Practical Implementation Paper

Green Entrepreneurship Ecosystem map

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6.1. Introduction

The ecosystem of green entrepreneurship in today’s world is extremely important and growing rapidly. The increasing environmental awareness of society and the need to reduce the negative human impact on the environment make green businesses increasingly important. The green entrepreneurship ecosystem is crucial because of the range of benefits it brings to society and the environment.

This module focuses on the Green Entrepreneurship Ecosystem. The basic definitions related to this topic will be presented and the issue of the Green Entrepreneurship Ecosystem map will be addressed, that is, what it actually is, what it looks like and how to create it. We will also show existing examples of this type or similar maps.

6.2. Simple definitions

Let’s look at some basic definitions that will help us to better understand the module topic.

Green Entrepreneurship – Green entrepreneurship refers to the creation and development of sustainable businesses that aim to address environmental and social challenges. These businesses focus on creating innovative solutions to environmental problems, such as reducing carbon emissions, conserving natural resources, and promoting renewable energy.

Green Entrepreneur – Green entrepreneurs often combine their passion for sustainability with business acumen to create ventures that are financially viable while also making a positive impact on the environment and society. They may operate in a range of industries, such as clean energy, sustainable agriculture, eco-tourism, waste management, and green transportation.

Entrepreneurial Ecosystem – The entrepreneurial ecosystem is a collection of different individuals who may be potential or existing entrepreneurs, the organisations that support entrepreneurship, which may be companies, venture capitalists, business angels and banks, as well as institutions such as universities, public sector agencies, and the entrepreneurial processes that take place within the ecosystem, such as the rate of business creation, the number of companies with high growth potential, serial entrepreneurs and their entrepreneurial ambitions.

The definitions above and their understanding are a key part of comprehending the Green Entrepreneurship Ecosystem map concept, and what elements should be included when mapping green entrepreneurs.

6.3. What is the Green Entrepreneurship Ecosystem

Green Entrepreneurship Ecosystem refers to the various components and stakeholders involved in the creation and promotion of sustainable and environmentally-friendly entrepreneurship and innovation. The ecosystem includes startups, investors, policymakers, research institutions, support organizations, and other stakeholders working towards the common goal of creating a sustainable economy.

The Green Entrepreneurship Ecosystem consists of several key elements:

1. Green startups: These are businesses that create innovative products, services, and technologies that promote sustainability and address environmental challenges.
2. Investors: These are individuals or organizations that provide funding to green startups and support sustainable entrepreneurship.
3. Policymakers: These are government officials and organizations that create policies and regulations that support green entrepreneurship and sustainability.
4. Research and Development (R&D) Institutions: Universities, research centers, and laboratories that conduct research on green technologies, products, and services, and provide valuable knowledge and expertise to entrepreneurs.
5. Support organizations: These are entities that provide resources, mentoring, and support to green startups and entrepreneurs, such as incubators, accelerators, and networking organizations.
6. Non-Governmental Organizations (NGOs): Environmental organizations and advocacy groups that provide support, guidance, and resources to green entrepreneurs, and promote sustainability initiatives.
7. Consumers: These are individuals and organizations that purchase products and services from green startups and support the development of a sustainable economy.

The Green Entrepreneurship Ecosystem is essential for promoting sustainable economic growth and addressing environmental challenges. By connecting and supporting green startups and entrepreneurs, policymakers, investors, and other stakeholders can foster innovation and create new opportunities for sustainable development.

There are several statistics available that provide insights into the Green Entrepreneurship Ecosystem around the world. Here are some examples:

• Investment: According to a report by the Global Trends in Renewable Energy Investment, in 2020, global investment in renewable energy capacity was $303.5 billion, a 2% increase from 2019. This includes investments in wind, solar, hydro, and other renewable energy sources.
• Startups: According to a report by Cleantech Group, there were 12,852 clean technology startups globally as of 2019, with the majority located in North America and Europe.
• Government support: According to a report by the International Renewable Energy Agency (IRENA), as of 2020, 136 countries had renewable energy targets and 91 countries had policies to support renewable energy deployment.
• Job creation: According to a report by the International Labour Organization (ILO), the renewable energy sector created 11 million new jobs globally as of 2018, up from 10.3 million in 2017.
• Market size: According to a report by the Global Alliance for Buildings and Construction, the global green building market was valued at $260 billion in 2019, with a projected growth rate of 10% per year.

As can be seen, these statistics demonstrate the growth and potential of the Green Entrepreneurship Ecosystem, with increasing investment, startup activity, government support, job creation, and market size. However, there are also challenges and barriers to the growth of this ecosystem, including access to funding, regulatory barriers, and market barriers.

Source: https://img.freepik.com/free-photo/sustainable-development-goals-still-life_23-2150196661.jpg

6.4. Green Entrepreneurship Ecosystem in European Union

The European Union (EU) has been actively promoting green entrepreneurship and sustainability through various initiatives, policies, and funding programs. The EU has set ambitious goals to transition to a low-carbon, circular, and resource-efficient economy, and green entrepreneurship plays a critical role in achieving these goals.

Green entrepreneurship is an important component of the European Union’s efforts to promote sustainability and address climate change. Green entrepreneurs in the EU are playing a vital role in developing and scaling up innovative technologies and solutions to address environmental challenges while creating economic opportunities. They are leveraging innovation, collaboration, and funding opportunities to develop and scale up sustainable solutions that address environmental challenges while creating economic opportunities.

The green entrepreneurship ecosystem in the EU includes a range of stakeholders, such as startups, investors, policymakers, research institutions, and support organizations. The EU has several initiatives and programs to support green entrepreneurship, such as:

• Horizon Europe: Horizon Europe is the EU’s largest research and innovation program, with a budget of €95.5 billion. It includes funding opportunities for research and innovation in areas such as climate change, energy, and the circular economy.
• European Green Deal: The European Green Deal is a roadmap for making the EU’s economy sustainable. It includes initiatives and policies related to energy efficiency, renewable energy, circular economy, and sustainable agriculture, among others.
• European Investment Bank (EIB): The EIB is the EU’s long-term lending institution, providing financing for sustainable infrastructure and green projects. It also supports the development of green bonds and other financial instruments.
• Climate-KIC: Climate-KIC is the EU’s largest public-private partnership focused on climate innovation. It supports startups, research institutions, and other stakeholders working on climate solutions.
• European Institute of Innovation and Technology (EIT): The EIT is an EU agency that supports innovation and entrepreneurship in areas such as climate, energy, and sustainable mobility.

In general, the Green Entrepreneurship Ecosystem in the EU is well-developed, with a range of initiatives and programs to support startups and entrepreneurs working on sustainable solutions. The EU’s commitment to sustainability and the transition to a low-carbon economy provides a favorable environment for green entrepreneurship to flourish.

The Green Entrepreneurship Ecosystem in European (EU) countries varies depending on the level of development of the green economy, availability of resources, and local policies and regulations. Here are some examples of Green Entrepreneurship Ecosystems in different European countries:

• Germany: Germany is a leader in the green economy, with a well-developed ecosystem that supports green entrepreneurship. The country has a strong focus on innovation and research, with many universities and research institutions focused on sustainability. The German government provides various funding opportunities and tax incentives for green entrepreneurs, and there is a vibrant startup community focused on green technologies.
• Sweden: Sweden has made significant progress in transitioning to a low-carbon economy, with a strong focus on renewable energy and sustainable transportation. The country has a well-developed ecosystem that supports green entrepreneurship, with various funding opportunities, incubators, and accelerators focused on sustainability. The Swedish government also provides tax incentives and other forms of support for green businesses.
• France: France has a growing ecosystem for green entrepreneurship, with a focus on promoting innovation and sustainable development. The country has many universities and research institutions focused on sustainability, and the French government provides various funding opportunities and tax incentives for green entrepreneurs. France also has a vibrant startup community focused on sustainability, with many incubators and accelerators supporting green businesses.
• Spain: Spain has a well-developed renewable energy sector and a growing ecosystem for green entrepreneurship. The Spanish government provides various funding opportunities and tax incentives for green entrepreneurs, and there is a strong focus on promoting sustainability in the country’s startup community. Spain also has many universities and research institutions focused on sustainability, providing opportunities for collaboration and innovation.
• Denmark: Denmark is a leader in renewable energy and has a well-developed ecosystem for green entrepreneurship. The country has a strong focus on sustainability and green innovation, with many universities and research institutions focused on these areas. The Danish government provides various funding opportunities and tax incentives for green entrepreneurs, and there is a vibrant startup community focused on sustainability.

Green Entrepreneurship Ecosystems in European (EU) countries are varied, but many share common characteristics such as a focus on innovation, collaboration, and government support for green businesses. The development of green entrepreneurship ecosystems in European countries is crucial for the transition to a more sustainable, low-carbon economy, and the creation of economic opportunities that support environmental and social well-being.

Source: https://www.pubaffairsbruxelles.eu/wp-content/uploads/2021/07/bon-1.jpg

6.5. Green Entrepreneurship Ecosystem map

Green Entrepreneurship Ecosystem map is a visual representation of the various components and stakeholders involved in creating a sustainable and thriving green economy. It typically includes elements such as green startups, incubators, accelerators, investors, policymakers, NGOs, universities, and research institutions that are involved in promoting environmentally-friendly entrepreneurship and innovation.

The map helps to identify and connect the various players in the ecosystem, highlight the areas where there may be gaps or opportunities, and showcase successful examples of green entrepreneurship. It can be used as a tool for policymakers, investors, and entrepreneurs to understand the key components of the green economy and identify potential areas for collaboration and investment.

Creating a Green Entrepreneurship Ecosystem Map involves identifying and mapping out the various components of the ecosystem that supports green entrepreneurship. Here are the steps to create a Green Entrepreneurship Ecosystem Map:

1. Identify the stakeholders: Start by identifying the key stakeholders in the green entrepreneurship ecosystem, including entrepreneurs, investors, government agencies, universities, research institutions, NGOs, and other organizations involved in sustainability.
2. Understand the interrelationships: Map out the interrelationships between the stakeholders and identify how they work together to create a supportive ecosystem for green entrepreneurship. This will help to understand the dynamics of the ecosystem.
3. Map out the resources: Identify the resources available to green entrepreneurs, including funding, mentorship, networking opportunities, incubators and accelerators, and other resources.
4. Identify the key challenges: Understand the challenges faced by green entrepreneurs in the ecosystem, such as access to capital, lack of skilled workforce, regulatory barriers, and others.
5. Analyze the ecosystem: Analyze the strengths and weaknesses of the ecosystem by mapping out the opportunities and threats, and identifying the gaps and areas for improvement.
6. Create the ecosystem map: Using the information gathered, create a visual representation of the green entrepreneurship ecosystem. This could be in the form of a flowchart, a diagram, or a map that shows the interrelationships between the stakeholders, the resources available, the challenges faced, and the opportunities and threats.
7. Update the ecosystem map: Keep the ecosystem map up-to-date by regularly reviewing and updating the information based on changes in the ecosystem.

Overall, creating a Green Entrepreneurship Ecosystem Map involves a thorough understanding of the stakeholders, resources, challenges, and opportunities in the ecosystem, and how they interrelate to support green entrepreneurship.

It is important to note that the specific elements and their interactions within a Green Entrepreneurship Ecosystem may vary depending on the region, industry, and local context.

Here are some key elements that you might find in a Green Entrepreneurship Ecosystem map:

• Entrepreneurs and Startups: The core of the ecosystem, representing individuals and teams who develop and launch green business ideas and ventures.
• Incubators and Accelerators: Organizations that provide support, guidance, and resources to early-stage green startups, including mentorship, workspace, funding opportunities, and access to networks.
• Funding Sources: Financial institutions, impact investors, venture capitalists, angel investors, crowdfunding platforms, and government grants that offer capital and investment opportunities for green startups.
• Research and Development (R&D) Institutions: Universities, research centers, and labs that conduct research on green technologies, sustainable practices, and environmental solutions, providing valuable expertise and knowledge to entrepreneurs.
• Government Support and Policies: Government initiatives, policies, and regulations that promote sustainability, including tax incentives, grants, subsidies, and procurement preferences for green businesses.
• Non-Governmental Organizations (NGOs) and Networks: Environmental organizations, sustainability-focused NGOs, and networks that provide support, guidance, and advocacy for green entrepreneurs, promoting environmental stewardship and sustainability practices.
• Industry Associations and Clusters: Associations and networks that bring together green entrepreneurs, professionals, and stakeholders within specific industries or sectors, fostering collaboration, knowledge exchange, and market access.
• Market Opportunities and Demand: Growing market demand for sustainable products, services, and solutions, driven by environmentally conscious consumers, corporate sustainability commitments, and regulatory requirements.
• Technology and Innovation: Advancements in green technologies, renewable energy, circular economy solutions, clean transportation, and other innovations that drive the development of sustainable businesses.
• Education and Training: Academic institutions, training programs, workshops, and certifications that equip entrepreneurs with knowledge and skills in green entrepreneurship, sustainable business practices, and environmental management.
• Support Services: Specialized service providers, such as legal firms, consulting agencies, marketing firms, and impact measurement organizations, that cater to the specific needs of green entrepreneurs.
• Impact Assessment and Measurement: Tools, methodologies, and organizations that help measure and assess the environmental and social impact of green businesses, facilitating accountability and transparency.
• Collaboration Spaces and Co-working Hubs: Physical spaces that offer collaborative environments, shared resources, and networking opportunities for green entrepreneurs, fostering creativity, innovation, and cross-pollination of ideas.
• Success Stories and Role Models: Established green businesses and inspiring entrepreneurs who have achieved significant success and impact, serving as examples and sources of inspiration for aspiring green entrepreneurs.

One of the most important issues here is the question: What should such a map look like? An example of a Green Entrepreneurship Ecosystem Map could include different stakeholders in the center, with arrows pointing towards the different resources they provide, such as funding, mentorship, or networking. On the outer layer, there could be different challenges or opportunities that impact the ecosystem, with arrows pointing towards the different stakeholders or resources that can help address those challenges or leverage those opportunities. This type of map helps to show how the ecosystem is interconnected and how different components of the ecosystem can work together to support green entrepreneurship.

For example, visit this link: http://entrepreneurshipmapping.com/

This website includes a mapping project of the entrepreneurial system. This map has been created to help locate specific entrepreneurs within the UK. Admittedly, these are not specifically ‘green entrepreneurs’, however a similar map based on this example could be created based on the green entrepreneurship ecosystem.

Another example of what such a map might look like is shown below. Here you can see the key elements that any such map should contain:

Source: https://blogs.worldbank.org/psd/mapping-morocco-s-green-entrepreneurship-ecosystem