Green Entrepreneurship: not only for today but for tomorrow
Entrepreneurship is the process of designing, launching and running a new business, which is often associated with high risk. The people who create these businesses are called entrepreneurs. Entrepreneurship is an outcome of complex balancing of opportunity initiatives, risks and rewards. Entrepreneurship is as a process by which people pursue opportunities, fulfilling needs and wants through innovations, without regard to the resources they currently control.
Where green entrepreneurship is that entrepreneurship where entrepreneur is more concern about the environment, social factors, sustainable growth. Green entrepreneurship is a process for the development of country without disturbing environment, and with the limited use of natural resources. Green entrepreneurship is an eco-entrepreneurship mainly driven by the demand of consumers who are interested in purchasing goods and services those are result of eco-friendly manufacturing processes.
The first attempts to define the green entrepreneur and describe his/her characteristics are in the 1990s. Hall (2013) mentions that the term “green entrepreneurship” appeared for the first time in the book “The Green Entrepreneur: Business Opportunities That Can Save the Earth and Make You Money” by Gustav Berle (1991). Berle’s definition is short, quite poetic, morally focused and maybe quite accurate: “Green entrepreneurship is taking responsibility to create the world we dream of.”
This paper will explain green entrepreneurship concept and its benefit to the environment and social growth. This paper will explain the difference in traditional entrepreneurship and green entrepreneurship.
C.C.S, UNIVERSITY, MEERUT
Entrepreneurship has been described as the “capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit” green entrepreneurship also include this factors but also focus is on social growth, environment and sustainable growth. A green company claims to act in a way which minimizes environment. As global warming continues apace and becomes an increasingly prevalent topic amongst world governments, many companies are doing their part to become environmentally more responsible or “green. In current market scenario, the studies show that consumers are now health and environment conscious. Perhaps this is the reason, that the concept of green product and green marketing are taking place slowly and steadily in the market. It can be also as an opportunity for those companies, who believe in innovation and redesigning their products and services in ecological manner. It is a perfect time for those entrepreneurs who want to come and be a part of this emerging green market. Green entrepreneurship includes green marketing, green price eco-labels, green supply chain management, green promotions, green position, green entrepreneur, green market, green company, etc.
Now a day many companies are working on green products for the welfare of society and environment. There Maine focus is on consumer preference rather than making profit. A number of major auto companies have developed alternative fuel vehicles and all-electric vehicles in a move to reduce petroleum consumption. Technologies include compressed natural gas, Fuel cell vehicles, Battery electric vehicles, and Hybrid electric vehicles.
In 2009, Atlanta’s Virginia-Highland became the first carbon-neutral zone in the United States. This partnership, developed by Verus Carbon Neutral, links 17 merchants of the historic Corner Virginia-Highland shopping and dining neighborhood retail district, through the Chicago Climate Exchange, to directly fund the Valley Wood Carbon Sequestration Project (thousands of acres of forest in rural Georgia).
CONCEPT OF GREEN ENTREPRENENURSHIP
Green marketing concepts and philosophies Green marketing concept evolve in 1960 when US and Europe has realized the environmental burden and formed agencies like environmental protection agency(EPA) with the objective of becoming green and clean. The ecological pressure was also realized by the business houses and they started greening business. The development goes on and till 1990 it took a proper shape. The American marketing association (AMA) conducted the first workshop on ‘ecological marketing’ in 1975. The proceeding of the workshop converted in the form of a book on green marketing entitled “ecological marketing”. It was the evolution phase of green marketing in the field of academia. Green marketing has various synonyms such as ‘ecological marketing’; ‘sustainable marketing’ and ‘environmental marketing’. The development of the green marketing is taking place rapidly now days as every organization want to enjoy the competitive advantage and it works. Green marketing not only helps in organizational competitive advantage but also responsible for organizational performance in many cases Organizations are adopting green marketing strategies due to assertive and defensive ways. Young and educated generation is taking very much interest in green products but there are still some obstacles such as substitution of the raw material, process redesign, cost etc. On the other hand various organizations are working on the reduction of the cost of green product with the help of reverse logistics and green supply chain management so that they can make the product more affordable for the maximum market segment 32. Automobiles are one of the highest pollutant product segments and therefore green marketing is also taken a better shape around the world and companies like Nissan, GM, Ford, Daimler Chrysler etc. and other car manufacturers are working aggressively in this area. Studies claim that the Green marketing is future of the marketing management
Green entrepreneurship is a global phenomenon, which has been steadily rising since last decade and which embodies a new paradigm of socio-ecological knowledge. With global warming and energy crunch, sustainable eco-friendly businesses have begun capturing world’s attention. It is felt that the adaptation of environmentally responsible business practices can open up new range of opportunities, as conceived by the entrepreneurs. At present green entrepreneurship thrown open numerous opportunities for beginners who identify and exploit them with their innovative ideas in serving the society and environment. As little is written on green entrepreneurship so far, and hardly any empirical research, particularly in India, this study aims at understanding perception of beginners on green entrepreneurship
Green Entrepreneurship is a process of pursuing a business with a new innovation mandatory to address the problem of the society and solve it completely or up to a certain extent along with taking care of environmental condition and its maintenance. This type of business basically does not only seek for profit but tends to conserve and improve 168 ? Annual Research Journal of SCMS, Pune Vol. 3, April 2015 the present condition of the environment and also providing something new and eco-friendly to the society. Research is surprisingly thinner in the Green Entrepreneurship field although there is an abundant prospect of sustainability in this area for the country like Nepal given its geological position. Green Entrepreneurship has been established in the other parts of the world and many have innovated several eco-friendly ideas and technologies which are very economic but these cannot be practiced in the country with low economy like Nepal. Countries like Nepal need region based ideas and technologies and that’s why they need more number of entrepreneurs working in this field.
Green entrepreneurship is the activity of entrepreneur for making the balance in business activities for sustainable growth of country, society and environment. It deal with the following
The following characteristics as inherent to green entrepreneurs:
They act as entrepreneurs, realizing ideas with a high level of risk
They have strong internal motivation related to a heightened sensitivity to environmental problems
They address an environmental/social problem/need consciously and this is at the core of their business activity
Their business activities have a net positive effect on the natural environment and at the same time they are financially sustainable
They consciously strive to contribute to a more sustainable future, contributing both with their social and environmental values.
“Green” entrepreneurship is an economic activity whose products, services, methods of production or organization have positive effect on the environment. This effect could be a result of the following:
Offering products or services the consumption of which leads to a change in the consumer’s behavior, reducing the negative effect on the environment;
Equalizing the ecological and the economic goals of the company;
Introducing innovative ecological solutions to problems connected with production and consumption of products and services;
Developing business models which, when applied to use, might lead to a sustainable economic development;
Discovering new possibilities on the market which are in connection with the demand and new way of living of the society.
We must know various term related to green entrepreneurship as follow:
Green product “Those products which are presumed environmentally safe called green product. It includes redesign and new product development process”
Energy efficient, durable and often have low maintenance requirements.
Free of Ozone depleting chemicals, toxic compounds and don’t produce toxic by-products.
Often made of recycled materials or content or from renewable and sustainable sources.
Obtained from local manufacturers or resources.
Biodegradable or easily reused either in part or as a whole.
Green price “Green price is also called premium price which is charged by the green customers that may be extra charge for the green product.” It is an optional service through which customers can support a greater level of investment by their electric utility in renewable energy technologies. Participating customers typically agree to pay a premium on their electric bill to cover the incremental cost of the additional renewable energy.
Green promotion “communicating about the green product to the customer.”
Green positioning “Positioning the green customer segment in long run”
Green marketing “Green marketing is a result of development in changing consumer behavior pattern towards green products. It profits to both consumer and marketers.” Green marketing refers to the process of selling products and/or services based on their environmental benefits. Such a product or service may be environmentally friendly in itself or produced in an environmentally friendly way, such as:
Being manufactured in a sustainable fashion
Not containing toxic materials or ozone-depleting substances
Able to be recycled and/or is produced from recycled materials
Being made from renewable materials (such as bamboo, etc.)
Not making use of excessive packaging
Being designed to be repairable and not “throwaway”
Green entrepreneur an entrepreneur, who develops green business with the help of adopting green practices. “Green entrepreneur is someone who starts and runs an entrepreneurial venture that is designed to be green in its products and processes from the very moment it is set up.”
Benefit of the green entrepreneurship to environment and society:
Conservation of Critical Resources like Water, Energy along with Recycling and Recovery of Pollutants from Waste not only Contribute to Cleaner Environment but also Higher Profitability of Operations
Need for Conservation Invariably Promotes a Spirit of Innovation that very often creates better Product Quality through better Processes
Better Value Creation for Customers Creates Profitability, Which in Turn Creates Better Shareholder Value Triple Bottom Line Effect Creates Positive Connect with Society and the Goodwill at large bringing in New Customers While Retaining the Existing Ones
Reduced Pollution Green entrepreneurship helps the environment by reducing the amount of pollution that enters the soil, water and air. By using alternative energy sources and avoiding the burning of fossil fuels, recycling and reducing waste and driving more efficiently, fewer pollutants are released into the environment. For example, a study by the Environmental Protection Agency found that air quality in the United States is steadily improving but as of 2008, approximately 127 million Americans still live in areas with potentially hazardous levels of air pollution. With climate change on everyone’s mind – especially the problems posed by greenhouse gases – savvy entrepreneurs are looking for ways to decrease our reliance on fossil fuels while making money. Alain Castro, CEO of HYPERLINK “http://ener-core.com/” “_blank” Ener-Core, Inc., is one such entrepreneur, and his company is working on the profitable conversion of industrial waste gases into clean power.
Fewer Greenhouse Gas Emissions Greenhouse gas emissions such as carbon dioxide are thought to be a significant contributing factor to global warming. For example, the U.S. Department of Energy estimates that cars produce approximately 1.7 billion tons of carbon dioxide (CO2) each year. By reducing the amount of time you drive, maintaining your vehicle or driving a green car such as a hybrid, you can help to lower your contribution to the global warming problem.
Resource Conservation The bulk of the electric power is generated by the burning of fossil fuels, such as oil, coal and natural gas. Burning these types of fuels releases greenhouse gases into the air, and their limited supply makes them unsustainable in the long-term. Reducing energy consumption, using alternative energy sources and recycling reduces the strain on these resources and cuts down on emissions. For example, the Environmental Protection Agency estimates that recycling just one plastic bottle conserves enough energy to light a 60-watt light bulb for up to six hours.
Less Waste green entrepreneurship encourages people to recycle as often as possible and reuse items in an effort to reduce waste. Reducing waste helps the environment by decreasing the amount of material that ends up in landfills, where they can biodegrade and release carbon dioxide which contributes to the greenhouse gas effect. The Environmental Protection Agency also encourages recycling in lieu of incinerating waste, which can release smoke or other potentially harmful pollutants into the air.
Wildlife Preservation green entrepreneurship also helps to preserve the habitats of certain species of wild animals. According to Planet Green, approximately 137 plant, animal and insect species become extinct every day due to rainforest deforestation. By reducing your consumption of paper products, buying recycled and recycling whenever possible, you can help to slow the rate of extinction for species that live in wooded areas. Going green also reduces the threat to marine wildlife that dies each year as a result of encountering pollutants or trash in the water supply.
Difference in traditional entrepreneurship and green entrepreneurship:
Green entrepreneurs must also always create value for the world, country, as well as for their company shareholders. Business entrepreneurs must evolve under a more restrictive fiduciary and legal mandate to maximize only their company owners’ wealth appreciation (i.e. they can get sued or ousted if they don’t) often in zero-sum fashion regarding financial relationships to all others, regardless how well the world fares as a result of this mandate in action.
Green entrepreneurs always looking for the sustainable growth of the country but entrepreneur are looking for the profit maximization of the company.
Green entrepreneurs are high risk taker for the economical balance of the country, entrepreneurs are risk take for the profit maximization of company.
Entrepreneurs maximum utilize the natural resource for the maximum output and benefit drive form them but green entrepreneurs maximum utilize the natural resource in minimum quantity for saving the natural resource and for environment safety.
Green entrepreneurship help in reducing pollution in the world but entrepreneurship is not concern about that.
Green entrepreneurship is providing green product and service for environment safety but entrepreneurship is related to all product and services.
Primary concern of Green entrepreneurship is to sustainable development for creating economical balance and equality in the society, entrepreneurship is related to profit maximization.
Green entrepreneurship is customer oriented, country oriented, environment oriented but entrepreneurship is profit oriented.
Business entrepreneurs deliver value to their customers through competitive pricing or better product or service offerings green entrepreneurs are primarily focused on social value creation thru positive impact on target communities along with creation of economic value.
Similarities between a green Entrepreneurship vs an Entrepreneurship:
Both look at making a sustainable business model
Both look at people as their assets and look at grooming them
Both look at business opportunities to get max returns for their work
Both look at market realities and study trends to perform better
In today’s day and age both take social media, online marketing and branding seriously.
There is a bright opportunities for the green entrepreneurs as the green market is expanding and consumer behaviour is favourable towards green market. The millennial respondents are aware of the emerging opportunities in the environment industry and are committed to economic development in the most sustainable manner with environmental, social and ethical values imbibed in their green ventures. The concept of green entrepreneurs starts from the environmental concerns such as pollutions, global warming, climate change, scarcity of natural resources and other havoc caused by disturbance in the ecosystem. A conscious focus to adopt Green economy has to be fostered for the development of green enterprises which would enhance the resilience of economy and a natural bio system. Green entrepreneurship is the most sustainable solution to the rising imbalance of nature and rapid destruction of natural resources. They offer significant contribution, not only in providing employment and generating income but also serve as engines of change, harbingers of innovation, new ideas and act as catalyst to adapting new technologies with flexibility and sustainability. The future belongs to the new generation who are inheriting limited natural resources and are thus committed to meet the growing needs of population through efficient and effective utilization of resources while being environmentally and socially responsible. We see the opportunity in newly upcoming green business and environmental concern, social and ethical values that should be imbibed into the enterprises, thereby achieving organizational and societal objectives for sustainable development of the economy. It is the policy makers, who address the problems of the green business enterprises financially, and conducive government policy and support in the form of tax holiday, concession, and subsidy, technical and financial support along with suitable environmental regulations that induce business community. At the academic level it is utmost important to include, educate and train graduates oriented towards pollution free business and activities that mitigate environment degradation problems.
Due to increasing awareness may be with the help of environmental knowledge and education people are becoming more responsive towards the environment. These factors are also responsible for the changing consumer behaviour towards green product or eco-friendly product. The perception towards green product gives a positive impact on the development of the green market. Green market is an emerging market, which brings ample of opportunities in every field such as greening supply chain, green production, green design and many more. The current market scenario has various opportunities for the entrepreneurs as well as for green entrepreneurs. These opportunities can be also helpful for bringing motivation and empowerment to the green entrepreneurs. The successful green entrepreneurs lead to the sustainable development in long term.
India is going to be one of the best destinations in the world for the investment point of view.
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Acme Intellects International Journal of Research in Management ISSN 2320 – 2939 (Print) ISSN 2320-2793 (online) Let your Research be Global search– An Ultimate search of Truth- Reforms through Research Vol- 1 No. 1 Jan 2013 “Aano bhadraa krathavo yanthu vishwathaha” – “Let the noble thoughts come to all from all the directions”.Green Entrepreneurship: A Perceptual Study on Motivation and barriers with special reference to Engineering and MBA Graduates Dr. P.Paramashivaiah a Mr. Puttaswamyb Mr. B.K.Sureshc