Presentation on theme: "Introduction to Green Microenterprise Development"— Presentation transcript:
1Introduction to Green Microenterprise Development Presented by Liz Penney, Director of Community Outreach, Appalachian Community Enterprises/Georgia Green LoansJason Friedman, PrincipalFriedman AssociatesFunded in part by U.S. Small Business Administration PRIME Program
2Our Objectives Today What do we mean by ”green” microenterprise? What is the role of MDOs in the Green Business Movement?Does ”green” make sense as a strategy for MDOs? What goals does this accomplish? Does it contribute to our ”bottom line?”What are our colleagues doing in this area?What are the elements of a green microenterprise strategy?
12The Green EconomyConsumer spending in the green economy is growing rapidly.In 2005 in the U.S. alone, there was a $228.9 billion market for goods and services focused on health, the environment, social justice, personal development and sustainable living.These include purchases related to renewable energy, organic food, alternative fuel vehicles, non-toxic cleaning products, alternative health care and resource-efficient products.This market – sometimes referred to as LOHAS, short for Lifestyles of Health and Sustainability -- is projected to reach $1 trillion annually by 2020 (LOHAS Journal, 2007).
13Why Now? Demands for increased transparency; Need to support a growing and developing population;Rising public concern for the impacts on the environment;Climate change.
14How is Green Good Business? Reduce waste =increase profitsIncrease revenue by recognizing, meeting, anticipating customer expectations for better, safer and more benign products and services.Reduce risk by eliminating hazards to workers, customers, and the world before the regulators require you to!
15What's “Green?”How far must a company go to be considered a green business?How do you define a green business?
16Which Cleaning Business is “Green?” Uses nontoxic products for residential and office cleaning.Uses its own homemade products and packages into reusable kitchen spray bottles; no shipping required.Like #2, but limits is geographic service area to one neighborhood and employees ride their bikes, eliminating the need to drive.All three could be described as “green” even though they vary considerably on where they fall on the continuum in terms of sustainability and environmental commitment.
17Scott Cooney in Build a Green Small Business defines it as one that incorporates the following attributes of environmental commitment into its business plan:1. Incorporates principles of sustainability into each of its business decisions. All three cleaning companies – looked at operations with environmental commitments in mind. With this focus, then as the business grows and new opportunities arise, they will be able to expand in the greenest manner that is most practical for them.2. Supplies environmentally friendly products or services that replace demand for non-green products. Patagonia – fleece out of recycled soda bottles; recycles; reduced demand for bleached, chemically farmed cotton products – drives more farmers to organic farming, recycling, less to oil companies.
18Definitions3. Greener than traditional competition. Organic farming is clear cut. Many businesses are not.Is a bike shop green? Downhill Mountain bikes? Likely need to be driven to the mountain and then carried up by chair lift. As opposed to a bike shop that sells commuting and road bikes ride right from their house.4. Commitment to environmental principles in its business operations.
19What Green is NotThe trouble with green is that it implies just “environmental.”But sustainability – living and doing business in ways that don't erode the potential for future generations – is commonly referred to as the triple bottom line (TBL) of economic, environmental, and social benefit.Social benefit is not about just “doing good.” It's also a path to creating significant durable business value.
20Caution!However, “green” is not just another sector to target like childcare, arts, or food.What makes green different is that it represents a specific philosophy and set of values about operating a business.The green business conserves natural resources, eliminates waste and stays ecologically in balance. It implement beliefs, policies, and practices that improve the quality of life for their customers, their employees, communities, and the environment.20
21Questions to Consider?How is your organization responding to the Green Business movement?Do you talk about “sustainability” with your clients?Does ”green” make sense as a business strategy for MDOs?What goals does this accomplish? Does it reflect your mission? Should it?Does it contribute to our ”bottom line?”
22Green = Organizational Sustainability? Also, from an institutional perspective, developing expertise in green business development can lead to:Increased visibility;New strategic alliances;New funding; andIncreased sustainability.22
23What roles are other MDOs playing in the Green Business Movement? 23
24Enterprise for Equity, Washington State Thomas grew his business from a traditional janitorial service to a Green Certified janitorial business.His services are in greater demand among some customers because of his certification – and he is able to charge a much higher rate.More than 25% of E4E businesses now selling their products or services in the region have a sustainability focus.24
26AnewAmerica's Green Business Certificate Program (San Jose, CA) Encourage entrepreneurs to adopt green, sustainable business practices.Entrepreneurs reach green business certification levels by greening their operations or offering a green good or service. All AnewAmerica certified green business owners must have an active social responsibility plan.Providing green business support through implementing green curriculum in its Virtual Business Incubator classes and hosting green business experts as guest speakers and coaching from current green business owners and professional consultants.
27Latino Economic Development Corporation, Washington, DC. In communities across North America, BALLE (Business Alliance for Local Living Economies) networks are launching campaigns to help consumers and entrepreneurs think locally.Created a business alliance, Local First DC, to promote small, local, and independent businesses, educating communities about the value of shopping locally, and advocating for the implementation of economically and environmentally sustainable business practices.27
28LEDC Greening Your Garbage Workshop LEDC’s Local First DC developed a workshop for businesses to learn how to improve and implement waste, recycling and composting programs in their small business.Learn from entrepreneurs who are composting their waste:Local recycler of bio-degradableCommercial composterGrease recyclerFind local suppliers of environmentally friendly productsHear about DC's recycling and composting initiatives from the District Department of the Environment28
29LEDC – Green CleaningStaff developed a course for owners of cleaning companies that are looking for an edge over their competition.Explain the advantages of “green cleaning,” recommend products, analyze the demand for these services in the DC area, and teach how to market the benefits of green cleaning.Connect to distributors and wholesalers who sell these products and provide free samplesDeveloped with Anca Novacovici, owner of eco coach (http://www.eco-coach.com) and author of the book "Sustainability 101: A toolkit for your Business"29
31Other Green Training and Workshop Ideas The Key Principles and Steps to Incorporating Green & Environmentally Responsible Practices into Your Small BusinessEvaluating environmental and natural resource market issues and identifying green business opportunitiesUnderstanding Green Marketing Terms and Labels and their Potential for Benefits for Your Business.Greening HospitalityGreen Waste Management, Green Gardening and Green Landscaping Business Opportunities31
33How Green Is Your Daycare? Questions For Caregivers Are employees allowed to smoke at or near the facility?Are pesticides used within or outside the facility at any time?Do you use least-toxic cleaners free of irritating chemicals, like chlorine, ammonia and synthetic fragrances?Are staff trained in eco-friendly practices, such as integrated pest management and the use of least-toxic cleaners?Do you test water for lead?Does the facility have wall-to-wall carpets, which gather dirt and expose children to allergens or throw-rugs that are cleaned regularly? Was chomated copper arsenate-treated wood used in any outdoor playset or furniture?Has soil been tested for contaminants?Do you use any art supplies on the CA Office of Environmental Health Hazard Assessment's list of products which cannot be used in grades K through 6?Do you monitor air for carbon monoxide?33
34Sustainability Assessments: Neighborhood Assets, Spokane, Washington Approved loan clients receive a thorough sustainability assessment conducted by Sustainable Local Investments Project (SLIP).Coalition of public and private organizations in the area SLIP provides access to specialists in the community who can help businesses make cost effective investments in energy conservation, alternative energy sources, waste reduction, and other environmental improvements.Commit to implementing certain recommendations from the SCORE assessment, they are given a 2 point discount on their loan. Follow up to ensure that they follow through on those implementation steps.34
35Green Sustainability Checklists General sustainability checklists.Here’s another one.For a landscaping business.Food facilities business.
36Green AmericaFounded in 1982, Green America is a national nonprofit 501(c)(3) organization.Empowers individuals to make purchasing and investing choices that promote social justice and environmental sustainability.Demanding an end to corporate irresponsibility through collective economic action;Promoting green and fair trade business principles while building the market for businesses adhering to these principles;Building sustainable communities in the US and abroad.
37Green Business Network™ Certification Program Actively use their businesses as tools for positive social change;Run "values-driven" enterprises that operate according to principles of social justice and environmental sustainability;Are socially and environmentally responsible in the way they source, manufacture, and market their products and run their offices and factories; andAre committed to developing and employing extraordinary practices that benefit workers, customers, communities, and the environment.
38Green Business Network™ Certification Program If approved for full membership, the company receives a free 25-word listing in both the online version and the next print edition of the National Green Pages™, the right to use our exclusive Green Business Seal of Approval, and eligibility for advertising in our popular green consumer publications.
40Mountain Association for Community Economic Development (MACED) MACED works in eastern Kentucky & Central Appalachia to create economic opportunity, strengthen democracy and support the sustainable use of natural resources.The Energy Efficient Enterprises (E3) program helps businesses realize cost savings through the use of energy efficient equipment and systems or through renewable energy sources.Begins with an on-site energy assessment, followed by recommendations for change & assistance with identifying and choosing an independent installation company.MACED provides financing for identified improvements at low rates and flexible terms for each enterprise.40
43About ACEOur mission is to provide Access to Capital, Connections, and Education to help new and existing small businesses.ACE provides loans of $500 to $50,000 in 68 North Georgia counties, including the Atlanta metro area.ACE is an SBA Microloan Intermediary and CDFI.Since 2000, ACE has loaned over $4.5 million and created or retained over 1000 jobs.
44What is Georgia Green Loans? A new brand…Georgia Green Loans provides capital to start or expand an eco-friendly product or service or “green” an existing business4444
451,917 unique visitors since May 2009; ranked high in Google due to blog, Facebook and Videos 4545
46Target MarketsGreen industry businesses, including alternative energy, organic farming, recycling, conservation, green building and pollution prevention.“Traditional” businesses who want to implement green products or services, make energy efficiency improvements, or become more sustainable.“New jobs come from new young firms.”Kauffman Entrepreneur Foundation, 2009
47Success = SolarFlex Technologies Customers:CommercialPublic sectorNon-profit organizationsGoals:Control costsSave energyCreate a comprehensive energy strategy, andAchieve an excellent return on investment.4747
48Success: Georgia Mountain Berry Farms Eastanollee, GeorgiaMain produce: BlackberriesCurrently three part-time workersGOALS:Wholesale production15-20 local employeesGeorgia Grown/Georgia Made“This area used to be all textiles…it can become an agricultural force in Northeast Georgia”- Arthur Thomas, Owner/Founder
49Success: American Installation Corp. Energy efficient exterior doors using recycled materialsReceived loan for expansionThree employees added since loan was made“Every component of our metal and glass doors is American Made! Plus, no one else is building these doors in the US.”- Israel Greene, Owner
50Success = Better for Babies, Inc. Inspired overseas Better for Babies, Inc. now has its roots firmly planted, and growing, outside Atlanta.Owner Leah Carter, opened her own manufacturing facility near her town’s square.Leah and her partner, Lauren Parker, operate local sustainable production, fair wages, green business practices, and an uncompromising commitment to quality products, innovation and customer service.Little Beetle organic diapers and wool covers5050
51Results Thus Far… 16 green loans for a total of $377,756. Average green loan size of $23,610.Created/retained 84 full time and 4 part time green jobs.5151
52Demographic Data collected on all loans Georgia Green Loans MetricsDemographic Data collected on all loansEnvironmental Benefits?Energy conservation through reductionEnergy efficiency improvementsRenewable energy generatedToxic substances reduced, reused, recycled or eliminatedWaste products reduced, reused, recycled or eliminatedWater quality preservationWater use reductionOther?Business Benefits?Lower Fuel CostsRenewable energy createdToxic substances eliminatedWaste costs reduced or eliminatedWater quality enhancedWater use/cost reducedOther?5252
53ARRA Commercial Energy Efficiency GrantACE has been awarded $700,000 through GEFA, Georgia Environment Facilities Authority, to provide small businesses in North Georgia, including metro Atlanta, with education, technical assistance and funding for energy efficiency strategies.70 energy audit grants to small businesses70 small business loans for energy upgrades175 jobs created or retainedEnergy consumption measured to determine impactWork with industry groups to target high energy users* Calculated on ACE’s Georgia Green Loans multiplier5353
54Georgia Green Loans Advisory Council Guide the green loan programProvide expertise in green business developmentBring connections to potential funders and individual donorsAssist in guiding the establishment of Georgia Green Loans in the state of GeorgiaLeaders in the community and people with highly respected skills in critical areasAt least two members will be current clients of GGL2 year term; meet quarterlyExamples: Georgia Organics, Southface Energy Institute, foundations5454
55Collaboration with other lenders Collaboration with two other lenders: SBAC (Small Business Assistance Corp out of Savannah) and ACT (Albany Community Together, Inc.)When a business goes to the website to apply for a loan, their county selection automatically routes them to the organization that handles that areaRecent approval by SBA to split non-served middle Georgia counties5555
56ACE Self Greening Initiative as of 2/17/2010 Video ConferenceRecycle and Green PolicyWeatherizeGoal:Reduce electrical costs associated with conditioning ACE office.Steps Taken:Energy Audit has been conducted.Bids taken for Insulation and HVAC.Data capture spreadsheets created to capture effects and payoffStatus:Larry is discussing bids with partner, awaiting outcomeGoal:Reduce travel costs and Green House EmissionsSteps Taken:Discussed technology/equipment with James.Data capture spreadsheets designed to capture savings, payoff, and emission reductionsStatus:Waiting on Green light to purchase equipment and set up Skype at various locationsGoal:Recycle, Reduce, Reuse through efficient workplace behaviorSteps Taken:Weekly Recycling pickup service.Recycling boxes added to make recycling easier.Status:Need to brainstorm on ways to balance consumption and productivity.Create a policy that reduces office costs and promotes green behavior.02/28/10
57So, what are the next steps for my organization? 57
58#1 Develop Your Organizational Sustainability Plan Effective practitioners model sound business behaviors to their clients.Use the tools provided to develop your own plan.Start with practical, cost-effective steps and build on it.
59#2: Do your homework: What does the green sector look like in your community? 59
602: Build your knowledge base & seek out experts economic development organizations,state economists,renewable energy entrepreneurs,farmers,business people who market green building materials,sustainability advocates,environmental organizations,recycling program coordinators,agricultural researchers,university extension agents,environmental lawyers,community development consultants,pollution remediators,composters,green building contractorsGreen entrepreneurs in your community!
61Step 3: Begin the Dialogue with Your Clients Incorporate language about sustainability into the curriculum and encourage clients to build those concepts into their business plan.Ask them to sign a sustainability pledge. Use/adapt the sustainability/certification checklists.Partner with a local government green certification program.
62#4: Convene GatheringsJoin a local business sustainability group or convene a gathering of local experts to talk about green business opportunities.From this dialogue, you may identify opportunities and gaps in the sector and help develop a plan to address them.You may also identify potential resource providers, volunteers, mentors, and stakeholders to help you launch a green initiative.62
63#5: Start a Pilot Project Start your green initiative with a simple workshop for your clients on “The Basics of Starting a Green Business.”Invite local businesses and experts to lend their perspective and provide advice.By this time, you’ll have a good idea on the feasibility of launching a broader set of services, including specialized training, technical assistance and lending.Talk with staff from green job training programs to assess interest in a self-employment training for contractors.63
64#6: Broaden Your Case Statement for Support Taking a proactive role in green business development will appeal to funders and donors who are increasingly directing their investments toward organizations and businesses that contribute to a clean, healthy environment, embrace equal opportunity and produce safe and useful products.Look at your current list of donors to assess their potential interest in a green initiative.64
65ResourcesGreen Branding: Why Originality Matters by Jerry Stifelman originality.phpNaturally Successful Video:Green Resource Took Kit65
66Upcoming Webinars Green Marketing and Messaging for Microentrepreneurs Developing Collaborations to Support Green Microenterprise DevelopmentGreen MicrofinanceOrganizational Development Implications for Green Microenterprise
67Thanks! For Further Information: Elizabeth Penney Director of Community Outreach Appalachian Community Enterprises (cell)Jason Friedman, Principal Friedman Associates