Ecopreneurist

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The Wall Street Journal published some interesting research on consumer purchasing behavior as regards ethically produced products. The study conducted by a doctoral student at Western Ontario University, studied the price consumers were willing to pay under various circumstances.

The researchers studied coffee and asked consumers to determine how much they would pay for ethically produced coffee; how much they would pay for coffee produced by an unethical company and then tested at what level a product is considered ethically produced. There were a variety of different permutations in the study but the results seem to be as follows:

Consumers, in general will pay more for ethically produced goods

Consumers, at the moment don’t care if it’s 100% ethically produced or 5% ethically produced…they’ll pay the same premium

Very aware consumers, as in aware of what ethically produced means and who care about it are willing to pay a bigger premium for ethically produced goods.

Some consumers will still by products even if they are unethically produced…if the price is right!
In general I didn’t find much of this surprising except that consumers didn’t really seem to be wiling to pay a higher price for MORE ethically produced goods. Though, on second though, this isn’t all that surprising since our Byzantine labeling system makes it hard to understand what producing ethically means in the first place.

Bad news in the short run for social entrepreneurs who place a priority on doing good, as opposed to doing well (making money) but, in the long run, the general public will become better informed and highly ethical goods will be able to demand a premium.

Related Posts:

Survey Says: Consumers Will Pay More For Green Products

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Hippocratic Oath for Green Business Leaders - Beyond Ghettoized MBA Curriculums

Natural Marketing Institute, Nielsen Value LOHAS Mart At $209 bn

Desperately Seeking Certification – Is It Worth It For Eco-Entrepreneurs?

Image Credit: kkoshy at Flickr under Creative Commons License

Fast money and fast movers. These are the phrases that come to mind when entrepreneurs talk about venture capital as a potential source of funding. But what if the flow of funds slowed down…way down?

The Next Generation of Sustainable Capital

The Investors’ Circle spring conference attempted to answer that question during a lively breakout session entitled “Slow Money: New Strategies for Investing in Local Food Systems.” Attended by reps from next generation investors such as SJF Ventures, Transformative Capital, and Renewal Partners, the conference blended a business pitch competition, philosophical discussions, an entrepreneur showcase, and community education in an effort to jump start the transition to a sustainable economy. Ecopreneurist writers were out in full force at the conference, with Leah Edwards blogging the “Is Organic the Next Clean Tech?” breakout session and joining in the networking events.

Slow Money: New Strategies for Investing in Local Food Systems

As part of the larger Slow Movement sweeping the cultures of food, travel, cities, and schools, Slow Money proponents seek investments and returns at the pace of sustainable business development. Slow Money panelist Greg Steltenpohl, former CEO of Odwalla and self-confessed “fast money sinner testifying before you,” advocated for the creation of new metaphors for economic growth. In the Slow Money movement, organic phrases replace academic terminology and new financial vehicles arise to form the “compost of the slow money economy.” Investors’ Circle chairman Woody Tasch expressed this transition as a study in contrasts between old and new ways of thinking: Read the rest of this entry »

This is the first of several posts describing “Strategies of Abundance” for ecopreneurs and green business owners.

Even in financially tough times, these Strategies of Abundance reflect interrelationships between personal finance and business, especially for small business owners. The key for ecopreneurs is how they use their business to make the world a better place. Profits from a green enterprise are the catalyst for ecopreneurs to achieve their Earth Mission, whether to restore ecological integrity or make photovoltaic systems affordable to all.

STRATEGY #1: Stop paying the banker.

The longer you hold a mortgage, the more you work for the bank and the more profitable you make them. For comparison, below is a chart from our book, ECOpreneuring, reflecting how interest can pile up on a $100,000 mortgage at 7 percent interest for terms of 15 and 30 years. While the monthly payment is less for the 30-year mortgage (the primary reason many of us choose it), we end up paying more than double for the use of the same pot of money.

By accelerating our mortgage payments on our 30-year fixed mortgage by paying down the principal when we could, we have the ability to earn less income to pay the bank than if we did otherwise over the long-term. Prepayment on principal is usually acceptable and completely legal. Every time you pay down the principal, the remaining interest and balance is recalculated, meaning that more of your regular monthly payments go to the principal and not interest payments.

Read the rest of this entry »

Though being green is all the rage in the US, one needs to look beyond our borders…well beyond, to find countries in which consumers act truly green. Not surprisingly, those consumers in the developing world, impacted the most by environmentally harmful behavior, tend to be the greenest.

The recently completed National Geographic/GlobeScan “Consumer Greendex,” rather than measuring the overall “greenness” of each nation looks specifically at consumer behavior and tells a different story than that of traditional measurements of sustainability by country.

The US, still doesn’t fare very well

The findings show that consumers in Brazil and India tie for the highest Greendex score for environmentally sustainable consumption at 60 points each. They are followed by consumers in China (56.1), Mexico (54.3), Hungary (53.2) and Russia (52.4). Among consumers in wealthy countries, those in Great Britain, Germany and Australia each have a Greendex score of 50.2, those in Spain register a score of 50.0 and Japanese respondents 49.1. U.S. consumers have the lowest Greendex score at 44.9. The other lowest-scoring consumers are Canadians with 48.5 and the French with 48.7.

Read the rest of this entry »

Before you can open your doors for business, you need an office. Stocking your office with needed supplies is a great opportunity to show your green side and make sustainable choices. From furnishings to paper clips, there are eco-friendly options out there for every office need.

Whether you’re working from home or from a downtown high-rise, you can conserve paper, reduce energy use, and produce less waste by keeping the environment in mind for all your office purchases. In this article, I’ll share ideas for stocking your green office and sources of green office products. Read the rest of this entry »

Sometimes it’s nice to communicate verbally for a change. I had that opportunity this week when I was a guest on PR 101 Radio - Marketing Advice for Small Business. Erika Taylor, from Three Girls Media conducted a great interview where i was able to discuss some of the pleasures and pitfalls of green marketing.

Check out my interview here and here:

I’ll be appearing on the show again on June 11th so stay tuned.

As an entrepreneur, you may at times question your sanity : long hours, uncertain outcomes, energy drain on the rest of your life. And yet you keep on going. You have to. The thrill of successfully launching a new endeavor, whether to make a living, a difference in the lives of people, an impact on the health of the planet, or all of the above is too great not to.

And yet, there may be times that nothing’s coming to you. You’re either stuck for a new idea, or having doubts about or missing pieces to what you’re currently working on. In steps Springwise. Springwise is hub for people to share ideas, and is smartly designed for rapid skimming, by category, keyword, and country.

Now, you may say, what’s new about this? There are lots of business and entrepreneurial blogs and publications out there. Fair enough. Amsterdam based Springwise puts it well when they say,

Springwise scans the globe for the most promising business ventures, ideas and concepts that are ready for regional or international adaptation, expansion, partnering, investments or cooperation. We ferociously track more than 400 global offline and online business resources, as well as taking to the streets of world cities, digital cameras at hand.

They also enlist the eyes and minds of an additional 8000 Springspotters in 70 countries to keep an on the ground perspective on what’s going on.

What does this look like? Read the rest of this entry »

At the Investors’ Circle Conference in San Francisco, the Plenary Session of the May 7th Education Day was titled, “Is Organic the Next Clean Tech?” Can organic foods (and other products) can attract major investment capital, in the way clean technology has in the past few years, to the tune of tens of billions of dollars.
I am not sure whether the answer is a resounding yes, but panelist Walter Robb, Co-President and COO of Whole Foods Market announced that Whole Foods will be investing in small supplier companies, and all of the panelists were positive about the potential of investing in organics.

Kristen Groos Richmond, Co-founder/CEO of Revolution Foods, who has a wonderful if improbable company, which I wrote about before, can speak first-hand about the ways entrepreneurs can attract professional investors while pursuing goals such as connecting local farmers and consumers. Read the rest of this entry »

I’ve been thinking a lot about the Food service Industry these days. A recent article in Environmental Leader noted that of all of the industries tracked by Climate Counts , an organization that produces a company scorecard , Food Service scored the lowest.

Overall the average company score increased from 30.6 in 2007 to 39.3 this year - a 22% increase. Twenty-three companies were ranked as “striding” (making progress toward change) vs. 18 last year. Ten companies are still ranked as “stuck” vs. 18 last year.

However, the Food Services sector had the lowest average (11.5 out of 100) of any of the eight sectors measured with smallest overall improvement.

Why is it so difficult for food service companies to go green?

Read the rest of this entry »

Both for profit and non-profit businesses are led by ecopreneurs who are making the world a better place through their creative, innovative and ground-breaking enterprises. Lisa’s and my book, ECOpreneuring, features numerous “Ecopreneur Profiles” — including David Anderson, the founder and CEO of GreenOptions.com — along with many other brief summaries.

But there are millions of ecopreneurial enterprises prospering throughout the U.S. and around the world. Perhaps you’re one, too.

So, we have formed a partnership with EcoSector.com, an on-line portal serving as a unique conduit for growing the green economy, offering opportunities to share video clips, feature photographs of products or services, and display blogs. Read the rest of this entry »