in Banking
2.5 Fintech and Rural Development
2.5.1 Defination
2.5.2 Implementation of Financial Digital Service
CHAPTER THREE: Case Study
3.1 Introduction
3.1.2 The historical trajectory of rural finance in China
3.2 “Hollowed Villages”
3.2.1 The “Left-Behind” Children
3.3 Alibaba's Digital Financial Push
3.3.1 Alibaba’s Rural Taobao Strategy
3.4 Taobao Rural Service Centres
3.4.1 Taobao Villages
3.5 Digital Financial Services and Fintech Platforms
3.5.1 Ant Financial Serveries Group
3.6 Technology Behind the Services
3.6.1 Tencent Holdings and WeBank
CHAPTER FOUR: Discussion
4.1 Impact of rural fintech on community and banking in China
CHAPTER FIVE: Conclusion
5.1 Conclusion
References
Biography
ABSTRACT
In the era of technical advancement, where everything revolves around the "e" world, digitalization has spread its wings over all the spheres of life.The immense use of digital devices and our growing dependency on them clearly states that digitalization is the need of the hour and has great potential to revolutionize the social-economic growth parameters thus, forming a symbiotice relationship with all inclusive growth and sustainable development.It has become that important instrument which has simplified the functioning and processes in various areas like administration, regulation, planning and operations of the socio-economic domain by ultimately enriching the quality of life.This very feature of the digital age results in sustainable development as when the societies are digitally empowered, they are more Conscious, Connected, Compliant, Collaborative and Content towards their own growth and in return they work in tandem as responsible resources for nation's future prospects.The purpose of this study was defined as to explore the contribution of digitalization (the role of digital technology) in community rural development and banking with a critical look at review of Ant Financial and Alibaba's case study which provides an overview of the FinTech-based on digital technology.
Ant Financial, China's largest FinTech company in the making, is set to revolutionize the China's financial network, including payment, wealth management and loans.It focuses on the underserved markets by the major Chinese banks; the low-income individuals, especially those in the rural areas.Ant Financial has leveraged on Taobao's platform, along with Alibaba's rural Taobao Strategy, to give out loans and help traditional agricultural business to set up shops on TaoBao.Alibaba also introduced Taobao digital rural service hubs (rural service centers), where villagers can get accustomed to making purchase and paying bills online, aswell as picking up items they bought on Taobao.
Alibaba provides computers and trains villagers to serve as its representatives in the centers, which are often in convenience stores.With Fintech advancements, access to products and financial service is becoming more accessible than ever.Ensuring a level playing field for consumers that live in rural locations or regions without the structures of an urban economy is vital in achieving full financial and social inclusion.
ACKNOWLEDGEMENTS
First and foremost, I thank God.
I am highly indebted to my firend, post graduate researcher prof.Ali Hussein, Renmin University of China in Beijing,China and Contennial College ,Toronto, Canada. for his teachings which largely helped me to finish my book.
DEDICATION
This work is for:
The memory of my parents
And to both my wife and sisters, The glory of God the Almighty
LIST OF ABBREVIATIONS
Abbildung in dieser Leseprobe nicht enthalten
CHAPTER ONE : INTRODUCTION
“It is past time to put to rest the sterile debate over whether new technologies are a luxury or a necessity for the poor. The real challenge now is for all of us to work together to identify and accelerate the real benefits of technological advances. ”1
1.1 BACKGROUND
The information revolution wrought by the convergence of information and communication technologies (ICTs) has sparked a gamut of arguments concerning the role of these technologies in effecting socio-economic development. Advocates perceive that ICTs encapsulate the ability to drastically break physical boundaries, freeze distance and time differences, lower transaction costs, and thus expand markets (OECF 1996; Avgerou 1998; Mansell 1999; Chowdhury 2000; Jeffrey 2002; Molla 2005). Most interestingly, they see the new technologies as a weapon of mass poverty eradication and an emancipator of the marginalised in society through the provision of information (Caspary 2002; Krishna and Madon 2003; McNamara 2003; IDRC 2003a). On the other hand, technological pessimists label the forgoing techno-optimistic expressions as a hype (Heeks 1999a; Chapman et al. 2003). Citing factors such as the marketing of pornographic products on the internet, the perpetration of organized corporate crimes, job losses, abuse of information rights and the erosion of indigenous cultural heritage to back their claims (Obijiofor 1998), they perceive that the emergence and diffusion of ICTs would worsen the plight of the ordinary person in society (Morales-Gomez and Melesse 1998).
What then is the way forward? In any case, both sides may have a point. However, it is important to note that it is not the technology per se, but the way it is being conceptualised against the realities of different contexts that is the problem2. As Noeleen Heyzer of the UN Development Fund for women puts it, “there are tremendous opportunities if we know how to shape this technology and if we know how to intervene” (IDRC 2003a). The problem, however, lies in knowing how to shape or intervene.
On the other hand, a dualistic disparity often referred to as the digital divide is being created between countries or individuals who are capable of attracting and exploiting the opportunities inherent in ICT and those who are not3. Various layers of this dualism exist with majority of people sandwiched beneath or cut off from the ,global village". At the international level, there is a gulf between the developed or otherwise advanced countries (ADCs) and the developing countries (DCs). At the national level, the discrepancy is normally between the urban rich and the rural poor. This implies that the people living in rural communities in DCs are the most disadvantaged of this information age. Others further perceive the divide on the basis of gender, age and ethnicity4 ), meaning that there could be further denials in these communities.
Perhaps what makes the above problem more serious is that it tends to escalate the already existing socio-economic gap between the rich and the poor as the technologies have been associated elsewhere with the expansion of the wealth of nations and individuals (Castells 1998; OECD 2003).
Despite doubts in generalising this claim (Heeks 1999b; Heeks and Kenny 2002), in particular there is a need to examine how the power of ICTs is appropriately leveraged by the rural poor for their own benefit as well as contributing to the socio-economic development of their nations and the world at large. The fact is that apart from the rural poor being the most excluded of the global village enhanced by ICTs, they form a good portion of DCs" population (Harris 2002, McNamara 2003; HDR 2004). It therefore means that it may be highly impossible for these countries to make substantial gains in deploying these techno logies for economic development while sidelining the rural folks (Annam 2002).
Accordingly, some countries and development organisations have begun implementing ICT initiatives in rural areas in DCs (McNamara 2003). But these still remain experimental in nature, with the problem of sustainability as a major concern (Benjamin 2001; Arunachalam 2002; Hearn et al 2005). The positive impacts of these projects are yet to be substantiated and it is not clear where and when appropriate implementation models will emerge for replication to other parts of the developing world which are in pressing need of information for livelihoods (Benjamin 2001; McNamara 2003; Gurstein 2005). There is an alarming lack of empirical analyses of actual experiences on the local appropriation of ICTs and their contribution to poor people's economic and social livelihoods to help shape new implementation policies and strategies (Baak and Heeks 1998; Findings 2001; World Bank 2002b; Rothenberg-Aalami and Pal 2005).
1.2 RATIONALE
The study tries to assess and explore the impact of digitalization on Community Development and banking in rural areas. Considering the community development perspective, the study focused on explaining the impacts of Fintech in rural development and banking in China.Study is focused on Alibaba' s taobao villages(rural taobao service center/digital hub for business service),to where, alibaba has helped rural areas build the infrastructure of e-business, including trade, logstics, digital payment and financing, cloud computing and so on.
Community development is an often “nebulous term defined by many conceptual and practical characterizations”. (Summer, 1986: 347-371) The participation of larger and growing number of local communities engaged in community development is quite obvious in current era. The existing interest in CD has resulted from the field's proven capacity to provide proper solution to community issues and problems. (Wlazer, 2010) CD initially focused on poverty alleviation at the initial stage but however, as development thinking expanded, the focus shifted from poverty reduction to putting emphasis on social transformation. The basic and standard theory of CD clearly states “people have the right to participate in decisions that have an effect upon their wellbeing”. (Litterell, 1976: 129-136) The literatures further argue that CD happens only whenlocal people believe that their participation in decision making to initiate collective actions can bring socio-economic and environmental changes to their lives. The CD process, moreover, emphasizes on the importance of “empowerment, equality, social justice, participation and representation” in decision making process on issues affecting the lives of people in rural communities.
In the light of the aforesaid concept, any change is hardly possible until an effective mechanism is introduced to support local community to make it happen. It is the CD approach which introduced to the world the idea of facilitating the development process in order to raise peoples' living standard. In order to achieve this, five basic resources available with people at community level needs to be given attention to. These resources include “physical, financial, human, social and natural” (Scoones 2009:7) resources. The concept of livelihood refers to these as means for “gaining living”. In addition, the proper utilization of these resources, policies, institutions and organizations are needed to flourish their capabilities and support them in initiating appropriate development interventions (Scoones 2009:1-6).
Literatures argue that through community development local people are empowered to work on their own social, economical, environmental and political issues with reference to their prioritized agendas to improve quality and standard of their life. Nowdays impact of innovative technology in CD,it is contributing to the rural livelihood and has gained numerous success too.
1.3 BOOK OBJECTIVES AND QUESTIONS
The main objective of this book is to uncover the impact of digitalization in which ICT initiatives contribute to the sustainable livelihoods (SL) of rural communities in China. The book seeks to accomplish this by answering the following questions through a literature review and analyses of case study of such undertakings:
What impact has these initiatives played in rural livelihoods in rural areas in China?
1.3.1 RELEVANCE OF THE BOOK
By answering the above questions, it is hoped that this work will contribute to the body of knowledge by increasing the understanding of what is impact of ICT in rural dwellers actually in their livelihoods. It will unearth some important benefits of current ICT initiatives in this domain and help to re-orient the perceptions and actions of project sponsors, policy makers and researchers towards more holistic and sustainable approaches that empower the poor to have a better and lasting understanding and control of their lives through ICT (Ramirez and Richardson 2005). It is also hoped to create awareness for people in rural DCs to champion their own development goals by grabbing the opportunities being created by the new technologies.
1.3.3 BOOK STRUCTURE
The dissertation is structured in six major parts as follows:
Here in chapter 1, the motivations of this study and how this work can make a contribution to the body of knowledge are presented.
Chapter 2 sets the context of this paper, reviewing the concepts of digitalization and of rural development.
Chapter 3 then presents the relationship between digitalization,community and rural development. It first examines the nature of rural ICT initiatives and proceeds to set ICT in perspective with the SL framework.
In chapter 4, evidence from the field is presented the case study of Taobao Village and analysed using the Alibab' s taobao digital hubs to improve livehood of villagers 3
Chapter 5 draws lesssons from the analyses in chapter 4 to discuss impact of Fintech's implementation in rural areas.
Finnally chapter 6 draws conclusion about impact of digital technology on both community and rural development.
1.4 SUMMARY
This chapter has provided the background and objectives of the research. It showed that there is the need for more research on the analysis of the appropriation of ICTs by local communities to help shape ways in which the technology can be leveraged for the benefit of rural communities. It also outlined the questions and methodology for such analysis and concluded with a presentation on how this dissertation is structured.
CHAPTER TWO: DIGITALIZATION
2.1 Introduction
The term '' digitalization'' was first introduced in 1995 by the american computer scientist Nicholas Negroponte,Messachusetts Institute of technology(MIT), although the actual process of digitalization ,at least in the economy, began long ago.Digitalization as a term replaced informatization and computerization which had mainly been used in texts about the use of computer technologies, computers and information technologies to solve certain problems.Great opportunities of digital representation of information have led to the fact that digitalization forms integral technological environments of '' dwelling'' (ecosystems,platforms) within which the user can create for himself a friendly environment (technological, instrumental, methodical,documentary, partner,etc.) necessary for him to solve even whole class of tasks.5
Currently, the term digitlization is used in a narrow and broad sense.Digitalization in a narrow sense is understood as transformation of information into digital form, which in most case leads to cost reducation ,new opportunies etc.
2.1.2 The concept of digitalization
Digitalization reflects the adoption of digital technologies in business and society as well as the associated changes in the connectivity of individuals, organizations,and objects (Gartner 2016; Gimpel et al. 2018). While digitization covers the technical process of converting analog signals into a digital form, the manifold sociotechnical phenomena and processes of adopting and using digital technologies in broader individual, organizational, and societal contexts are commonly referred to as digitalization (Legner et al. 2017).
The key driver of digitalization are digital technologies. Due to considerable investments in technological progress, various digital technologies are on the market. Thereby, an ever- faster commoditization and time-to-market can be observed. For example, early hardwareheavy information and communication technologies such as the telephone required 75 years to reach 100 million users, whereas lightweight applications such as Instagram achieved the same coverage in little more than two years (Statista 2017). Digital technologies include both emerging technologies such as the Internet of Things (IoT) or blockchain and more established techno logies such as social media, mobile computing, advanced analytics, and cloud computing (SMAC) (Fitzgerald et al. 2014; Gartner 2017).
Loebbecke (2006) refers to digital technologies as all technologies for the creation, processing, transmission, and use of digital goods. Further, Yoo et al. (2010) argue that digital technologies differ from earlier technologies in three characteristics: re-programmability, which separates the functional logic of a device from its physical embodiment, homogenization of data, which allows for storing, transmitting, and processing digital content using the same devices and networks, and a self-referential nature yielding positive network externalities. Digital technologies can be further classified with respect to whether they involve humans actively or passively, how they treat data, whether their input and output is purely digital or can also be physical, or whether they serve infrastructural or application-oriented purposes (Berger et al. 2018). In sum, digital technologies enable platforms, autonomous products, sensor-based data collection, analytical insight generation, as well as analytical and augmented interaction.
Based on advances in digital technologies, digitalization impacts business and society. Digital technologies enable innovative business models such as the platform-based models of well-known companies including AirBnB, Uber, or Facebook, or decentral models enabled by blockchain and 3D printing (Fridgen et al. 2018; Goodwin 2015). Digitalization also changes industry structures (Gimpel et al. 2018): reduced entry barriers make technology-savvy start-ups flourish and digital giants such as Google or Apple push forward to manifold sectors. Regarding the IoT, for example, 50 billion smart devices are expected to be connected to the Internet by 2020, having an economic impact of $7 trillion (Macaulay et al. 2015; Wortmann and Flüchter 2015) . Further, the volume of available data is known to double every three years (Henke et al.
2016) , and insights-driven businesses are predicted to take away $1.2 trillion per year from less- informed competitors by 2020 (McCormick et al. 2016). Digitalization also empowers customers and impacts our private lives. Today, more people have access to cellphones than to toilets, and one in five people has an active Facebook account (Halleck 2015; UN International Telecommunication 2014). In the digital age, wowing customers is more critical - and more challenging - than before, independent from an organization's position in the value network, as customers decide themselves how to interact organizations (Hosseini et al. 2018). Likewise, employee behavior and thought patterns evolve towards a new future of work, calling for new work and collaboration models (Brynjolfsson & McAfee 2014).
Digitalization, however, is neither a new phenomenon nor will it be the final evolutionary stage of information and communication technology (Porter and Heppelmann 2014).
2.2.1 Community and rural development
Community development has been described as a conscious technique or process to solve social change problems; a process that enables communities to “collectively confront and act on their common values and problems” (Lotz, 1977, p.16). Hamilton (1992) defined community development as a planned and organized effort to assist individuals to acquire the attitudes, skills, and concepts required for their democratic participation in the effective solution of as wide a range of community improvement problems as possible in the order of priority determined by their increasing levels of competence. (p. 29)
Moreland and Lovett (1997) see community development as a learning process that involves people in experiences from which they will learn ways of enhancing their capacity for selfdirected activity and destiny. From a social interventionist or animation sociale view, community development can be described as “the process of animation that gives rise to a process of self-education, the essence of which is a heightening of the capacity for self- determination.6
Lotz (1977) identified two types of community -- the vertical or geographical one (street, neighbourhood, or reserve), and the horizontal or non-geographical one (teachers, farmers, and social classes). The central concept of community implies territoriality or constituency, which usually leads to the establishment of boundaries and the monitoring of who crosses them. It is necessary for a community to acknowledge its problems, and need for assistance, before an external agency attempts to ‘come in' and start a community development process; otherwise, the development worker could be perceived as an “unwarranted intruder” (p. 9). Lotz also provided a definition of development, as A...an unfolding, a growth from within, an organic process that involves a fuller and richer working out of what has already been started...@(p. 9).
The community development process engages in politics, leadership, power attainment, group dynamics, learning, and social change; thus, it is “multidisciplinary and draws from political science, sociology, social psychology, social work, and adult education”7 Some of the characteristics of the community development process are as follows: community member involvement in problem-solving and decision-making; a learning process that is geared towards a change in behaviour and requires learning by doing; participants who increase their competence and capacity to manage their own affairs; and a grass-roots approach to social action8. The success of the community development process can be judged in terms of the community=s capacity building, group development and empowerment, and the achievement of social, economic, cultural and environmental targets and objects.9
The United Nations defines community development as "a process where community members come together to take collective action and generate solutions to common problems."[ It is a broad concept, applied to the practices of civic leaders, activists, involved citizens, and professionals to improve various aspects of communities, typically aiming to build stronger and more resilient local communities.
2.2.1 Impact of digitalization on community development
Rural communities worldly are dealing with diverse challenges. As Wilson (2010) indicated, many places in rural regions find themselves at a turning point, due to changes that these communities often have no direct influence over as these are driven by forces beyond the regional and even national levels. Among others, McManus et al. (2012) noted that many rural places in developed countries are facing rural decline caused by sectoral change, which in turn is leading to smaller numbers of jobs. In this context it is important to consider that areas facing population decline in particular struggle with the limited availability of financial resources (Raugze, Daly, & van Herwijnen 2017)
It was suggested that digital technologies can assist rural places to become better connected and thereby overcome the disadvantages of their remoteness (Townsend, Sathiaseelan, Fairhurst, & Wallace, 2013). Nevertheless, Next Generation Access is still lacking in many rural regions throughout Europe (Ashmore, 2015; Salemink & Strijker, 2018). This is not only an infrastructural problem, as also the skills and motivation required to make use of Next Generation Access are not always guaranteed in rural areas (European Network, for Rural Development [ENRD], 2017a; Lameijer, Mueller, & Hage 2017). To tackle the connectivity, and especially the adoption problems, some places have implemented rural digital hubs (ENRD 2017a). Rural digital hubs have not yet received a great deal of attention in the academic literature, a clear conceptualization is still lacking and generally, adoption studies are less available compared to information and communication technology (ICT) provision studies (Salemink, Strijker, & Bosworth, 2017). However, considering the challenges that rural places are facing today, it is important to study this issue in greater depth. The ENRD (European Network for Rural Development) expects that a rural digital hub will have broad benefits for local communities. Not only do they take into account the benefits associated with digitisation— for example, improving the digital literacy of local inhabitants and local businesses or providing fast broadband connections—but the ENRD also stated that rural digital hubs can strengthen the local community and attract new residents or businesses. Further, it was suggested that these improve conditions for economic activity, such as networking possibilities (ENRD, 2017b). Such possible benefits were also noted by Ashmore and Price (2019), and Roberts, Anderson, Skerratt, and Farrington (2017) mentioned ‘community technology hubs' as possible training places for digital inclusion.
It was suggested that digital technologies can assist rural places to become better connected and thereby overcome the disadvantages of their remoteness (Townsend, Sathiaseelan, Fairhurst, & Wallace, 2013). Nevertheless, Next Generation Access is still lacking in many rural regions throughout Europe (Ashmore, 2015; Salemink & Strijker, 2018). This is not only an infrastructural problem, as also the skills and motivation required to make use of Next Generation Access are not always guaranteed in rural areas (European Network, for Rural Development [ENRD], 2017a; Lameijer, Mueller, & Hage 2017).
To tackle the connectivity, and especially the adoption problems, some places have implemented rural digital hubs (ENRD 2017a). Rural digital hubs have not yet received a great deal of attention in the academic literature, a clear conceptualization is still lacking and generally, adoption studies are less available compared to information and communication technology (ICT) provision studies (Salemink, Strijker, & Bosworth, 2017). However, considering the challenges that rural places are facing today, it is important to study this issue in greater depth. The ENRD (European Network for Rural Development) expects that a rural digital hub will have broad benefits for local communities.
Not only do they take into account the benefits associated with digitisation—for example, improving the digital literacy of local inhabitants and local businesses or providing fast broadband connections—but the ENRD also stated that rural digital hubs can strengthen the local community and attract new residents or businesses. Further, it was suggested that these improve conditions for economic activity, such as networking possibilities (ENRD, 2017b). Such possible benefits were also noted by Ashmore and Price (2019), and Roberts, Anderson, Skerratt, and Farrington (2017) mentioned ‘community technology hubs' as possible training places for digital inclusion.
2.3 Conceptualization of Rural Digital Hubs Types
Digital hubs are physical spaces with access to superfast broadband alongside community and business focussed services. They provide digital connectivity, support the development of digital skills and encourage the use of emergent digital technologies. Digital hubs aim to enhance the local digital environment and can be available to the public, businesses, or local authorities, or a combination. Digital hubs can target digital awareness, help tackle digital competency gaps or simply provide a much needed superfast broadband connection in rural areas.
The term ‘hub' is used widely and concerns various fields. Before defining it in relation to digitalisation, we will look at its general meaning. In urban studies, for example, it might refer to cities. Derudder, Conventz, Thierstein, and Witlox (2014) described ‘hub cities' as interconnected and as ‘knowledge hubs'. Neal (2014) spoke of ‘hub cities' as nodes and focal points of networks in an urban context. The economic advantage of such cities is stressed, with the city being described as a ‘hub of activities' (Neal, 2014). More generally speaking, a ‘hub' may describe a geographical place (Ramirez, 2007). However, hubs are not necessarily physical entities: an e-hub stands for a business-to-business web market, which brings providers and customers together (Kaplan & Sawhney, 2000). Further, households likely host a hub. Since many homes are equipped with various ICT equipment nowadays, these can also be described as ‘infrastructural hubs' (Hjorthol & Gripsrud, 2009). Thus, although the term is used in various contexts, it always describes a central point or place where the main action occurs. A further essential topic associated with hubs is the flows and spokes, as the example of transport hubs suggests (Bowen, 2012).
Concerning transport hubs, Pettit and Beresford (2009) introduced the transformation of ports from ‘gateways' into ‘logistic hubs' and the increasing focus on value addition. We argue that flows and value addition are important aspects of rural digital hubs. People coming to the hub can be regarded as flow, receiving additional services at the respective facility. In the academic context, the term ‘rural digital hub' itself has rarely been discussed. Instead, other terms have been used for various hub forms, most of which are not specifically applied in the context of rural areas. These will be introduced in the following subsections.
The ENRD published a definition of rural digital hubs, which we have taken as a starting point for our review of the literature: Rural digital hubs offer physical spaces with fast, reliable internet access that provide a whole range of business and community support services in rural areas. The activities offered by digital hubs depend both on whether their target is businesses, the community, or both and whether they provide space or also specific services to their target groups. Most digital hubs cannot be categorised within a single category of activity, but carry out a combination of these. (ENRD, 2017a) Nevertheless, we think it is of importance to either verify, or maybe adapt, this definition depending on what kind of rural digital hubs exist and what their characteristics are. This can help policy makers to differentiate approaches, especially in the light of a European policy agenda increasingly focusing on digitalisation.
2.3.1 Digital hubs focusing on businesses
We have identified several forms fulfilling the description of a rural digital hub focusing on businesses. One of these is ‘rural enterprise hubs'. With their assistance, businesses shall be supported and new businesses developed. Almost all case studies of rural enterprise hubs by Cowie, Thompson, and Rowe (n.d.) offer broadband, fitting to the rural digital hub concept. Mostly these provide several services, for example, (a) shared amenity space, (b) office space, (c) support, and (d) networking opportunities. While these spaces are not specifically assigned to rural areas, ‘co-working spaces' can also be classified as one of the previously described enterprise hubs. According to Fuzi (2015), co-working spaces are designed for entrepreneurs to share with others. For example, these can aim at sharing technologies, exchanging information, seeking cooperation, or finding support.
Various facilities may be offered and support in a variety of forms may be given. As one study from Finland suggested, co-working spaces can be further differentiated into subcategories such as ‘third places' and ‘incubators'. Incubators are workspaces that are shared by a group of people aiming at the establishment of business activities while third places are used by the public at large. These usually offer other services, for example, a cafeteria (Kojo & Nenonen, 2016).10 11 Writing about co-working spaces in a rural Swiss area, Bürgin and Mayer (2020) mentioned that they were also declared as ‘mountain hubs'. A similar term used by Buksh and Davidson (2013) 11is ‘digital work hubs'. These are presented as a combination of co-working and teleworking and as places which can assist regional agglomeration and reduce economic differences.
Digital work hubs are largely designed for people normally commuting to work or working at home. A special form of enterprise hubs is ‘creative hubs': These are defined as places primarily offering business support to creative small and medium-sized enterprises (SMEs) (Virani, 2015). Further specialised, ‘technology and innovation hubs' can be a kind of co-working space for people working in the digital technology sector to collaborate there. Another name can be ‘tech hub' or ‘ICT hub'. Various services can be offered, also incubation or community building can take place there (Jiménez & Zheng, 2018).12
[...]
1 M. Malloch Brown, UNDP Administrator (Harris 2002:1)
2 (Chandler 2000; Curtain 2003; Soeftestad and Sein 2003)
3 (Mansell 1999; Benjamin 2001; McNamara 2003, Arun et al 2004, Economist 2005)
4 (Westrup and Al- Jaghoub 2005
5 (Sviridenko,2017).
6 (Draper, 1971, p. 160).
7 (Hamilton, 1992, p. 33)
8 (Draper, 1971)
9 (Lovett, 1997)
10
11
12
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