Go for Green Entrepreneurship

Defining green entrepreneurship is not an easy task. The concept itself is relatively new and has been receiving attention since the 1990s. According to 'Entrepreneurship at a Glance 2011 © OECD, "A green entrepreneur can be either making her business “green” or simply entering a “green business”. In other words, green entrepreneurship could be defined in terms of the technology used for production in any sector of the economy, or in terms of the sectors firms are active in, in which case our attention is restricted to parts of the economy producing specific types of output. The former is sometimes referred to as a process approach in defining green business, while the latter as an output approach." 

"Today what we need to learn to do is optimize the use of energy and water. There are enormous opportunities in tightening up processes to transform the built environment, in particular through how we deal with energy. It is a massive undertaking, and it is going to touch nearly every aspect of our lives, but it is also going to be an incredible source of opportunity for entrepreneurial activity," emphasize Aashish V. Karode, Principal, Planning and Design Services, Design Atelier, New Delhi.

Sustainability is a balancing process and its objective is to find a balance between our current requirements and those of future generations; between economic, social and environmental impacts; between the needs of various communities and populations.

The goal of green entrepreneurship is to consciously address an environmental/social problem/requirement through the realization of entrepreneurial ideas (some or higher level of risk) which has a net positive effect on the natural environment and at the same time is financially sustainable. Green entrepreneur, thus, is someone who starts and operates an enterprise that is designed to be green in its products and processes from the very moment it is set up.

Green buildings are profitable, cost-effective and good for the economy

Buildings account for over 40 percent of global energy-related CO2 and if we need to meet the meet global carbon reduction goals, then according to a IPCC report, we must ensure a “rapid and far-reaching” sustainable transition in land, energy, buildings, transport and cities. Green buildings, certified by LEED, actually offer a global solution for cities, communities and neighborhoods. The sustainable design of these building are reducing carbon emissions, energy and waste; conserving water; prioritizing safer materials; and lowering our exposure to toxins.

As per World Green Building Trends SmartMarket Report in 2018, the people associated with the building and construction industry expect the majority of projects in the next three years to be green buildings. Creating spaces that support health and well-being, as well as the economy and environment will accelerate sustainable development and deliver a better standard of living.

In the U.S., clients now not only demands healthier buildings but at the same time look at the economic benefits. This behavior of clients trigger growth of green buildings. Operating cost savings, shorter payback periods and increased asset value in new green buildings and green retrofits have been consistently reported.

According to an article published in new.usgbc.org, upfront investment in green building also makes properties more valuable, with a growing number of building owners seeing a 10 percent or greater increase in asset value. The percentage of owners reporting that level of growth has nearly doubled since 2012. Other benefits of green buildings, as explained in this article are:

Green buildings reduce day-to-day costs year-over-year. LEED buildings have reported almost 20 percent lower maintenance costs than typical commercial buildings, and green building retrofits typically decrease operation costs by almost 10 percent in just one year.

Green buildings are for every market and every community. A report on the Los Angeles market indicated that while traditional (non-LEED certified) buildings receive an average of $2.16/ft2, tenants were willing to pay $2.91/ft2 for LEED certified space.

The University of Texas at Austin looked at resale value on homes in the Austin-Round Rock Metropolitan Statistical Area and found that homes built to LEED standards between 2008-2016 showed an eight percent boost in value, while homes built to a wider range of green standards saw a 6 percent increase in value.

To-date, green building has created millions of jobs and contributed hundreds of billions of dollars to the U.S. economy. From 2011-2014, national green construction generated $167.4 billion in GDP. In Texas alone, more than 720,000 jobs were attributable to green construction during that time. In 2014, LEED-related employment directly contributed $1.09 billion of individual income tax to states.