Transcript Introduction to Development Green Microenterprise

Introduction to Green
Microenterprise Development
Presented by Liz Penney, Director of
Community Outreach, Appalachian
Community Enterprises/Georgia Green
Loans
Jason Friedman, Principal
Friedman Associates
Funded in part by U.S. Small Business Administration PRIME
Program
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.
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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?
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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?
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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?”
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How far must a company go to be considered a
green business?
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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
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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.
Questions to Consider?
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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
(http://eco-coach.com) and author of the book
"Sustainability 101: A toolkit for your Business"
Other Green Training and Workshop
Ideas
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The Key Principles and Steps to Incorporating Green &
Environmentally Responsible Practices into Your Small
Business
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Evaluating environmental and natural resource market
issues and identifying green business opportunities
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Understanding Green Marketing Terms and Labels and
their Potential for Benefits for Your Business.
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Greening Hospitality
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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).
• 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.
• Here’s another one.
• For a landscaping business.
• Food facilities business.
Green America
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Founded in 1982, Green America is a national nonprofit
501(c)(3) organization.
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Empowers individuals to make purchasing and investing
choices that promote social justice and environmental
sustainability.
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Demanding an end to corporate irresponsibility through
collective economic action;
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Promoting green and fair trade business principles while
building the market for businesses adhering to these
principles;
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Building sustainable communities in the US and abroad.
Green 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; and
• Are committed to developing and employing
extraordinary practices that benefit workers,
customers, communities, and the environment.
Green Business Network™
Certification Program
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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.
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.
About ACE
• Our 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.
What 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 business
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1,917 unique visitors since May 2009; ranked high in Google
due to blog, Facebook and Videos
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Target Markets
Green 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.
Success = SolarFlex Technologies
Customers:
 Commercial
 Public sector
 Non-profit organizations
Goals:
 Control costs
 Save energy
 Create a comprehensive energy
strategy, and
 Achieve an excellent return on
investment.
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Success: Georgia Mountain Berry Farms
• Eastanollee, Georgia
• Main produce: Blackberries
• Currently three part-time
workers
GOALS:
• Wholesale production
• 15-20 local employees
• Georgia Grown/Georgia Made
“This area used to be all
textiles…it can become an
agricultural force in Northeast
Georgia”
- Arthur Thomas, Owner/Founder
Success: American Installation Corp.
• Energy efficient exterior doors using
recycled materials
• Received loan for expansion
• Three 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
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
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Results Thus Far…
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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.
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Georgia Green Loans Metrics
Demographic Data collected on all loans
Environmental Benefits?
Business 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?
 Lower Fuel Costs
 Renewable energy
created
 Toxic substances
eliminated
 Waste costs reduced or
eliminated
 Water quality enhanced
 Water use/cost reduced
 Other?
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ARRA Commercial Energy
Efficiency Grant
• 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
 Work with industry groups to target high energy
users
* Calculated on ACE’s Georgia Green Loans multiplier 53
Georgia Green Loans Advisory Council
• Guide the green loan program
• Provide expertise in green business development
• Bring connections to potential funders and individual
donors
• Assist in guiding the establishment of Georgia Green
Loans in the state of Georgia
• Leaders in the community and people with highly
respected skills in critical areas
• At least two members will be current clients of GGL
• 2 year term; meet quarterly
• Examples: Georgia Organics, Southface Energy
Institute, foundations
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Collaboration 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 area
• Recent approval by SBA to split non-served middle
Georgia counties
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ACE Self Greening Initiative
as of 2/17/2010
Weatherize
Video Conference
Recycle and Green
Policy
Goal:
Goal:
Goal:
•Reduce electrical costs
associated with
conditioning ACE office.
•Reduce travel costs and
Green House Emissions
•Recycle, Reduce, Reuse
through efficient workplace
behavior
Steps Taken:
•Discussed
technology/equipment
with James.
•Energy Audit has been
conducted.
•Bids taken for Insulation
and HVAC.
•Data capture
spreadsheets created to
capture effects and payoff
Status:
•Larry is discussing bids
with partner, awaiting
outcome
02/28/10
Steps Taken:
•Data capture
spreadsheets designed to
capture savings, payoff,
and emission reductions
Status:
•Waiting on Green light to
purchase equipment and
set up Skype at various
locations
Steps 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.
So, what are the next steps for my
organization?
#1 Develop Your Organizational
Sustainability Plan
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Effective practitioners model sound business
behaviors to their clients.
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Use the tools provided to develop your own plan.
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Start with practical, cost-effective steps and
build on it.
#2: Do your homework: What does the
green sector look like in your community?
2: Build your knowledge base &
seek out experts
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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
Green entrepreneurs in your community!
Step 3: Begin the Dialogue with Your
Clients
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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.
#4: Convene Gatherings
• Join 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.
#5: Start a Pilot Project
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Start your green initiative with a simple workshop for
your clients on “The Basics of Starting a Green
Business.”
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Invite local businesses and experts to lend their
perspective and provide advice.
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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.
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Talk with staff from green job training programs to
assess interest in a self-employment training for
contractors.
#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.
Resources
• Green Branding: Why Originality Matters by
Jerry Stifelman
http://www.treehugger.com/files/2008/06/green-brandingoriginality.php
• Naturally Successful Video:
http://www.arnoldcreekproductions.com/NaturallySuccessful.htm
• http://www.izzitgreen.com/
• Green Resource Took Kit
Upcoming Webinars
• Green Marketing and Messaging for
Microentrepreneurs
• Developing Collaborations to Support Green
Microenterprise Development
• Green Microfinance
• Organizational Development Implications for
Green Microenterprise
Thanks!
For Further Information:
Elizabeth Penney
Director of Community Outreach
Appalachian Community Enterprises
[email protected]
770-718-8992 (cell)
Jason Friedman, Principal
Friedman Associates
[email protected]
319-341-3556