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Keynote. “Entrepreneurship as if the Planet Mattered”, First Indonesian Conference on Innovation, Entrepreneurship and Small Business”, Center for Innovation, Entrepreneurship and Leadership, Institute of Technology, Bandung (ITB), West Java, Indonesia July 22-23, 2009, http://www.ciel-sbm-itb.com/icies/
Citation preview
Entrepreneurs are burning Earth:
Thoughts on the new entrepreneurial ecology
Howard FrederickProfessor of Innovation & Entrepreneurship,
Unitec New Zealand, Auckland
Melbourne: Cengage Learning, 2010
Part 1 The environment for entrepreneurship in the Asia Pacific
• Chapter 1 Entrepreneurship: Evolution and revolution • Chapter 2 The entrepreneurial mind-set • Chapter 3 The environment, the economy and
entrepreneurship • Chapter 4 Ethical, environmental and social
entrepreneurship Part 2 Initiating entrepreneurial ventures
• Chapter 5 Innovation: The creative pursuit of ideas • Chapter 6 Pathways to entrepreneurial ventures • Chapter 7 Legal and regulatory challenges for
entrepreneurial ventures • Chapter 8 Sources of capital for entrepreneurial
ventures Part 3 Developing the entrepreneurial plan
• Chapter 9 Assessment and commercialisation of entrepreneurial opportunities
• Chapter 10 Marketing challenges for entrepreneurial ventures
• Chapter 11 Measuring performance for entrepreneurial ventures
• Chapter 12 Developing a sustainable business plan Part 4 Growth strategies for entrepreneurial ventures
• Chapter 13 Strategic entrepreneurial growth • Chapter 14 Global opportunities for entrepreneurs • Chapter 15 Entrepreneurial families, succession and
continuity • Chapter 16 Developing entrepreneurship within
organisations
How do you say entrepreneur in Bahasa Indonesia?
Video available on book’s website
www.learnpreneurship.com
Entrepreneurs are burning Indonesia
Human-induced climate change Entrepreneurs
have exploited the environment with impunity, without any thought of sustainability
Entrepreneurs contribute to the planetary crisis
Entrepreneurial ecocide
The trouble with palm oil
The true price of Fiji Water
Mitigation versus adaptation Mitigation
means managing the risks
Adaptation means adapting to changes
Entrepreneurs never waste a good crisis!
Entrepreneurs can be saviours of the planet
Schumpeter• Recessions clean the slate
through creative destruction Schramm
• Entrepreneurs benefit from recessions: (1) explosion of creative impulse, (2) scarcity of options, (3) lower operating costs, and (4) severely hit large corporations.
Innovations developed during recessons• Flourescent bulb• McDonalds• Microsoft OS• Apple PowerBook• Ipod
Pachauri of IPCC• ‘Entrepreneurs who respond
to the challenge will reap commercial success – while businesses which fail to do so face oblivion’.
An ecopreneur combines the drive and imagination of the entrepreneur with the stewardship of a conservator.
Elkington and Burke (The Green Capitalists, 1989): • Business can adjust its behaviour and consumers can make
environmentally friendly purchase decisions. Bennett (Ecopreneuring, 1991)
• Opportunities waste recycling, reducing air pollution, ‘atmospheric businesses’, fuel for the planet, waterworks, safe foods, enviro-investment, and education on environment.
Berle (The Green Entrepreneur, 1991) and Blue (1991) • began to use terms like ‘environmental entrepreneur’, ‘green
entrepreneur’, ‘eco-entrepreneur’, and ‘ecopreneur’.
Ecopreneurs
Examples of ecopreneurs (Hard) responding to market signals
and government regulation• (Commercial) ‘Innovative
Opportunist’ sees regulations as a market niche
• (Social) ‘Visionary Champion’ wants to change the world
(Soft) responding to people and personal networks• (Commercial) ‘Ad hoc enviropreneur’
comes to the green movement more by chance.
• (Social) ‘Ethical Maverick’ is influenced by friends, personal networks and past experiences
“an unusual person who has different ideas and ways of behaving from other people, and is often very successful”
“not planned, but arranged or done only when necessary”
Increasing demandDemand for resources and eco-system services
Declining supplyResources and ecosystem services
Sustainable supply
Sustainable demand
How to travel through the ‘funnel’
Sustainable future
Margin for action is narrowing
The present The future
Industrial entrepreneurship 1800-2000• Did not consider environment in planning and design. • Focused on extraction of resources • Did not prevent negative effects• Entrepreneurs had a negative impact on the environment and
society.
Sustainable entrepreneurship from 2000+• Focus on biosphere and limiting waste embodied in products. • Take into account the living dimension of the products and
services that we produce. • Create net positive entrepreneurial impact loops
Principles of ‘entrepreneurial ecology’
The study of the interactions of living organisms (including businesses) with each other and with their environment.
Sum of all living matter on Earth
Every product after its useful life will be waste
A proportion of an entrepreneur’s product or service is returned (looped back) to nature. It can have positive or negative impacts.
Doing something with the long term in mind
Biosphere
SociosphereEconosphere
Biosphere
Sociosphere
Econosphere
• Physical environment• Climate & energy• Water, soil, flora & fauna• Atmosphere & topography
• Human enterprise• Government & infrastructure• Knowledge, labour & capital• Opportunity and value
• Business environment• Entrepreneurial factor
conditions• Efficiency enhancers• Entrepreneurs operate here
(+)
Unsustainableentrepre-neurship
(-)
Sustainableentrepre-neurship
Entrepreneurship’s positive and negative impacts on biosphere
Biosphere
SociosphereEconosphere
Biosphere
Sociosphere
Econosphere
• Physical environment• Climate & energy• Water, soil, flora & fauna• Atmosphere & topography
• Human enterprise• Government & infrastructure• Knowledge, labour & capital• Opportunity and value
• Business environment• Entrepreneurial factor
conditions• Efficiency enhancers• Entrepreneurs operate here
(+)
Unsustainableentrepre-neurship
(-)
Sustainableentrepre-neurship
Entrepreneurship’s positive and negative impacts on biosphere
We might see these concepts in an equation:SE = f (B + S + E)
The elements are arranged in order of historical sequence. If we use ‘ ’ to mean embedded in or a subset of, we get∈SE = (E S B)∈ ∈
Negative entrepreneurship
Entrepreneurs undervalue biodiversity, energy, water, and materials.
Rather than adding value to living materials we only aim to reduce (e.g. through recycling) the quantity of dead resources.
In the end, society penalises entrepreneurs through regulation.
Positive entrepreneurship • Generates positive value-
adding impacts • Eliminate designed waste,
duplication, disposability, planned obsolescence and wasteful end purposes.
• Positive entrepreneurs create net positive-impact loop systems and innovations that create levers for biophysical improvements and social transformation.
A framework provides a blueprint that converts abstraction into order, allows prioritisation of valuables or issues, and helps identify relationships.
Frameworks for an entrepreneurial ecology
The field of sustainable entrepreneurship is only just beginning.
Some outstanding candidate frameworks that are beginning to emerge.
Natural capitalism Cradle-to-cradle design Economic gardening The Natural Step Industrial metabolism Natural advantage of nations Lean manufacturing and the seven wastes Ecology of commerce
Frameworks for an entrepreneurial ecology
The ‘economy’ is part of the larger economy of resources and ecosystems
Four central strategies• More effective manufacturing processes; • Reuse of materials with closed loops and zero
waste; • A change in values from quantity to quality• Investing in natural capital, or restoring and
sustaining natural resources’.
Natural capitalism
buaian bayi buaian bayi NOT buaian bayi kuburan
A world without waste in which all materials are continuously recycled.
In the natural system there is no waste and the same materials have been recycled for billions of years.
Materials are conceived as nutrients and designed to circulate safely and productively.
Cradle to Cradle
Economy is ‘processes that convert raw materials and energy, plus labour, into finished products and wastes’
Create eco-interdependent businesses that create a permanent waste exchange system
By-product of one company becomes the raw material for another.
Industrial metabolism
Entrepreneurs can help save the planet Innovation accompanies failure We are engaged in a great climate war and an
economic calamity Our species has caused the mass extinction of
thousands of species. Opportunities are inherent even in times of crisis,
market failure, and environmental decline. Sustainable entrepreneurship takes into account the
living dimension of the products and services. Entrepreneurs must seek net positive entrepreneurial
impact loops with the biosphere.
Conclusions