Introduction to Green Microenterprise Development Presented by Jason Friedman, Principal Friedman Associates Funded in part by U.S. Small Business Administration PRIME Program Hosted by Oregon Microenterprise Network (OMEN)

Our 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?

What Do We Mean by “Green?”

The Green Economy Consumer 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).

Why Now? Demands for increased transparency; Need to support a growing and developing population; Rising public concern for the impacts on the environment; Climate change.

How is Green is Good Business? Reduce waste =increase profits Increase 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!

What's “Green?” How far must a company go to be considered a green business? How do you define a green business?

Which Cleaning Business is “Green?” 1.Uses nontoxic products for residential and office cleaning. 2.Uses its own homemade products and packages into reusable kitchen spray bottles; no shipping required. 3.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.

Scott 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.

Definitions 3.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.

What Green is Not The 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.

Caution! 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.

Let's Talk? 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?”

Green = Organizational Sustainability? Also, from an institutional perspective, developing expertise in green business development can lead to: – Increased visibility; – New strategic alliances; – New funding; and – Increased sustainability.

What roles are other MDOs playing in the Green Business Movement?

Enterprise 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.

Specialized Workshops

AnewAmerica'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.

Latino 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.

LEDC 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-degradable Commercial composter Grease recycler Find local suppliers of environmentally friendly products Hear about DC's recycling and composting initiatives from the District Department of the Environment

LEDC – Green Cleaning Staff 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 samples Developed with Anca Novacovici, owner of eco coach ( and author of the book "Sustainability 101: A toolkit for your Business"

Other Green Training and Workshop Ideas The Key Principles and Steps to Incorporating Green & Environmentally Responsible Practices into Your Small Business Evaluating environmental and natural resource market issues and identifying environmental enterprise opportunities Understanding Green Marketing Terms and Labels and their Potential for Benefits for Your Business. Greening Hospitality Green Waste Management, Green Gardening and Green Landscaping Business Opportunities

Specialized Business Technical Assistance

How 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?

Sustainability Assessments: Neighborhood Assets, Spokane, Washington Approved loan clients receive a thorough sustainability assessment conducted by Sustainable Local Investments Project (SLIP).sustainability 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.

Green Sustainability Checklists General sustainability checklists.checklists Here’s another one.one For a landscaping business.landscaping Food facilities business. Food

Green Business Financing

Mountain 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.

37 A new brand… Georgia Green Loans provides capital to start or expand an eco-friendly product or service or “green” an existing business What is Georgia Green Loans?

38 Organizational Structure Collaborative of SBAC (Small Business Assistance Corp out of Savannah) and ACT (Albany Community Together, Inc.) The Georgia Green Loan website is tied into all 3 entities If someone hears about us and goes to the website to apply for a loan, when they select their county, it automatically routes them to the site that handles that area - one of the three of our websites The 3 lenders meet monthly

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40 Georgia Green Loans Advisory Council Guide the green loan program Provide expertise in green business development Bring connections to potential funders and individual donors Assists in guiding the establishment of Georgia Green Loans in the state of Georgia They are leaders in the community and people with highly respected skills in critical areas At least two members will be current clients of GGL They will serve a term of 2 years and meet quarterly Examples: Georgia Organics, Southface Energy Institute, foundations

41 Georgia Green Loans Metrics Demographic Data collected on all loans Environmental Benefits? Energy conservation through reduction Energy efficiency improvements Renewable energy generated Toxic substances reduced, reused, recycled or eliminated Waste products reduced, reused, recycled or eliminated Water quality preservation Water use reduction Other? Business Benefits? Lower Fuel Costs Renewable energy created Toxic substances eliminated Waste costs reduced or eliminated Water quality enhanced Water use/cost reduced Other?

42 Success = 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 covers

43 Target Markets:  Commercial  Public sector  Non-profit organizations Goals: Control costs Save energy Create a comprehensive energy strategy, and Achieve an excellent return on investment. Success = SolarFlex Technologies

44 Results 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.

45 ACE 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 businesses  70 small business loans for energy upgrades  175 jobs created or retained*  Energy consumption measured to determine impact * Calculated on ACE’s Georgia Green Loans multiplier ARRA Commercial Energy Efficiency Grant

So, if you want to be a key player in green business development, take the following steps:

#1: Walk the talk! Do you know what it takes to be green? Check out and for examples of standards that define what a small business or public agency must attain to be certified “green.”

#1: Walk the Talk! For both your organization and your clients, being green extends to your purchasing decisions and how you develop and provide your products and services so it has a positive impact on the environment. Start developing an organizational sustainability plan to become green (and it’s ok if there are areas where for various reasons you can’t be 100% green).

#2: Do your homework: What does the green sector look like in your community?

#2: Do your homework Build your knowledge base & seek out other 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 contractors.

#3: Convene Gatherings So get involved, or take the initiative and talk with your local chamber, SBDC partner and local government about convening a gathering of 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 could also identify potential resource providers, volunteers, mentors, and stakeholders to help you launch a green initiative.

#4: 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. Incorporate the principles of sustainability into your training and post-loan technical assistance.

#5: Broaden Your Case Statement for Support Being seen as a leader 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.

Resources Green Branding: Why Originality Matters by Jerry Stifelman originality.php originality.php Naturally Successful Video: Green Resource Took KitTook Kit

Thanks! For Further Information: Jason Friedman, Principal Friedman Associates