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Ecopreneurship – Concepts, Importance and Examples | Fundamentals of Entrepreneurship

Ecopreneurship

Ecopreneurship refers to a management philosophy whereby the business efforts of the entrepreneurs are not just only motivated by profit, but also by a concern for the environment.

It is also called environmental entrepreneurship and eco-capitalism. It is a new market-based approach which identifies the opportunities for improving environmental quality and capitalizing upon them in the private firm for profit.

Entrepreneurs are encouraged to pursue sustainable development while maintaining environmental balance. Entrepreneurs cannot ignore environmental issues while expanding and diversifying their business activities.

In present entrepreneurship literature and practice, a new stream of research has been launched which emphasizes on consideration of three dimensions of entrepreneurship activities consisting of economic, social, and issues.

In similar way, in the present time entrepreneurs should consider social and environmental issues along with the aim of fulfilling economic objectives.

Priority should be given to addressing the negative impact of economic activity on the social and environmental conditions of the surrounding area.

Ecopreneurship is based on three pillars: innovation, caring for the environment, and long-term sustainability of business.

Importance of Eco-entrepreneurship

Some of the importance of eco-entrepreneurship are as follows:

i. It encourages the practice of fair trade in order to maintain the company’s reputation and image.

ii. Sustainable policies can be established in specific settings to achieve local consumption.

iii. Entrepreneurs are encouraged to get involved in organic products.

iv. It emphasizes the need to keep the environment in a state of ecological balance.

v. It focuses on supporting business development by addressing economic, social, and environmental issues.

Example of Ecopreneurship

Volkswagen:

Volkswagen’s manufacturing plant in Chattanooga, Tennessee is an excellent example of corporate eco-entrepreneurship, having achieved platinum status through the U.S.

Among the best examples of eco-entrepreneurial spirit at the local level can be found at the VW plant.

The company collects and re-uses rainwater, to flush toilets and cool welding machines, a highly-reflective roof membrane to reduce heat island effect by 50 degrees F, and six inches of mineral rock wool for improved insulation, which saves 720,000 kilowatt hours annually.

The People’s Supermarket:

In contrast to conventional supermarkets, The People’s Supermarket cooks its own produce so that it can sell affordable meals.

Additionally, this market offers price-friendly products that help families with a smaller grocery budget, while also reducing waste and limiting their ecological footprint.

It is also exciting that the supermarket allows the public to be part of the staff for a short period of time (usually 4 hours per month), while offering benefits to employees as well.

Those who wish to participate in this market will receive a discount on their purchases.

It is also possible to become part of a flourishing community at The People’s Supermarket where people will take steps to prevent accumulating food waste.

The business model for grocery stores will remain wasteful for a while due to COVID-19 restrictions, which is unfortunate.

However, The People’s Supermarket is likely to serve as an example of a zero-waste supermarket by promoting zero-waste operations methods and bringing more people into the food supply chain.

Ecopreneurship for the Environmental Protection

It is challenging to believe that entrepreneurship do come up with genuine and innovative solutions for the protection of the environment and the climate.

But in the present time, the concept of eco entrepreneurship is buzzing around. In their targeted goal, one more goal is to use sustainability in their business operation.

Intending to conduct business sustainably helps an entrepreneur to reduce their cost and maximize efficiency along with the protection of the environment which they serve and are being served.

Today, we can see that companies are producing recyclable products and packaging their products using sustainable and environmentally friendly materials, to protect the environment and move toward the path of ecopreneurship.

Many companies are adopting the ideas of ecopreneurship and integrating them effectively into their market strategies and CSR concepts.

This can benefit both business organizations and society. For the business organization it can help to enhance their business promotion among its targeted customers.

Ecopreneurship can show a win-win strategy where the entrepreneurs can earn profit and the environment will be protected by the side.

This is an emerging issue in the concept of entrepreneurship. However, all the entrepreneurs may not be interested to be the part of the ecoprenerurship.

Still, they can contribute to it by applying ways to reduce waste, unwanted resources other activities that will help to protect the environment.

Barriers of Ecopreneurship

Some of the barriers to ecopreneurship are as follows:

i. There is lack of information about the concept econpreneurship which may be difficult for the ecopreneurs to enter the market.

ii. Business advisors of the organization carry limited knowledge regarding this matter and proper business advise could not be gained.

iii. Entrepreneurs lack awareness of the potential market of environmentally friendly businesses while starting their business.

iv. Entrepreneurs may fear trying this new concept in their business.

v. There may be limited public funding available for promoting sustainable enterprises.

People Also Ask

Who is a famous Ecopreneur?

Ecopreneurs are people who use their entrepreneurial skills to promote environmentalism.

Famous Ecopreneurs include Bill Gates, Richard Branson, and Steve Jobs. They all embrace the idea that businesses can help solve environmental problems.

Why is environmental entrepreneurship important?

Environmental entrepreneurship is important because it can help to improve the environment and create jobs. It can also help to reduce pollution and waste and promote green energy.

References

Gunawan, A. (2012, January). Research Gate. Retrieved from Research Gate.
Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2007). Entrepreneurship. New Delhi: Tata McGraw-Hill Publishing Company Limited.
Huang, K. (2020, August 27). Pitch It Green. Retrieved from Pitch It Green: https://www.pitchitgreen.org/post/why-is-ecopreneurship-important
Poudyal, S. R., & Pradhan, G. M. (2020). Fundamentals of Entrepreneurship. Kathmandu: Advanced Saraswati Prakashan.
Reset. (n.d.). Retrieved from Reset.org: https://en.reset.org/ecopreneurship-entrepreneurial-spirit-futureproof-world-03202019/
Wikipedia. (n.d.). Retrieved from Wikipedia: https://en.wikipedia.org/wiki/Eco-efficiency

Eco efficiency – Concepts, Aspects, Advantages and Disadvantages | Fundamentals of Entrepreneurship

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