We are experiencing the rise of the fourth economy in our history, in which a sense of purpose is recognised as a critical human need and driver of innovation

In biology, mutations happen naturally in animals. A given animal exhibits traits that are different from their brothers and sisters. At a certain point, if you see a pattern of these similar mutations, you realise a biological event is occurring. The species is evolving. It is becoming a different animal.

The same is true of society and the economy. We are seeing a pattern of changes that are happening across industries and geographies on a rapidly increasing scale. From new companies, such as Etsy, Lenddo and Good Eggs, the pattern of reported changes today points to the likelihood that we are in the early stages of social evolution that is creating a new economy, one based on the creation of purpose for people.

With 20 million members and $1bn in sales last year, Etsy, an online marketplace for handcrafted products, has a commitment to employees, communities and the planet. Its Employee Happiness Survey, developed with researchers from the University of Pennsylvania, found that overall employee engagement is 80% positive, compared to the national average of 60%.

Another online marketplace, Zaarly, connects consumers to local products, wellness programs and services provided by their neighbours. Success for the company is when one of its sellers is able to quit their day job because of business generated by their Zaarly storefront. It works by building deep loyalty and a community of employees and customers, in other words connecting people through purpose.

And Good Eggs, an online farmers' market, claims that financial profit is a byproduct and an enabler of its overall mission: to ensure local food leads to a better world.

This is a shift from the era of Walmart and Amazon, which created tremendous profits for a few, but eroded opportunities for the many, including local communities, small businesses and artisans. Online marketplaces such as Etsy and Zaarly are aiming to help small businesses flourish again.

When the agrarian economy evolved into the industrial economy, we saw similar small changes grow into patterns, which precipitated a radical transformation of society and the economy over the period of around 100 years. About 75 years ago it happened again with the evolution from the industrial economy to the information economy. This took far less time to evolve – closer to 25 years. We are now seeing the rise of the fourth economy in our history.

It is too early to know the exact nature of this new era but looking at all the reported changes from the field, one common pattern emerges. They are about an increased need for purpose. We live in an era where purpose is becoming the driver of innovation and growth.

Purpose is a critical human need and one that in the industrial and information economies was sacrificed to maximise efficiency and scale. We lived longer and got faster, bigger and smarter but lost connection to our humanity. We became a society organised and optimised around systems and institutions, not around people.

According to workplace researchers, Justin Berg, Jane Dutton, Amy Wrzesniewski at the University of Michigan, we now understand that people generate purpose through relationships, personal growth and doing something greater than themselves. They are also finding that it is vital to our wellbeing, as well as productivity.

While the nonprofit sector, which in the US accounted for 5.5% of GDP in 2012, is certainly a part of the purpose economy, it is by no means the only sector driven by the provision of services to improve lives, inspire personal growth or expand community. The purpose economy impacts all sectors of the broader economy including education (5.4%) and healthcare (nearly 18% of GDP).

We also need to include models that support expression and community building: companies such as Facebook and YouTube. Additionally, the global market for lifestyle of health and sustainability (LOHAS) is estimated at $540bn, covering products and services focused on health and fitness, the environment, personal development, sustainable living, and social justice. The peer-to-peer or sharing market is now estimated at $26bn. Even green building materials generate $116bn globally, and that number is expected to more than double by the end of the decade.

The financial sector is including more purpose-driven ventures. Morgan Stanley announced their multibillion-dollar Institute for Sustainable Investing, and several states are experimenting with social impact bonds.

The good news is that all sectors of the economy are rich with opportunities for purpose. Companies are now dedicating more of their business to creating purpose, and more innovative organisations are being created including low-profit limited companies (L3C) or B Corps, which place profit alongside a social mission.

Companies that thrive in this new economic era will be the ones that work with their employees to understand what generates purpose for them and craft their jobs accordingly. It's a journey that begins with self-awareness. It is about engaging your employees around their relationships, and offering opportunities for creative expression and to make an impact on their local communities.

Aaron Hurst is CEO of Imperative, a technology platform that enables people to discover, connect and act on what gives them purpose in their work. He is author of The Purpose Economy: How Your Desire for Impact, Personal Growth, and Community is Changing the World

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