A Study on Assessing the Role of Ecopreneurs in Solving Environmental Problems

Abstract

Introduction: Market systems have had a negative impact on the environment because they have not addressed negative environmental externalities and have undervalued natural resources, which have resulted in over-exploitation and depletion. With varying degrees of success, governments have tried to address the issue using a combination of market-based and command-and-control tools. Ecopreneurship, the practice of businesses bringing environmentally friendly or comparatively more environmentally friendly goods and procedures to the market, is one of the most effective solutions for addressing such market failures. The objective of the study is to evaluate the various approaches used by ecopreneurs to address environmental issues.

Methodology: This article presents a theoretical framework for evaluating the rise of ecopreneurship in a particular business or community. It is a conceptual paper, and all relevant secondary data have been included in the study. The study identifies the different ecopreneur techniques and how to apply them to eliminate environmental problems, and examines how programs for waste reduction, recycling and reuse have been implemented by industrial environmental management, together with the role of production technology selection. The literature reviewed covers Schaper (2002a) on entrepreneurs addressing environmental issues, Kirkwood and Walton (2010) on entrepreneurs basing operations on sustainability principles, and Ghisellini et al. (2016) on the circular economy, alongside the three ecopreneurship approaches proposed by Rodriguez-Garcia, Maria and Agustin, presented in Table 1.

Results & Discussion: Three approaches to ecopreneurship are identified. The first, drawing on Gerlach (2003), Pastakia (1998) and Petersen and Schaltegger (2002a), holds that ecopreneurship is based on implementing innovations in the environmental sector, where the ecopreneur is aware of the environmental impact of their business and develops innovations that reduce it. The second, drawing on Volery (2019), Azzone and Noci (1998), Porter and van der Linde (1995) and Holger (2006), holds that ecopreneurship is a strategic tool whose sustainable policies improve profit prospects while being kind to the environment. The third, drawing on Anderson (1998), Kyro (2001), Cantino et al. (2017) and Rodriguez-Garcia, Maria GG and Agustin CC (2019), holds that ecopreneurship is a tool to transform society, with ecopreneurs playing a key role in the evolution of institutions. The discussion covers eco-innovation as defined by the European Commission and its Environmental Technology Action Plan, the ecological consumer landscape, fair trade under the World Fair Trade Organization, local consumption, place-based enterprise, and organic products under the EU Organic Logo established in 1992.

Conclusion: The current status of ecopreneurship, a new branch of entrepreneurship, is examined holistically in this article, and the analysis of the literature highlights its salient characteristics. The study adds to the body of literature by examining the connections between eco-innovation and ecopreneurship, both of which are founded on the goal of being environmentally friendly. Active cooperation between customers, producers, distributors, and the government is required to achieve steady and constant success in this industry. Until all stakeholders embrace sustainable policies and initiatives, efforts to promote a more environmentally friendly production model will fail. Consumers ultimately decide the worth of a product through their purchasing habits, but consumer activism is ineffective unless government backs it with policies and laws.