Volume: IV - Professional Panorama...Mansukhlal Raghavjibhai Prajapati (Clay Cooling): Mr. Prajapati...

Professional Panorama : An International Journal of Applied Management & Technology

Green Entrepreneurship: Strengthening Indian Economy by Innovating the Future 103

Volume: IV | Issue: II July-Dec. 2017

ISSN(P)2369-6919 ISSN(O)2454-8340

Green Entrepreneurship:

Strengthening Indian Economy by Innovating the Future

Ms. Asha Mamraj Sharma1

Abstract

Technological advancement and changes in social and economic conditions has led a major

shift in consumer’s tastes and preferences. Various studies carried over on consumer’s

preferences have eminently shown that individuals are now health and environment

conscious. It may be a key object that every company is trying to fill up the vacuum by

offering eco-friendly products and tend to adhere to green marketing practices. This

impression has ultimately developed a new breed-‘Green entrepreneurs’ who aim to hit this

untapped desire of consumers by offering green products and by adopting green strategy to

attract them. Since last decade the concept Green entrepreneurship is gradually escalating

and has caught world’s attention in a big way. In fact adapting eco-friendly business

practices can open up new array of opportunities for beginners, to outshine in

entrepreneurship world. To strengthen Indian economy, Green entrepreneurship is coming

up as a driving power by providing innovate green products to society at large. The basic

intention behind this study is to ascertain and scrutinize the opportunities available to green

entrepreneurs in India. The study deliberates the concept, basic characteristics and profile of

green entrepreneurs as well as the opportunities and challenges ahead them. The study is

based on available literature, various facts and information available on this issue. The study

concludes with that green entrepreneurship has opened enormous opportunity for beginners

who has identified and explored innovative ideas in serving the Indian society.

1Assistant Professor, Amity Business School, Amity University Rajasthan, Jaipur, email: [email protected]

mailto:[email protected]



Introduction

s planet Earth is our home, it is our responsibility to manage the home we live in.

It is well identified fact that environmental issues such as “global warming” are

threatening the ecosystem and our existence. In recent times the businesses

around the world are witnessing things that are varying like never before due to

technological advancement, change in economy and political influences. De Facto, because

of advancement in technology and changes in standards of living conditions of consumers

there has been a major shift tastes and preferences also. Various studies carried over on

consumer’s preferences have eminently shown that individuals are now health and

environment conscious. It may be a key object that every company is trying to fill up the

vacuum by offering eco-friendly products and tend to adhere to green marketing practices.

This impression has ultimately developed a new breed- ‘Green entrepreneurs’ who aim to

hit this untapped desire of consumers by offering eco-friendly products and by adopting

green strategy to attract them. Since last decade the concept Green entrepreneurship is

gradually escalating and has caught world’s attention in a big way. As it may be the reason,

that slowly and steadily the concept of green product and green marketing are taking

place in the market. It can be also a prospect for those companies, who believe in

innovation and redesigning their products and services in ecological manner. This may be

an ideal time for those entrepreneurs who want grab the opportunities of this developing

green market because of following two major reasons:

Firstly, the environmental market is growing at a rapid speed. Every entrepreneur,

business manager and investor who has had even a brief glance recognizes the market’s

potential.

Secondly, they will lead towards building a better world for the current as well as future

generation.

Concept of Green Entrepreneurs

For the very first time, Terry Clark of Goizueta Business School, Emory University devised

the term ‘green entrepreneurs’. The term green entrepreneurs are a mixture of two words

i.e. environment and entrepreneurship. But it was Bennett (1991), Berle (1991) and Blue

(1990) who first espoused the concept ‘environmental entrepreneur’, ‘green

entrepreneur’, ‘eco-entrepreneur’ and ‘eco preneur’ in their studies. There is a common

consensus that entrepreneurs are generally driven by a special motivation and acts on a

valuable opportunity (Miller 2003). Green entrepreneurs are the ones who make use of

opportunities and initiates business for sustainable development which helps in structure

A



transforming, are socially devoted and technologically advanced usually based on eco-

friendly process and environmental product (Walley & Taylor, 2002). In short, green

entrepreneurship is a business model that helps to addresses the problem of society as

well as ensures healthy environmental condition by innovating products and services

accordingly. The basic goal of these entrepreneurs is to earn profit by guarding and

improving environmental condition thereby providing to society something novel and

eco-friendly.

Based on basic definitions given by authors following are the basic characteristics

extracted about green entrepreneurs:

They commence new risky business ventures wherein the outcome of the business is

uncertain.

They are inherently motivated. Their aim behind running a business undertaking is

not just earning profit but also serving the society.

They consciously aim at covering those economic activities that will have an overall

positive effect on the natural environment and on economic sustainability and a better

future.

They face enormous challenges such as commitment from the public sector, suppliers

and consumers.

The basic intention behind this study is to ascertain and scrutinize the opportunities

available to green entrepreneurs in India. The study deliberates the concept, basic

characteristics and profile of green entrepreneurs as well as the opportunities and

challenges ahead them. The study is based on available literature, various facts and

information available on this issue. It focuses on how emerging green markets is an

opportunity for green entrepreneur and sustainable development in India. The paper is

divided into various parts such as theoretical background of green entrepreneurship,

research objectives, and development of the conceptual model, findings;

recommendations and conclusion. Context of successful Indian cases have also been

deliberated to understand the prospects of aforesaid business.

Research Questions

What are the factors that encourage Green Entrepreneurs in India?

What are the innovative solutions available to further motivate successful

entrepreneurs in India?



Research Objectives

To identify the factors to encourage green entrepreneurs in India

To examine the strategies of the Green entrepreneurs beneficial to sustain its business

in India

To propose the innovative solutions in pursuance of creating successful Green

entrepreneur.

Methodology

The studyis based on exploratory research and it is conceptual in nature. The study has

been undertaken on the basis of extensive literature review. Context of successful Indian

cases have also been deliberated to have an elaborate view about the scope of green

entrepreneurs.

Brief Profile of Green Entrepreneurs in India

An entrepreneur always focuses on generating novel ideas and bringing change in the

society. It is a very noble work to secure society and humanity by protecting & preserving

environment. This entire task is undertaken by good entrepreneur as evenhe is

responsible for societal welfare. Many entrepreneurs have changed the concept of

businesses in their own way and provided solution for various problems prevailing in the

society. Below are few cited examples to motivate upcoming green entrepreneurs-

1. Rajaram Tripathi (Organic Herbal Farming): Mr. Tripathi realized that the key

reason behind farmers mounting debts was wasteful expenditure on pesticides and

fertilizers. He ventured Maa Danteshwari Herbal Products, in Kondagaon district in

Chhattisgarh which uses organic fertilizers made of farm waste which included cow

dung and leaves. His farms also use bio-waste generated power. His venture which

provides livelihood to approximately 200 tribal families takes help of Central Herbal

Agro Marketing Federation of India to market its produce. They have established an

herbal food supplement production unit which has an annual turnover of Rs. 20 crore.

2. Damji Prajapati (Eco-friendly Bird Houses): It’s almost a decade wherein Mr.

Prajapati is building earthen birdhouses in Ahmedabad to inspire people to safeguard

the natural habitat of birds. Prajapati's birdhouses are textured in the form of a tree

trunk. Now, he is even receiving orders from real estate developers who plan to

include it in their design schemes. Many of his birdhouses, which cost upwards of Rs

250, are designed to be attached to a tree, building or pole.



3. Mini Varkey Shibu (Natural Khadi): Ms. Mini runs MNIC retail store in Bangalore

along with her husband. The basic intention behind running this kind of business by

her was to initiate young users to eco-friendly clothing and the value of our rich

heritage in fabric. All the fabric used in Mini's store is organic and sourced from tribal

of Dharmapuri district in Tamil Nadu. Chemical fertilizers are a strict no-no. The

cotton is hand-spun under specific instructions. Mini mainly uses vegetable dyes and

optsammonia-free colours as a USP of her business.

4. Anupam Jalote (Wealth from waste): His start-up produces organic manure and it is

being sold on a small scale under the brand name of Green Oil Karishma, Delhi. The

company is in the course of building a power plant of 1 MW which will then be

connected to the National Grid-in Samode village, near Jaipur. It would be a gobar gas

plant that would use waste to produce bio-methane through anaerobic digestion.

Cattle and elephant dung, rotten fruits and vegetables, and other organic farming

waste would be utilized to produce electricity. The company also plans to sell the by-

product, organic manure.

5. Pallavi & Prachi Agarwal (Toy Story): The sisters make interactive toys for children

of all age groups under Chalks and chuckles, Delhi. All their toys are made up of

cardboard and plastic usage is totally abandoned. All ink used in the games is soya

bean-based and the paints are water soluble which means no turpentine is used to

thin them.

6. T.S. Shankker (Biotec Bags): In 2010, Mr. Shankker started his venture with Rs

1crore investment by setting up Biotec Bags along with friends to make biodegradable

plastic bags. Biotec bags, which cost Rs. 200 per kg, are coated with a food-grade

enzyme that makes the bag decay about 90 per cent in 180 days.

7. Uravu, Wayanad (Eco Friendly Homes): Uravu focuses on making houses and

handicrafts out of bamboo in Kerela. His company uses bamboo for construction

although it involves wastage of 30 per cent but reduces the need for cement by 50 per

cent, sand by 20 % and steel by 90%. This helps reduce ecological degradation.

8. Shrey and Sudeep (Eco friendly resort): The Tree house resort run in Jaipur by the

aforesaid siblings launched Taruveda, an aviary eco spa at The Tree House Resort. The

resort is now home to 250 species of birds. An increase in groundwater from 250 ft. to

400 ft. has been resulted from rain water harvesting undertaken at the Resort in in

just seven years. Workers are hired from nearby local villages if they promise to not to



fell trees or use wood for fuel. On account of using organic products the appeal of the

green resort has increased immensely.

9. Mansukhlal Raghavjibhai Prajapati (Clay Cooling): Mr. Prajapati launched Mitti

Cool fridge, a clay refrigerator for the common man in 2002. It runs without electricity,

keeps perishables fresh for seven days, water cold and milk and curd fresh for almost

24 hours. Currently he is working on Mitti Cool House', a house that will keep itself

cool without consuming any extra energy.

10. Preethi Sukumaran and Srinivas Krishnaswamy (Green Wash): The Chennai-

based duowas always eco-conscious. They started their own company, Krya Consumer

Products, in 2011, which manufactures household products with natural ingredients

that are high on the green quotient. Their first product was the Krya natural detergent

powder that saves 25 litres of water per wash as compared to chemical detergents

Challenges for Green Entrepreneurs

A business can endure if it has support from all stakeholders such as government giving

tax benefits, suppliers focusing on supplying environmental friendly materials and

customers buying green products. The biggest challenge for green entrepreneurs is

customer value creation through innovative products and cost control. Along with this

customer education on environment cleanliness is another task.

Nevertheless green entrepreneurs face challenges like lack of substitution of the

traditional merchandise, cost control, redesigning, stuff and lack of R&D infrastructure etc.

These challenges can be reduced if proper support is received from all stakeholders

affecting business decision of any concern.

Indian Market Scenario for Entrepreneurs

To provide soft loan for establishment of a Micro, Small and Medium Enterprise (MSME)

as also for pursuing opportunities for growth for existing MSMEs, the Union Finance

Minister (2015-16) launched two funds by Small Industries Development Bank of India

(SIDBI), a fund of funds with total corpus of Rs. 12,000 crore, reports media.

The funds are Rs. 2,000-crore India Aspiration Fund (IAF) and SIDBI Make in India Loan

for Enterprises (SMILE) scheme with an investment size of Rs. 10,000 crore. The India

Aspiration Fund is a fund of funds that would invest in venture capital funds for meeting

the equity requirement of MSME start-ups. Life Insurance Corp. of India (LIC) will be a

partner and co-investor in the fund.



The second fund is a debt fund called SIDBI Make in India Loan for Enterprises (SMILE),

which was announced in the Union budget in February. The fund will provide soft term

loans and loans in the nature of quasi-equity to MSMEs to meet debt-to-equity norms and

pursue growth opportunities in existing MSMEs. The Rs 10,000-crore SMILE scheme,

which has built-in higher concessional terms for the enterprises promoted by scheduled

caste (SC)/Scheduled tribes persons with Disabilities (PwD) and women, is expected to

benefit around 13,000 enterprises with employment of nearly 2 lakh persons.

SIDBI will be providing 15 percent of the total corpus which will be mobilized by the start-

ups through various resources under IAF or fund of funds.2

Supporting &Developmental Organizations in India for entrepreneurship: The

Government has setup various organizations which specialize in industry promotion &

entrepreneurship development in different sectors. The organizations provide policy

framework support, in addition to training & financial aid. Khadi & Village Industries

Commission, COIR Board Small Industries Development Bank of India, National

Manufacturing Competitiveness Council, National Skill Development Corporation, Even

Individual states across India have setup specially focused organizations which work

towards the development & support of small scale industries. These organizations run

specific promotional schemes in addition to providing financial support to industries.

Government of India has also set up various organizations that are at the forefront in

providing support and training for the budding entrepreneurs. Few of them are: Central

Footwear Training Institute - Agra Indo-German Tool Room - Ahmedabad Indo-German

Tool Room -Aurangabad Central Institute of Tool Design - Hyderabad Central Tool Room -

Ludhiana Indo-German Tool Room - Indore Central Tool Room & Training Center -

Bhubaneswar Circle Telecom Training Center - Kolkata Indo-Danish Tool Room -

Jamshedpur Institute for Design of Electrical Measuring Instruments Electronics Service &

Training Center - Ramnagar Fragrance &Flavor Development Center – Kannuaj. There are

a variety of associations which help & encourage the cause of industry. These associations

provide support & strength to the entrepreneurs & the organizations they setup.

Additionally, industry association networks are crucial in steering government policy &

action as well. Complete list of Industry Associations National Bank for Agriculture &

Rural Development (NABARD) Laghu Udyog Bharati (LUB) Federation of Indian Chambers

of Commerce and Industry (FICCI) Confederation of Indian Industry (CII) The Associated

Chambers of Commerce and Industry of India (ASSOCHAM) Federation of Indian Micro

and Small & Medium Enterprises (FISME) World Association for Small and Medium

2DNA, Aug 2015

http://www.dnaindia.com/money/report-finance-minister-arun-jaitley-launches-two-funds-by-sidbi-2115860



Enterprises (WASME) India Trade Promotion Organization (ITPO) Technology Innovation

Management and Entrepreneurship Information Service Asian and Pacific Centre for

Transfer of Technology (APCTT)3

Conceptual Model: On the basis of the study of literature and identification of various

factors the following conceptual model has been proposed

Fig 1. Conceptual Model for Green Entrepreneurship for Sustainable development

3Fostering Entrepreneurs-Supporting Organizations

Business idea related to

environmental concern

Opportunities for Green Market

Existence of

needed resources

for

Implementation

Green Entrepreneurship

for Sustainable

development

Yes

Yes

Yes

No

No

No

http://www.archive.india.gov.in/business/enterprises/support_org.php



Findings

Based on the literature survey and conceptual model the following are major findings of

the study:

1. There are optimistic opportunities for the green entrepreneurs as the green market is

expanding and consumer behavior is favorable towards green market in India.

2. India is going to be one of the best destinations in the world for the investment point

of view.

3. The study found that there is a conceptual link among environmental concern,

emerging green market, green entrepreneurs and sustainable development.

4. Due to increasing environmental awareness and education consumers are becoming

more responsive towards the environment. These factors will augment the changing

consumer behavior towards green product or eco-friendly product.

5. Green market is an emerging market, which brings ample of opportunities in every

field such as greening supply chain management, green production, green design etc.

Recommendations or Green Business Ideas for Entrepreneurs

1. Green Food: Growing food by creating small tray potted plants to fit within a balcony,

in order to enable people to grow their own food or creating true eco-friendly gardens

on rooftops to supply entire communities is a marketable and scalable idea with a

good application. Worm farming and organic compost sales are other green

gardening business ideas

2. Green Heating: Solar water heating systems can be installed in any building in

order to provide up to 70% hot water when properly installed to a family. When

integrated with the building, solar water heating systems can also be used to heat the

house and keep it warm, especially during those cold winter nights

3. Green Cleaning: Using eco-friendly detergents can yet b another good idea to

safeguard environment.

4. Green Consultant: This kind of job involves generating a method by examining their

client’s energy, desires and analyzing their strengths and weaknesses For example, is a

home or business using the correct amount of energy? If they are not, you could adjust

their energy needs or find a way for them to generate their own power at cheaper

rates than what they get from their electrical utility, and help them becoming greener.



5. Green Transportation: Replacing ones car for a more eco-friendly solution is a great

way to go green and for reducing their carbon-footprint. Electric and gas scooters and

electric bikes are going to increase in popularity. Many firms like Daymak Canada,

have a good range of green vehicles inclusive of mopeds, scooters and electric bikes.

6. Green Building: Even if you are not in the construction market, you can participate in

this business with green products like water-saving toilets, rooftop solar panels, or

even after-installation servicing.

7. Green Fashion: You can use organic cotton, reused fabric scraps and even plastic

bottles to start a green fashion line. You can create silk screen artwork for eco-

friendly T-shirts, or designer handbags and accessories made of recycled materials. Be

creative and design your own line of eco-friendly clothes.

Conclusion

On the basis of paper it can be concluded that Green entrepreneurship has opened

enormous opportunity for beginners who has identified and explored innovative ideas in

serving the Indian society. Change in Consumer buying pattern on the basis of eco-friendly

or green product there is a space creation for the green entrepreneurship. Green

Entrepreneurs are a composition of Innovation, Technology,Sustainability and

Environment. They can make profit as well as social recoginiion in the soceity. The success

stories from India highlight the viability of Green entrepreneurship as a business model.

However, the models have their own set of opportunities and challenges.

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Volume: IV - Professional Panorama...Mansukhlal Raghavjibhai Prajapati (Clay Cooling): Mr. Prajapati...

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