The world of commerce today is changing, due in large part to a growing awareness of the condition of the earth's environment. Recognizing the costs of; consumerism, disposable and toxic products, the destruction of forests and pollution of air and water, the business world is taking a second look at their manufacturing processes and the environmental impact of using non-renewable or oil based raw materials.
The rising cost of oil is also a major factor that can cut profits and cause a small business to fail. Rising costs of petroleum based raw materials such as plastics and inflation that is driven by rising oil prices, will take their toll on a fledgling enterprise. These costs can also reduce a client base as people refuse to drive long distances to buy products from rural and many urban businesses.
These trends are not temporary ones. Micro entrepreneurs should be trained and educated to insure the long term success of their businesses with these factors in mind. While micro lending organizations need to be able to make realistic loans that will not fall short as inflation forces their client's customers to be more careful in their spending habits.
Helping budding entrepreneurs to recession proof their businesses, use eco-friendly business practices, and to rethink their markets in these times, is not just a good move for micro enterprise organizations but a necessity, if they expect the loans to be repaid and the micro-businesses to grow and thrive.
Three areas need to be addressed. Environmental practices, costs of raw materials and transportation, and adaptability to changing markets.
At Micro Enterprise Solar Harvest we are looking at these needs and have been addressing them as part of our mission statement. All those who go through our entrepreneurial training are instructed to pay attention to environmental issues as they develop their business plans. From using computer based accounting, marketing, and product development, to using solar power to fuel their home based businesses every step of the planning process looks closely at making sustainable choices.
We also encourage entrepreneurs to resist going directly into businesses that require the purchase or rental of office space. Starting from home keeps overhead low and may reduce child care costs as well as transportation costs. Although the need for additional space may come as the business expands in the beginning we try to help the entrepreneurs to think of the most inexpensive way to start their businesses. Here the miracle of the internet is absolutely invaluable.
Using the internet to market their businesses not only saves money but allows them to create incredibly beautiful stores at a fraction of the cost of rent. A typical website hosting company that offers flash sites with lots of bells and whistles charges a mere $200-$500. Less than one month's rent for a brick and mortar building.
Marketing on the internet not only saves trees (no paper), but also saves on postage and printing costs. While every business owner should have business cards printed, the rest of marketing materials can easily be done on the internet at much lower cost. Email delivery can be free and marketing ads such as Google's Ad Words programs can reach huge markets or be directed locally depending on the nature of the business.
Today, many manufactures will allow entrepreneurs to become drop-ship partners via the Internet, and that reduces the need for storage space for micro-entrepreneurs. Marketing via Youtube.com, my space, facebook or other social networking sites, and photobucket or flickr can be wildly successful and costs nothing except for the time to put the information up on the web. And all of this reduces the carbon footprint of the new business. It is a win /win /win situation. Saving the earth, saving money, and reducing risk both for the entrepreneur and the lenders.
For the poor, many times the choice between paying the utilities and eating or getting medical treatment will cause entrepreneurs to allow their electricity to be shut off for non payment simply because they have no other alternative. If they are running a home based business this may mean that the business suffers. In addition often the phone service may be shut off for non payment a crisis for any American business. Powering the business with small solar units can alleviate the problem.
Having a plan for an environmentally sound business, with low start up costs, and a strong internet presence can create a better opportunity for success for micro-entrepreneurs in an ever changing world. Look for part 2 of Eco-Micro Enterprise as we look at developing training curriculum that addresses these issues.