Environmental Entrepreneurship Notes

Definition and Overview

• Last of five fields of Entrepreneurship discussed in this unit.
• Adapted definition: Pursuit of opportunity with an environmental sustainability mission.
• Parallels with other forms of entrepreneurship, particularly social entrepreneurship.
• Involves collective benefit for society rather than individual profit.

Key Aspects of Environmental Entrepreneurship

• Often involves the development of new technologies (e.g., solar panels, wind farms).
• Share challenges with social entrepreneurship, including the diverse range of stakeholders.
• People who benefit from the impact may not be those who pay for it.

Corporate Entrepreneurship Opportunities

• Established businesses can benefit from involvement in environmental sustainability for reputation gains.
• Underutilization of opportunities in corporate entrepreneurship for sustainability.

Typology of Ecopreneurs

• Model from paper: Focus on two dimensions:
  1. Concern for sustainability vs. economic advantage
  2. Soft vs. hard structural influences

Four Types of Ecopreneurs

1. Ad Hoc Entrepreneur

   • Example: Berry Bank Pig Farm (uses pig slurry to generate electricity and fertilizer).
   • Traditional producers adapting to sustainability.

2. Innovative Opportunist

   • Example: Monique Conetti (founder of Flexar); focuses on profitable, sustainable business solutions.

3. Visionary Champion

   • Example: Anita Roddick (Body Shop); non-animal tested products, grew via word-of-mouth.
   • Example: Ray Anderson (Interface Carpets); aims for zero environmental impact.

4. Ethical Maverick

   • Example: Lentil as Anything cafes; pay what you think the meal is worth, supports the unemployed.
   • Example: Prince Charles; promotes organic farming principles on his estate.

Concept of Sustainability

• Definition: Development that meets current needs without compromising future generations' ability to meet theirs.
• Personal interest in sustainability impacts everyone, including future generations.

Opportunities and Challenges

• Environmental issues like climate change create significant entrepreneurial opportunities.
• Sustainability lens: Understanding the entire system and supply chain for businesses.
• Weak ties: Looking beyond immediate connections for collaborations and solutions.
• Incrementalism: Achieving large goals through small, manageable steps.

Trends Affecting Environmental Entrepreneurship

Supporting Trends

• Increased awareness of environmental damage.
• Rising energy costs.
• Interest in healthy living and sustainability.

Adverse Trends

• Powerful vested interests in maintaining the status quo (e.g., coal, energy industries).
• Consumer behavior often leans towards convenience over sustainability.
• Perception that environmental solutions are non-urgent (like vitamins).

Conclusion

• Entrepreneurs are optimists, focusing on supporting trends to create solutions for environmental challenges.
• Environmental entrepreneurship is challenging but can be rewarding both personally and financially.
• Importance of educating customers to promote sustainable behaviors.
• Engage with readings and activities to dive deeper into environmental entrepreneurship.