What happens to small businesses when urban areas are redeveloped?

Small businesses are the economic backbones for various communities, generating a bulk of employment and income for the local economy.

As urbanization increases and demands shift and grow, redeveloping such areas impact small businesses at large. Owing to development, these affected businesses either surge, or fall at the hands of the competition.

Taking Rawalpindi’s Murree Road example, an urbanization project converting the road into a signal-free thoroughfare, when completed, users' consumption patterns will inadvertently evolve by adjusting to new situations. Use of latest technology will encourage local businesses to innovate and rapid developmental growth around the area is expected post completion.

Urbanization processes have been prevalent all over the world, and while they have raised the living standards in many countries, they have also produced other economic, social and environmental costs. Uncertainties in the real estate markets in urban areas undermine the possibility of homeowners using their land and housing as collateral to support business investments.

Urbanization projects such as the Murree Road example above require immense business planning. Using DAO PropTech’s business model, the cost of existing infrastructure and businesses being affected by redevelopment is an additional cost that can be affirmatively built into the costing structure. The result, ‘sustainability’ by harnessing the existing power of the people and developing real estate to achieve new heights.

Speaking about urbanization, Yahya Chaudury, Head of Marketing at DAO PropTech added, “DAO PropTech’s use of an anonymous distributed ledger technology allows for all those who had to incur an economic cost to become a beneficiary of the redevelopment.”

Esa Imran

Marketing Communications Associate