Introduction to Green Microenterprise Development

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Introduction to Green Microenterprise Development
Presented by Liz Penney, Director of Community
Outreach, Appalachian Community
Enterprises/Georgia Green Loans Jason Friedman,
Principal Friedman Associates
Funded in part by U.S. Small Business
Administration PRIME Program
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Our Objectives Today

• What do we mean by green microenterprise?
• What is the role of MDOs in the Green Business
  Movement?
• Does green make sense as a strategy for MDOs?
  What goals does this accomplish? Does it
  contribute to our bottom line?
• What are our colleagues doing in this area?
• What are the elements of a green microenterprise
  strategy?

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What Do We Mean by Green?
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The Green Economy

• Consumer spending in the green economy is growing
  rapidly.
• In 2005 in the U.S. alone, there was a 228.9
  billion market for goods and services focused on
  health, the environment, social justice, personal
  development and sustainable living.
• These include purchases related to renewable
  energy, organic food, alternative fuel vehicles,
  non-toxic cleaning products, alternative health
  care and resource-efficient products.
• This market sometimes referred to as LOHAS,
  short for Lifestyles of Health and Sustainability
  -- is projected to reach 1 trillion annually by
  2020 (LOHAS Journal, 2007).

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Why Now?

• Demands for increased transparency
• Need to support a growing and developing
  population
• Rising public concern for the impacts on the
  environment
• Climate change.

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How is Green is Good Business?

• Reduce waste increase profits
• Increase revenue by recognizing, meeting,
  anticipating customer expectations for better,
  safer and more benign products and services.
• Reduce risk by eliminating hazards to workers,
  customers, and the world before the regulators
  require you to!

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What's Green?

• How far must a company go to be considered a
  green business?
• How do you define a green business?

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Which Cleaning Business is Green?

• Uses nontoxic products for residential and office
  cleaning.
• Uses its own homemade products and packages into
  reusable kitchen spray bottles no shipping
  required.
• Like 2, but limits is geographic service area to
  one neighborhood and employees ride their bikes,
  eliminating the need to drive.
• All three could be described as green even
  though they vary considerably on where they fall
  on the continuum in terms of sustainability and
  environmental commitment.

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Scott Cooney in Build a Green Small Business
defines it as one that incorporates the following
attributes of environmental commitment into its
business plan

• 1. Incorporates principles of sustainability into
  each of its business decisions. All three
  cleaning companies looked at operations with
  environmental commitments in mind. With this
  focus, then as the business grows and new
  opportunities arise, they will be able to expand
  in the greenest manner that is most practical for
  them.
• 2. Supplies environmentally friendly products or
  services that replace demand for non-green
  products. Patagonia fleece out of recycled
  soda bottles recycles reduced demand for
  bleached, chemically farmed cotton products
  drives more farmers to organic farming,
  recycling, less to oil companies.

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Definitions

• 3. Greener than traditional competition. Organic
  farming is clear cut. Many businesses are not.
• Is a bike shop green? Downhill Mountain bikes?
  Likely need to be driven to the mountain and then
  carried up by chair lift. As opposed to a bike
  shop that sells commuting and road bikes ride
  right from their house.
• 4. Commitment to environmental principles in its
  business operations.

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What Green is Not

• The trouble with green is that it implies just
  environmental.
• But sustainability living and doing business in
  ways that don't erode the potential for future
  generations is commonly referred to as the
  triple bottom line (TBL) of economic,
  environmental, and social benefit.
• Social benefit is not about just doing good.
  It's also a path to creating significant durable
  business value.

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Caution!

• However, green is not just another sector to
  target like childcare, arts, or food.
• What makes green different is that it represents
  a specific philosophy and set of values about
  operating a business.
• The green business conserves natural resources,
  eliminates waste and stays ecologically in
  balance. It implement beliefs, policies, and
  practices that improve the quality of life for
  their customers, their employees, communities,
  and the environment.

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Questions to Consider?

• How is your organization responding to the Green
  Business movement?
• Do you talk about sustainability with your
  clients?
• Does green make sense as a business strategy
  for MDOs?
• What goals does this accomplish? Does it reflect
  your mission? Should it?
• Does it contribute to our bottom line?

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Green Organizational Sustainability?

• Also, from an institutional perspective,
  developing expertise in green business
  development can lead to
• Increased visibility
• New strategic alliances
• New funding and
• Increased sustainability.

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• What roles are other MDOs playing in the Green
  Business Movement?

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Enterprise for Equity, Washington State

• Thomas grew his business from a traditional
  janitorial service to a Green Certified
  janitorial business.
• His services are in greater demand among some
  customers because of his certification and he
  is able to charge a much higher rate.
• More than 25 of E4E businesses now selling their
  products or services in the region have a
  sustainability focus.

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• Specialized Workshops

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AnewAmerica's Green Business Certificate Program
(San Jose, CA)

• Encourage entrepreneurs to adopt green,
  sustainable business practices.
• Entrepreneurs reach green business certification
  levels by greening their operations or offering a
  green good or service. 
• All AnewAmerica certified green business owners
  must have an active social responsibility plan.
• Providing green business support through
  implementing green curriculum in its Virtual
  Business Incubator classes and hosting green
  business experts as guest speakers and coaching
  from current green business owners and
  professional consultants. 

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Latino Economic Development Corporation,
Washington, DC.

• In communities across North America, BALLE
  (Business Alliance for Local Living Economies)
  networks are launching campaigns to help
  consumers and entrepreneurs think locally.
• Created a business alliance, Local First DC, to
  promote small, local, and independent businesses,
  educating communities about the value of shopping
  locally, and advocating for the implementation of
  economically and environmentally sustainable
  business practices.

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LEDC Greening Your Garbage Workshop

• LEDCs Local First DC developed a workshop for
  businesses to learn how to improve and implement
  waste, recycling and composting programs in their
  small business.
• Learn from entrepreneurs who are composting their
  waste
• Local recycler of bio-degradable
• Commercial composter
• Grease recycler
• Find local suppliers of environmentally friendly
  products
• Hear about DC's recycling and composting
  initiatives from the District Department of the
  Environment

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LEDC Green Cleaning

• Staff developed a course for owners of cleaning
  companies that are looking for an edge over their
  competition.
• Explain the advantages of green cleaning,
  recommend products, analyze the demand for these
  services in the DC area, and teach how to market
  the benefits of green cleaning.
• Connect to distributors and wholesalers who sell
  these products and provide free samples
• Developed with Anca Novacovici, owner of eco
  coach (http//eco-coach.com) and author of the
  book "Sustainability 101 A toolkit for your
  Business"

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Other Green Training and Workshop Ideas

• The Key Principles and Steps to Incorporating
  Green Environmentally Responsible Practices
  into Your Small Business
• Evaluating environmental and natural resource
  market issues and identifying green business
  opportunities
• Understanding Green Marketing Terms and Labels
  and their Potential for Benefits for Your
  Business.
• Greening Hospitality
• Green Waste Management, Green Gardening and Green
  Landscaping Business Opportunities

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Specialized Business Technical Assistance
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How Green Is Your Daycare? Questions For
Caregivers

• Does the facility have wall-to-wall carpets,
  which gather dirt and expose children to
  allergens or throw-rugs that are cleaned
  regularly? Was chomated copper arsenate-treated
  wood used in any outdoor playset or furniture?
• Has soil been tested for contaminants?
• Do you use any art supplies on the CA Office of
  Environmental Health Hazard Assessment's list of
  products which cannot be used in grades K through
  6?
• Do you monitor air for carbon monoxide?

• Are employees allowed to smoke at or near the
  facility?
• Are pesticides used within or outside the
  facility at any time?
• Do you use least-toxic cleaners free of
  irritating chemicals, like chlorine, ammonia and
  synthetic fragrances?
• Are staff trained in eco-friendly practices, such
  as integrated pest management and the use of
  least-toxic cleaners?
• Do you test water for lead?

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Sustainability Assessments Neighborhood Assets,
Spokane, Washington

• Approved loan clients receive a thorough
  sustainability assessment conducted by
  Sustainable Local Investments Project (SLIP).
• Coalition of public and private organizations in
  the area SLIP provides access to specialists in
  the community who can help businesses make cost
  effective investments in energy conservation,
  alternative energy sources, waste reduction, and
  other environmental improvements.
• Commit to implementing certain recommendations
  from the SCORE assessment, they are given a 2
  point discount on their loan. Follow up to
  ensure that they follow through on those
  implementation steps.

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Green Sustainability Checklists

• General sustainability checklists.
• Heres another one.
• For a landscaping business.
• Food facilities business.

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Green America

• Founded in 1982, Green America is a national
  nonprofit 501(c)(3) organization.
• Empowers individuals to make purchasing and
  investing choices that promote social justice and
  environmental sustainability.
• Demanding an end to corporate irresponsibility
  through collective economic action
• Promoting green and fair trade business
  principles while building the market for
  businesses adhering to these principles
• Building sustainable communities in the US and
  abroad.

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Green Business Network Certification Program

• Actively use their businesses as tools for
  positive social change
• Run "values-driven" enterprises that operate
  according to principles of social justice and
  environmental sustainability
• Are socially and environmentally responsible in
  the way they source, manufacture, and market
  their products and run their offices and
  factories and
• Are committed to developing and employing
  extraordinary practices that benefit workers,
  customers, communities, and the environment.

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Green Business Network Certification Program

• If approved for full membership, the company
  receives a free 25-word listing in both the
  online version and the next print edition of the
  National Green Pages, the right to use our
  exclusive Green Business Seal of Approval, and
  eligibility for advertising in our popular green
  consumer publications.

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• Green Business Financing

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Mountain Association for Community Economic
Development (MACED)

• MACED works in eastern Kentucky Central
  Appalachia to create economic opportunity,
  strengthen democracy and support the sustainable
  use of natural resources.
• The Energy Efficient Enterprises (E3) program
  helps businesses realize cost savings through the
  use of energy efficient equipment and systems or
  through renewable energy sources.
• Begins with an on-site energy assessment,
  followed by recommendations for change
  assistance with identifying and choosing an
  independent installation company.
• MACED provides financing for identified
  improvements at low rates and flexible terms for
  each enterprise.

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About ACE

• Our mission is to provide Access to Capital,
  Connections, and Education to help new and
  existing small businesses.
• ACE provides loans of 500 to 50,000 in 68 North
  Georgia counties, including the Atlanta metro
  area.
• ACE is an SBA Microloan Intermediary and CDFI.
• Since 2000, ACE has loaned over 4.5 million and
  created or retained over 1000 jobs.

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What is Georgia Green Loans?
A new brand Georgia Green Loans provides
capital to start or expand an eco-friendly
product or service or green an existing
business
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1,917 unique visitors since May 2009 ranked high
in Google due to blog, Facebook and Videos
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Target Markets

• Green industry businesses, including alternative
  energy, organic farming, recycling, conservation,
  green building and pollution prevention.
• Traditional businesses who want to implement
  green products or services, make energy
  efficiency improvements, or become more
  sustainable.

New jobs come from new young firms. Kauffman
Entrepreneur Foundation, 2009
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Success SolarFlex Technologies

• Customers
• Commercial
• Public sector
• Non-profit organizations
• Goals
• Control costs
• Save energy
• Create a comprehensive energy strategy, and
• Achieve an excellent return on investment.

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Success Georgia Mountain Berry Farms

• Eastanollee, Georgia
• Main produce Blackberries
• Currently three part-time workers
• GOALS
• Wholesale production
• 15-20 local employees
• Georgia Grown/Georgia Made

This area used to be all textilesit can become
an agricultural force in Northeast Georgia -
Arthur Thomas, Owner/Founder
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Success American Installation Corp.

• Energy efficient exterior doors using recycled
  materials
• Received loan for expansion
• Three employees added since loan was made

Every component of our metal and glass doors is
American Made! Plus, no one else is building
these doors in the US. - Israel Greene, Owner
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Success Better for Babies, Inc.

• Inspired overseas Better for Babies, Inc. now has
  its roots firmly planted, and growing, outside
  Atlanta.
• Owner Leah Carter, opened her own manufacturing
  facility near her towns square.
• Leah and her partner, Lauren Parker, operate
  local sustainable production, fair wages, green
  business practices, and an uncompromising
  commitment to quality products, innovation and
  customer service.

Little Beetle organic diapers and wool covers
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Results Thus Far

• 16 green loans for a total of 377,756.
• Average green loan size of 23,610.
• Created/retained 84 full time and 4 part time
  green jobs.

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Georgia Green Loans Metrics
Demographic Data collected on all loans

• Environmental Benefits?
• Energy conservation through reduction
• Energy efficiency improvements
• Renewable energy generated
• Toxic substances reduced, reused, recycled or
  eliminated
• Waste products reduced, reused, recycled or
  eliminated
• Water quality preservation
• Water use reduction
• Other?

• Business Benefits?
• Lower Fuel Costs
• Renewable energy created
• Toxic substances eliminated
• Waste costs reduced or eliminated
• Water quality enhanced
• Water use/cost reduced
• Other?

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ARRA Commercial Energy Efficiency Grant

• ACE has been awarded 700,000 through GEFA,
  Georgia Environment Facilities Authority, to
  provide small businesses in North Georgia,
  including metro Atlanta, with education,
  technical assistance and funding for energy
  efficiency strategies.
• 70 energy audit grants to small businesses
• 70 small business loans for energy upgrades
• 175 jobs created or retained
• Energy consumption measured to determine impact
• Work with industry groups to target high energy
  users

Calculated on ACEs Georgia Green Loans
multiplier
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Georgia Green Loans Advisory Council

• Guide the green loan program
• Provide expertise in green business development
• Bring connections to potential funders and
  individual donors
• Assist in guiding the establishment of Georgia
  Green Loans in the state of Georgia
• Leaders in the community and people with highly
  respected skills in critical areas
• At least two members will be current clients of
  GGL
• 2 year term meet quarterly
• Examples Georgia Organics, Southface Energy
  Institute, foundations

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Collaboration with other lenders

• Collaboration with two other lenders SBAC
  (Small Business Assistance Corp out of Savannah)
  and ACT (Albany Community Together, Inc.)
• When a business goes to the website to apply for
  a loan, their county selection automatically
  routes them to the organization that handles that
  area
• Recent approval by SBA to split non-served middle
  Georgia counties

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ACE Self Greening Initiativeas of 2/17/2010
Recycle and Green Policy
Video Conference

• Weatherize

• Goal
• Recycle, Reduce, Reuse through efficient
  workplace behavior
• Steps Taken
• Weekly Recycling pickup service.
• Recycling boxes added to make recycling easier.
• Status
• Need to brainstorm on ways to balance consumption
  and productivity.
• Create a policy that reduces office costs and
  promotes green behavior.

• Goal
• Reduce electrical costs associated with
  conditioning ACE office.
• Steps Taken
• Energy Audit has been conducted.
• Bids taken for Insulation and HVAC.
• Data capture spreadsheets created to capture
  effects and payoff
• Status
• Larry is discussing bids with partner, awaiting
  outcome

• Goal
• Reduce travel costs and Green House Emissions
• Steps Taken
• Discussed technology/equipment with James.
• Data capture spreadsheets designed to capture
  savings, payoff, and emission reductions
• Status
• Waiting on Green light to purchase equipment and
  set up Skype at various locations

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• So, what are the next steps for my organization?

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1 Develop Your Organizational Sustainability Plan

• Effective practitioners model sound business
  behaviors to their clients.
• Use the tools provided to develop your own plan.
  
• Start with practical, cost-effective steps and
  build on it.

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2 Do your homework What does the green sector
look like in your community?
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2 Build your knowledge base seek out experts

• economic development organizations,
• state economists,
• renewable energy entrepreneurs,
• farmers,
• business people who market green building
  materials,
• sustainability advocates,
• environmental organizations,
• recycling program coordinators,
• agricultural researchers,
• university extension agents,
• environmental lawyers,
• community development consultants,
• pollution remediators,
• composters,
• green building contractors
• Green entrepreneurs in your community!

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Step 3 Begin the Dialogue with Your Clients

• Incorporate language about sustainability into
  the curriculum and encourage clients to build
  those concepts into their business plan.
• Ask them to sign a sustainability pledge.
  Use/adapt the sustainability/certification
  checklists.
• Partner with a local government green
  certification program.

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4 Convene Gatherings

• Join a local business sustainability group or
  convene a gathering of local experts to talk
  about green business opportunities.
• From this dialogue, you may identify
  opportunities and gaps in the sector and help
  develop a plan to address them.
• You may also identify potential resource
  providers, volunteers, mentors, and stakeholders
  to help you launch a green initiative.

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5 Start a Pilot Project

• Start your green initiative with a simple
  workshop for your clients on The Basics of
  Starting a Green Business.
• Invite local businesses and experts to lend their
  perspective and provide advice.
• By this time, youll have a good idea on the
  feasibility of launching a broader set of
  services, including specialized training,
  technical assistance and lending.
• Talk with staff from green job training programs
  to assess interest in a self-employment training
  for contractors.

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6 Broaden Your Case Statement for Support

• Taking a proactive role in green business
  development will appeal to funders and donors who
  are increasingly directing their investments
  toward organizations and businesses that
  contribute to a clean, healthy environment,
  embrace equal opportunity and produce safe and
  useful products.
• Look at your current list of donors to assess
  their potential interest in a green initiative.

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Resources

• Green Branding Why Originality Matters by Jerry
  Stifelman http//www.treehugger.com/files/2008/06
  /green-branding-originality.php
• Naturally Successful Video http//www.arnoldcreek
  productions.com/NaturallySuccessful.htm
• http//www.izzitgreen.com/
• Green Resource Took Kit

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Upcoming Webinars

• Green Marketing and Messaging for
  Microentrepreneurs
• Developing Collaborations to Support Green
  Microenterprise Development
• Green Microfinance
• Organizational Development Implications for Green
  Microenterprise

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Thanks!

• For Further Information
• Elizabeth PenneyDirector of Community
  OutreachAppalachian Community Enterprisespenney_at_
  aceloans.org770-718-8992 (cell)
• Jason Friedman, PrincipalFriedman
  Associatesjasonj_at_friedmanassociates.net
  319-341-3556