In this short talk we are going to consider the different types of green entrepreneurs and try and identify key characteristics or traits that they display. To begin with it is worth noting that there is an ongoing debate over the precise definition of an entrepreneur and this is before we add the ‘green’ element and the additional controversy about how green you need to be to deserve the title of green entrepreneur.
Let’s start with a basic definition of an entrepreneur that most commentators agree with which is that an entrepreneur is an individual who takes an idea, develops a business around it, manages the business, and assumes the risk for its success. Some experts have a wider definition that encompasses anyone who sets up a business while others have a narrower view point, suggesting that an entrepreneur’s business should involve innovation and leadership in the chosen field. It could be argued that adding the ‘green’ element makes it easier to satisfy all parties as the green economy itself where green entrepreneurs ply their trade relies of innovation and leadership to find new solutions to reduce the environmental impact of businesses.
First and foremost green entrepreneurs are individuals and as such trying to find or list common characteristics can be a futile exercise. However, there are some general characteristics that all green entrepreneurial activity has.
One thing that all green entrepreneurs have in common is that they undertake business ventures with an element of risk where the outcomes are unpredictable at best and the possibility of failure is an ever present. Like any entrepreneur they go through a process of ideation and evaluation of a new green business opportunity; pull together the necessary resources to turn the idea into reality; develop and implement a business plan to support its development; and if initially successful manage the new business venture to oversee its growth and sustainability.
A common characteristic that is specific to green entrepreneurs is that their business idea or endeavors have an overall positive impact on the natural environment and support a move towards a more sustainable society. This is not to suggest that all elements of a green entrepreneurs business have a neutral or positive impact on the environment. In fact, it is highly unlikely that any green entrepreneur’s business venture would be 100% green. There is always some element, somewhere in the business pipeline where waste is generated, pollution is caused or some environmentally unfriendly resource or service is used. However, green entrepreneurs do bring new products or services to the markets that have an overall positive environmental impact.
The personal belief system of green entrepreneurs usually sees protection of the natural environment and a desire to move toward a more sustainable development pathway as important goals yet this desire does not need to be paramount. Within the ranks of green entrepreneurs there are profound differences in the significance they place on this goal. While for some, these altruistic goals are more important than financial return or commercial viability for others it assumes an equal ranking with more traditional measures of commercial success and there is also a third group of green entrepreneurs for whom environmental outcomes are a secondary concern after business feasibility. This third group are frequently referred to as accidental green entrepreneurs in that their businesses operate in an environmentally friendly manner, but does so as an unanticipated byproduct of other business processes rather than because of a deliberate environmentally friendly focus.
Academics working to define green entrepreneurs broadly agree on 4 different categories beginning with the innovative opportunist type who is an entrepreneur focused on financial gain who spots a green niche or opportunity. This type of green entrepreneur is an individual who has been mainly influenced by structural drivers like regulation. Next up is what is known as the visionary champion type, a champion of sustainability who sets out to change the world, operates at the leading edge of eco-innovation and has a vision of a sustainable future the envisages significant structural change. The third type is known as the ethical maverick and the most significant influences for this type of entrepreneur are generally friends, networks of like-minded individuals or past experiences rather than visions of a changing world. Many ethical mavericks set up fringe or alternative-style businesses rather than mainstream type operations. The final category is the ad-hoc green entrepreneur and this type of green entrepreneur is driven primarily by financial motivations rather than by any specific environmental values or beliefs. The ad-hoc green entrepreneur is a kind of accidental green entrepreneur who has ended in a particular place due to the influence of personal networks, family and friends.
Intentional green entrepreneurs are capable of envisioning some new product or service and embracing the challenge of realising the potential that this new product or service might have. While green entrepreneurs are not seeking out loss making ideas they tend to judge success in term of a triple bottom line of people, profit and planet. Green entrepreneurs are problem solvers and are very resourceful. They are proactive and demonstrate considerable initiative and don’t generally accept or believe in limitations. They tend to be the ones who find a way when everyone else thinks they have reached a dead end. Green entrepreneurs know that change is essential to achieve sustainable development and they are constantly moving forward in the vanguard of innovation. Green entrepreneurs are often perceived as individuals with visionary capability able to see the extraordinary in the ordinary or the exciting in the mundane.
As with most things in life of any consequence being a green entrepreneur comes with a price. You don’t become a green entrepreneur overnight and many eventually successful green entrepreneurs have been through several ups and downs before they achieved their goals. Dedication to the task at hand and resilience in the face of failure are essential personality traits. Successful green entrepreneurs possess certain qualities that make them good at what they do.
- They have a strong belief in themselves and in their own ability, know what they are capable of achieving and are focused on achieving their goals.
- They are open-minded and dynamic individuals who are open to all types of ideas and are not afraid to make mistakes knowing that problems are inevitable in innovative settings.
- They welcome change and are always looking forward to the future rather than focusing on the past.
- While the vast majority of green entrepreneurs are not in business solely for the money they are nevertheless competitive individuals who work hard to attain the high standards they set for themselves.
- Green entrepreneurs can rarely be dissuaded and have a drive to succeed that helps them overcome pitfalls along the way.
- They are resourceful and creative and are constantly striving to find new ways to improve sustainability.
- Green entrepreneurs have great reservoirs of energy and motivation and are often individuals driven by a passionate belief in a better more equitable society.
- Above all green entrepreneurs are leaders and can influence others to bring about change and progress.
As a budding green entrepreneur the most important thing to remember is that the qualities outlined above are not innate qualities that some people are born with. On the contrary, the qualities listed above can be developed in any individual. There are numerous academic and business training courses that can help you build the entrepreneurial skills that matter but you can also go it alone by:
- starting a small business to develop your entrepreneurial understanding;
- read books and journals about business and entrepreneurship to build the broad knowledge base that is essential to successful entrepreneurship;
- attend business seminars and trainings where invaluable insights into the real world of business can be gained;
- volunteer in a field related to your green business idea to build knowledge and understanding from a consumer or user perspective;
- network with other green entrepreneurs or budding green entrepreneurs to develop skills, share ideas and strategies and identify you own strengths and weaknesses by comparing your skills to those of other like-minded individuals;
- find yourself a mentor who can help guide you through the business development process.
Bibliography #
Understanding the Green Entrepreneur https://people.ucsc.edu accessed on 3rd July 2017
Green entrepreneurship: the missing link towards a greener economy www.20.iadb.org accessed on 5th July 2017
Characteristics of sustainable entrepreneurship https://eprints.qut.edu.au accessed on 5th July 2017
Opportunist, Champion, Maverick – Typology of Green Entrepreneurs https://www.researchgate.net accessed on 5th July 2017
Alternative Paths to Green Entrepreneurship www.hbs.edu/faculty accessed on 3rd July 2017
