Balancing Climate Change Mitigation with Business Opportunity Green Entrepreneurship - Business Opportunities in the Green Economy
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1 Green Entrepreneurship - Business Opportunities in the Green Economy Prof. Dr. Dirk Ludewig Dr. Werner Jackstädt-Zentrum für Unternehmertum und Mittelstand Flensburg
2 Green Entrepreneurship Center (Interreg 5a - SPICE-Project) Research: Publications, PhD-Theses and research studies Motivation: Encounters, newsletters and idea contests Qualification: MINT-Green Entrepreneurship and crossborder labs Support: Office, coaching and contacts to financing Networking: International Green Entrepreneuship Forum and network catalogue Contact for politics and economy Partner approach (e.g. CLEAN, EKSH and StartUp 4 Climate)
3 Sustainability The resource and environmental challenge is the largest challenge of our generation (Hall 2012) Today humanity uses the equivalent of 1.5 planetsto provide the resources we use and to absorb our waste. (Global Footprint Network 2015) According to UN scenarios, by the 2030s we will need the equivalent of two earths to support us. (Global Footprint Network 2015) Main influence - Economic growth and population increase (BMUB 2014) Results: Energy and resource shortages and price rises / Climate change / Biodiversity loss / Petrodictatorship (Friedman 2009)
4 Green Economy - Two Approaches Process approach ( greening of the economy ): Green economy as an economy that results in improved human well-being and social equity, while significantly reducing environmental risks and ecological scarcities. -Characteristics: Low carbon, resource efficient and socially inclusive (UNEP 2015) Output approach -Green economy lead markets ( green business ) (summarized in Ludewig 2015): Renewable energy / Energy storage Waste management / Recycling Energy efficiency Sustainable water management Resource and material efficiency Sustainable mobility (Further green products) (Further green services)
5 Green Economy - Size and Growth Figures Global lead markets(bmub 2014) (Size in billion in 2013 / Size in billion in 2025 / CAGR ) 6.5% 4.3% 5.7% 7.4% 8.1% 9.6% 4.4% Total Energy efficiency Sustainable water management Renewable energy / Energy storage Resource and material efficiency Sustainable mobility Waste management / Recycling GDP share of green economy relative to entire economy - Global 3% / Germany 13% Germany: 14% global green economy market share / Global GDP share 5%
6 Green Entrepreneurship - Approaches Process approach: Entrepreneurs or start-ups that make their industry greener (e.g. by using efficient technology in any industry) (OECD 2011) Output approach: Entrepreneurs or start-ups that are active in specific sectors (of the green economy) and produce specific types of output ( entering a green business ) (OECD 2011) Combination: Entrepreneurs and start-ups that contribute with their products, technologies and services by business mission to the goals of the green economy (Weiß/Fichter 2013) Green Intrapreneurship/Eco-Innovation: Green entrepreneurial activity and innovation in existing companies (OECD 2013)
7 Green Entrepreneurship - Sustainability Neccessity and Business Opportunity Sustainability necessity: our only chance to cope with this [resource and environmental] challenge is to use the power of capitalism. (Hall 2012) High importance of green start-ups for transformation to green economy due to dynamic, flexibility and innovation power (BMBF 2014; BMUB 2014) 2/3 of radical innovations in the field of environmentally friendly product and service innovations are start-up driven (Borderstep Institute 2012) Business opportunity: At the same time it is the world s largest business opportunity. (Hall 2012) 14% of German start-ups ( ) are green (Borderstep Institute 2014)
8 Green Entrepreneurship - Green Start-ups in Germany German green start-ups in lead markets(borderstep 2014) (Number of start-ups- Total Multiple categories) Climate protection Renewable energy Energy efficiency Emission prevention Recycling economy Resource efficiency Renewable resources Biodiversity
9 Green Entrepreneurship - Specific Challenges for Green Start-ups Only limited information about the field of green entrepreneurship/economy Incompatibility of green and entrepreneurship (inner conflict / mission driven) Technology specific hurdles (high importance and costs of R&D / long R&D time) Instability of political framework, legislation and norms Lock-in effects of old non-green solutions Instability of public opinion and thus concrete demand Lack of specific support programs Lack of financing/investment (e.g. by misfit of investors and entrepreneurs) (summarized in Ludewig 2015)
10 Literature BMBF - Bundesministerium für Bildung und Forschung (2014): Forschungsagenda Green Economy BMUB -Bundesministerium für Umwelt, Naturschutz, Bau und Reaktorsicherheit (2014): GreenTechmadein Germany Umwelttechnologieatlas für Deutschland Borderstep Institut (2012): Booklet. Start-ups: Product Pioneers for a Green Economy BorderstepInstitut (2014): Booklet. Green Economy Gründungsmonitor 2014: Grüne Wirtschaft als Gründungs- und Beschäftigungsmotor Friedman, T. L. (2009): Hot, Flat, and Crowded-Whythe World Needs a Green Revolution -AndHowWeCan Renew our Global Future, 2nd Release Global Footprint Network (2015): Homepage - Footprint der Welt Hall, C. (2012): Miljökapitalisterna - Hur svenska entreprenörer tjänar miljarder på att rädda vår planet Ludewig, D. (2015): Green Entrepreneurship -Einordnung in die Green Economy und Bestandsaufnahme des Themenfeldes, Flensburger Hefte zu Unternehmertum und Mittelstand -Heft Nr. 6 OECD -Organisation foreconomicco-operation anddevelopment (2011): Measuring Green Entrepreneurship, in: Entrepreneurship at a Glance, OECD Publishing OECD - Organisation for Economic Co-operation and Development (2013): Working Party on SMEs and Entrepreneurship (WPSMEE) - Green Entrepreneurship, Eco-Innovation and SMEs UNEP - United Nations Environment Programme (2015): Homepageseite - Green Economy Weiß, R. / Fichter, K. (2013): Green Economy Gründungsmonitor - Konzeptstudie und Piloterhebung
11 Contact Prof. Dr. Dirk Ludewig Phone: 0461/ Jackstädt-Entrepreneurship-Center (JEC)
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