Ecopreneurist

Green Crystal Ball It’s safe to say most people would be hard pressed to remember such a grim economic time as we’re experiencing.  Businesses of all kinds are suffering, and many businesses are cutting back spending on sustainability efforts.

So, the question of the day is, what does the green tinted crystal ball say?  The answer is, of course, it depends.

Some businesses will continue to thrive.  Consumer confidence has plummeted, and even those that don’t need to cut back are reigning in spending on discretionary items.

As with anything, there are two sides of that coin.  For consignment stores, it’s a bonanza, as consumers look at second-hand goods as a way to continue to fulfill their needs while cutting spending substantially.  Those ecopreneurs who decided they wanted to make money by recycling used clothing, sporting goods, printer cartridges, or any number of other goods, the weather is warm and sunny, and the gods of industry are smiling upon them.

There is also tremendous opportunity created by economic downturns.  There are a variety of reasons for this:

1.A tremendous labor pool supply.  With unemployment reaching towards 9%, there are a great deal of educated, talented, and sometimes desperate workers out there looking for work, with a growing number of them looking for work that has a greater purpose. 

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2. Perhaps the rosiest outlook of any economic sector.  The UN estimates that 12 million jobs will be created in the next 2 decades in biofuels.  Alternative energy in terms of solar, wind, geothermal, and others is expected to be a high growth industry regardless of the economic climate.  UN Secretary General Ban Ki Moon heralds UN economists’ call for a “Green New Deal”, and has called on Barack Obama and others to fund a green job machine.

3. Increasing support from governments worldwide.  President-elect Obama’s vision for a green collar economy and the creation of jobs in the energy efficiency, alternative energy, and green building sectors is just one of many such programs worldwide.  Many states and cities have also launched green initiatives tied to increased employment in the green sector. Venture capital may be tighter than it used to be, but green VC continues to charge ahead.  It is estimated that green VC in China grew from $170 M in 2005 to $720 M in 2008.  And that’s just part of the global picture.

4. Saving water, energy, packaging and raw materials is still cost-effective, eco-friendly, and is now a more pressing need than ever for many businesses.  This creates opportunity in small scale consulting, or in the manufacture and sale of efficient goods.  There are likely no job cuts at factories producing compact fluorescent bulbs.  If you can save people money these days without affecting their product or business operations in other ways, you’re more likely to have their ear now than ever before.

Of course there are negatives.  With large companies cutting back spending on sustainability programs and efforts, the opportunity for companies in this industry such as sustainability consulting and manufacturers of high end green office materials has dwindled.

Xcel Energy just cut back the amount it would pay per watt of solar power by 40%, which might crimp the solar farm plans of energy ecopreneurs. Recent news about the slumping demand for some recyclables, especially paper and plastic, is bad news for many municipalities that have recyclables stockpiling.

One of the prevalent characteristics of entrepreneurs, however, is the ability to see opportunity.  There’s no reason those goods need to be shipped to China to be recycled and create new goods.  There are opportunities for that here in North America, which would also cut down on shipping and embodied energy.  If ever there was a time to make a play in recycling, the time might be now, as your raw materials costs just went through the floor.

Photo Credit: Bitterjug at Flickr Under Creative Commons License

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