Eco-entrepreneurship: Meaning, Characteristics & Examples – Eco-entrepreneurship, often known as ecopreneurship, is a new type of entrepreneurship. The reason for this rise is the world’s current environmental concerns. Environmental entrepreneurship, green entrepreneurship, sustainable entrepreneurship, biosphere entrepreneurship, and eco-entrepreneurship are all names used to describe this notion.
What is Ecopreneurship?
The name is derived from the words eco (as in ecological) and entrepreneurship. Ecology is a discipline of biology that investigates the interaction of organisms with their environment, whereas entrepreneurship is an economic activity that uses resources to produce goods and services. Thus, ecopreneurship is the development of new opportunities that aid in environmental protection in the pursuit of environmental sustainability.
Ecopreneurship is a subtype of sustainable entrepreneurship that focuses on ecological and economic sustainability, which means that the primary motive for ecopreneurs is to generate money by helping to the solution of environmental problems.
The concept of eco-entrepreneurship is included in the umbrella concept of sustainable entrepreneurship since it cannot only produce entrepreneurial rents but also simultaneously reduce market imperfection, bring markets toward equilibrium, and improve global environmental circumstances.
Eco-entrepreneurship refers to the measures taken by entrepreneurs who base their company strategy on environmental sustainability criteria. Ecopreneurs bridge the perceived contradictory worlds of the natural environment and business, with the goal of “radically” transforming industries, economies, and communities. As a result, they are likely to play a key role in energy provision, travel, food, housing, communication, water, and finance transformations.
Eco-entrepreneurship is a personal commitment to be a role model that he missed while stuck in “the rat race,” as well as to identify and spread plants and techniques that work in the northern climate to oppose unsustainable land usage.
Ecopreneurs work to reduce environmental hazards to develop new opportunities and solutions in a livable world. As a result, ecopreneurship is an endeavor to conduct entrepreneurial activities that meet environmental criteria, thereby reducing environmental hazards, improving people’s well-being, and safeguarding future assets.
Environmental destruction is still a big problem and a global issue in the age of globalization. More and more entrepreneurs will expand their operations, further damaging the environment. Ecopreneurship has three major components: society and social, economy, and ecology/environment.
The rise of eco-entrepreneurship has been aided by a variety of consumer groups, as has the high demand for green products, particularly in industrialized countries. However, not all entrepreneurs are concerned about the environment. Environmental awareness begins in childhood and continues to be an important element of one’s business.
Read – Modern Entrepreneurship
Definitions for Ecopreneurship
Definitions for Ecopreneurship – Masjud, 2020 said – Ecopreneurship is a combination of the words ecological and entrepreneur, and it appropriately characterizes an entrepreneur who is concerned about the environment.
(Kirkwood and Walton, 2010) -The phrase “ecopreneurship” refers to a business’s reaction to corporate entrepreneurship and environmental issues. Ecopreneurship is widely described as the establishment of a firm based on environmental principles.
R. Isaak, 2002 said – A person who aims to shift an economy sector toward sustainability by establishing a business in that sector with a green design, green procedures, and a life-long dedication to sustainability.
Eco-entrepreneurship is a combination of the words “eco” and “entrepreneurship,” and it is also known as environmental entrepreneurship.
Walkton, and Kirkwood 2010 – Ecopreneurs are for-profit entrepreneurs who establish businesses based on strong environmental beliefs and market environmentally friendly goods or services.
In a narrow sense, ecopreneurship is commonly defined as the establishment of a new company based on natural resources, such as an organic products company.
Eco-entrepreneurship is the process of developing new company concepts while emphasizing sustainability as a fundamental premise.
Ecopreneurship is a concept that combines the words “green entrepreneurship” and “environmental entrepreneurship.”
Ecopreneurs are divided into two categories based on two criteria – (C. Rogers, 2010).
1. Their desire to make the world a better place and improve people’s quality of life
2. Their drive to make money and expand as a company
Read – 4ps of Innovation
Characteristics of Ecopreneurship
- Ecopreneurship consists of all environmentally friendly practices
- Motivated by the view of sustainability
- Innovation Oriented
- Pathway for the Green Economy
- A New Philosophy Commercializing Business Ideas
- Related to the Economic Concept of the Common Good
- Ecopreneurship is a strategic tool
- Ecopreneurship is a Tool to Transform Society
- A Path out of Poverty
Ecopreneurship Consists of all Environmentally Friendly Practices
Ecopreneurship encompasses all ecologically friendly methods affecting products/services, the manufacturing process, technology, and the organization, whether technical or administrative.
Here are some examples of ecologically responsible practices:
Food trash can be recycled on-site or given to gardeners.
Water is cleaned and recycled on-site.
Use alternative chemicals or dispose of them in an environmentally friendly manner.
Set up a compost bin.
Develop a partnership with a repair shop to extend the life of your products.
Motivated by the View of Sustainability
A broad vision of sustainability motivates ecologically oriented enterprises. Although the firm’s business approach is centered on environmental stewardship, it is primarily motivated by the desire to build a better future for people. What distinguishes ecopreneurship from more typical business techniques is the owner-managers dedication to environmental improvement and a strong desire to increase the business’s sustainability.
Eco-entrepreneurship relies heavily on innovation. When it comes to implementing innovations, ecopreneurs are not only concerned with growing competitive advantage and profit, but they are also concerned with resolving sustainability challenges.
The ‘greenness’ of these creative techniques, however, differs widely across organizations. Small firms are often thought to be more sensitive to innovation than large firms, owing to pressure from the value chain, internal pressure, and pressure from regulatory stakeholders. Although the impact of a single SME responding to environmental concerns may be minor, the cumulative impact may be significant due to its importance in most economies.
Product eco-innovation is linked to cost leadership and corporations’ product differentiation initiatives. Manufacturing firms are under the most pressure to eco-innovate when compared to other company sectors, particularly the service sector because they are the closest to the market’s final consumers. Companies constantly watch market trends and invest in innovative capabilities, notably R&D, to seek and capitalize on commercial prospects.
Pathway for the Green Economy
Climate change and environmental degradation with economic consequences are the most important worldwide issues of the twenty-first century. This sparked an investigation into the green economy. A green economy is usually seen as a global collective economic adjustment capable of mitigating the negative repercussions of environmental degradation and climate change. Through the Sustainable Development Goals, the green economy concept has the potential to be implemented on a national, regional, and international scale.
The Sustainable Development Goals can also be used to apply the green economy concept on a national, regional, and worldwide basis. (SDGs). The primary reason for the formation of the ideas of a green economy and green growth is a shift toward a more integrated and comprehensive approach to combining social and environmental aspects into economic processes to achieve sustainable development.
A New Philosophy Commercializing Business Ideas
Eco-entrepreneurship give a new method to commercialize product or service. It adds ecological value to the product beneficial to both entrepreneur and customer as well as the environment.
Green marketing is a strategy for promoting eco-friendly products in which the environmental benefits of the business are the primary focus. You accomplish this by stressing the environmental and societal benefits of using the offered items or services.
Related to the Economic Concept of the Common Good
Ecopreneurship is linked to the economic notion of the common good, which refers to the promotion and transmission of human values such as dignity, solidarity, sustainability, social justice, democracy, and transparency. The common good economy has a broad scope and includes ideas that affect not just people but also the environment. The firm’s purpose is to conduct business without negatively impacting people or the environment.
Ecopreneurship is a Strategic Tool
Strategic tools are instruments used by businesses to develop and implement procedures and structures that increase profitability. These tools depict a company’s current financial situation, establish its long-term objectives, and detail the methods that can be implemented to accomplish those objectives.
The implementation of sustainable policies has two advantages: it improves profit prospects and is environmentally friendly.
Ecopreneurship is a Tool to Transform Society
Ecopreneurs are important players in the evolution and development of institutions. Entrepreneurs can utilize this technology to positively influence society by presenting and spreading their products or services. The greatest societal benefit is that eco-entrepreneurship allows us to establish a fair environment for all humans on the planet. It is possible to achieve this through fair trade or fair opportunity.
A Path out of Poverty
Eco-entrepreneurship is increasingly being viewed as a means of escaping poverty. ‘Ecopreneurship is on the increase in Africa, producing local solutions to alleviate poverty and numerous environmental challenges afflicting the continent’s many countries,’ for example.
Eco-entrepreneurship is viewed as a means of simultaneously lowering the growing waste problem, creating jobs for residents, and assisting in the transition to a more energy-intensive lifestyle that does not rely on fossil fuels.
Firm Size and Ecopreneurship
It is debatable how corporate size affects environmental actions. Large enterprises have a larger resource base, allowing for greater R&D and indirectly promoting innovation and the development of ecopreneurship. This link is stronger in the manufacturing sector than in the service industry, because the latter emphasizes implementation rather than innovative development. Small enterprises, on the other hand, are more adaptable, with less organizational inertia and route dependency, opening up the potential for ecopreneur projects. The ability of a company to absorb government regulations, that is, the ability to understand and access tax-funded programs supporting the commercialization of sustainable ideas and development, also influences the relationship between firm size and eco-entrepreneurship. Because small businesses have fewer administrative tasks, they are more likely to miss nonmarket government-subsidized ecopreneurship techniques.
1. Organic Products
Organic items are environmentally friendly since they are produced without the use of chemicals such as fertilizers, pesticides, and the like. However, if these products are not obtained locally, their carbon footprint will be bigger, reducing their green worth.
Organic products and organic meat provide a different production strategy than conventional production to create a balance between the economy and nature. Furthermore, this is a profitable formula for industries that create natural products utilizing organic methods, which reduces the consumer health and environmental hazards linked with chemical items used in traditionally produced food, such as fertilizers and conservatives.
2. Fairtrade Products
Fairtrade, as defined by the World Fair Trade Organization (WFTO), is a trading system based on discussion, transparency, and respect that seeks more equity in international trade by emphasizing social and environmental criteria. It promotes long-term growth by improving trading conditions and defending the rights of underserved farmers and employees.
Synergies among the various groups affected by the ecological transition are required to promote long-term well-being for all. These synergies are only achievable with the producers’ and distributors’ alliance and cooperation, as well as consumer activists’ demands. Thus, fair trading is an example of Ecopreneurship.
3. Local Consumption Products
Consuming local products also reduces the carbon footprints of businesses and consumers by reducing or eliminating intermediaries between the producer and the consumer. By reducing the number of middlemen, greenhouse gas emissions from shipping these products are reduced.
Local consumption typically refers to small and medium-sized firms (SMEs) in a specific area that promotes environmental and sustainable principles. This is another illustration of the eco-entrepreneurship concept.
4. The People’s Supermarket
Unlike traditional supermarkets, The People’s Supermarket prepares its items to provide low-cost meals. Furthermore, this sector provides cost-effective solutions that assist families with a limited grocery budget while simultaneously minimizing waste and limiting their ecological footprint. It’s also thrilling that the supermarket allows the general people to work for them for a limited time (typically 4 hours per month), while simultaneously providing benefits to employees. Participants in this market will earn a discount on their purchases.
Eco- entrepreneurship is one of the best entrepreneurial solutions that can solve many ecological threats. Through this article, we discussed its characteristics, definitions, and examples.
So simply eco entrepreneurship is a sustainable entrepreneurial solution for ecology. It’s described using many terms. Those terms are described in this article.
Finally, Organic Products, Fairtrade products, Local consumption products, and The People’s Supermarket are some examples that we discussed for eco-entrepreneurship. Write down your thoughts and experience on ecological entrepreneurship in our comment section.