Green Options

How old is too old to be an entrepreneur? The stereotype that people take fewer risks as they age does not bear out in a report by the entrepreneur-supporting Ewing Marion Kauffman Foundation. Titled “THE COMING ENTREPRENEURSHIP BOOM“, the report shows that the average age of entrepreneurs is higher than many would expect.

“It turns out that over the past decade or so, the highest rate of entrepreneurial activity belongs to the 55-64 age group. The 20-34 age bracket, meanwhile, which we usually identify with swashbuckling and risk-taking youth (think Facebook and Google), has the lowest rate.”

Since the U.S. population is aging quickly, the number of people 55 and older is increasing dramatically. Because of increasing (healthy, productive) life expectancies and a decline in lifetime employment by large companies, the Kauffman Foundation is expecting that we’re “on the cusp of an entrepreneurship boom”. Download the fairly brief “pdf” of the report.

In yesterday’s Disruptive Innovation panel at SoCap09 “Three Successful Approaches to Scaling Impact”, Kevin Jones moderated a panel of three very different but equally disruptive business models. Instead of establishing a nonprofit organization to increase computer access around the world, founder Mark Beckford explained that NComputing is a for-profit company leveraging existing distributing channels and repair services in developing countries. Their hardware and software solution, which they call “the $70 PC”, can actually yield more margin and profit for distributors than more expensive computers with high-cost distribution networks.

NComputing is also using a technical solution to green PC use. With distributed computing, nComputing systems draw less than five watts, using 90% less energy than a typical PC, and can be run by solar power or a battery.

Sungeeta Chowdry of the Acumen Fund spoke about the Ripple Effect Project, their collaboration with IDEO (represented by Sally Madsen) to create solutions for customer-centered, sustainable and affordable delivery of water.

They brought together twenty organizations (both for-profit and nonprofit) on the ground in India and East Africa, in addition to the nonprofit Gates foundation, the private company IDEO and the Acumen social venture fund, for a complex cross-sector collaboration. IDEO led a human-centered design process, which means rapid prototyping, speaking to potential users immediately, iterating while continuing to listen, and coming up with a fairly quick solution. The resulting projects are commercial water sales operations, with some unusual aspects such as government ownership of the land and/or equipment in some places.

So why is water sales a more effective and scalable solution than donated aid? Some of the answers are compliance and aligning incentives. Madsen and Chowdry explained that people aren’t always able to make the best health decisions. Using a standard business practice of customer segmentation, IDEO put together a set of behavior profiles, so on-the-ground organizations could talk about more than health, such as by emphasizing the status of buying clean water or following  government direction.

The keynote address of the social capital markets conference called SoCap was given today by Sonal Shah from the White House Office of Social Innovation and Civic Participation. For the past few years, more and more people have been focused on combining social benefit with entrepreneurism, and this is the year of three-way collaboration.

Shah coordinates the domestic policy agenda to help government support both social entrepreneurs and nonprofit organizations. She says the government has the ability to drive resources toward the most innovative solutions. There will be funds such as to support nonprofit organizations grow promising programs and help them spread across the country, but Shah emphasized the government’s goal to catalyze multi-sector partnerships addressing issues in education, health care and environment.

An example she gave was that Cisco is participating in workforce retraining initiatives, helping to develop a community college curriculum in health IT.

One thing I didn’t cover last year when I wrote “How to do Cause Marketing Well” is whether cause marketing should even be done at all. But I found that a very interesting question to consider when reading “The Hidden Costs of Cause Marketing” in the Summer issue of the Stanford Social Innovation Review. Angela M. Eikenberry argues that cause marketing is “consumption philanthropy,” connecting shopping with a social good, whereas high-levels of consumption in the developed world could be hurting philanthropists’ efforts to save rain forests, fisheries, etc. And it may be counterproductive in increasing empathy for people in need and a sense of responsibility to help.

Cause Marketing Generally Works for Marketers

I’ve been a fan of cause-related marketing programs (although I typically work with smaller entrepreneurial businesses and not the Project Red and Pink Ribbon campaigns in the market). It’s clear why those of us with a marketing perspective would find a lot to love. As MC Milker wrote in our Network, consumers are interested in products tied to a cause. Since consumers respond, corporations are getting involved. Eikenberry cites IEG Inc, reporting, “Cause marketing expenditures went from almost zero in 1983 to and estimated $1.3billion in 2006″.

But for a moment, let’s think about the perspective of nonprofit organizations and fundraisers (and maybe even philosophers). Eikenberry says cause marketing “devalues the moral code of philanthropy by making virtuous action easy and thoughtless”.

Can Philanthropy Leading to Social Change?

Eikenberry is skeptical of that consumers can right the world’s wrongs. When they are buying and fulfilling their material needs and desires, “they generally have little impetus to consider…’the public good’”. She sites two studies that show that when consumers have bought a cause-branded product they are less likely to make charitable contributions and feel they have “already done their philanthropic share”. So does cause-marketing decrease or increase the amount of money going to charity? ‘hard to know, but it is definitely shifting where the money goes.

You can get legal advice, accounting services, marketing consulting and more.  But sometimes the key to entrepreneurial success is just stick-to-it-iveness.  Where do you turn when the whole process of running your own business (or getting one off the ground) is just overwhelming? One place is a book.

Tuesday, Tina Seelig spoke at the Commonwealth Club in San Francisco about her new book “What I Wish I Knew When I Was 20“, and her words can be a great reminder of how fun (and important) being an entrepreneur is, if your motivation or energy ever diminishes.

Seelig’s first point is that problems are opportunities; bigger problems are bigger opportunities. Playing a video clip of Vinod Khosla saying something to the effect of, “No one is going to pay you to solve a small problem.” So, if you’re overwhelmed, it could be a good sign. You may have taken on a very worthwhile opportunity.

You can see other videos of speakers at the Stanford Technology Ventures Program, which Seelig heads at ecorner.Stanford.edu. A free Stanford education!

As I mentioned in my Intersolar post earlier this week, attending the Intersolar conference and tradeshow is a good opportunity to experience the growth and employment potential of the PV (photovoltaic) solar industry. Specifically, I was looking for tips to pass on to Ecopreneurist readers, and I found that this show (and possibly others) is/are a great way to get free information about starting a solar business.

On the last day of the show (yesterday), Jeff Spies, Director of Training & Tradeshows of AEE Solar gave a half-day workshop called “Launch and Grow Your Solar Business”. Free to attendees of the Intersolar exhibits, the workshop covered everything from the qualifications needed to become a solar dealer to common configurations of residential and small commercial solar power installations to business strategies. And, if you would have signed up before early June, registration to the exhibit portion of the show would have been free (and after that point it was $100).

No recession in evidence here.  Yesterday’s opening session of Intersolar North America was packed and full of energy. The solar trade show almost tripled its exhibition space and more than doubled the number of exhibitors from last year, when the first North America Intersolar show was also hosted in San Francisco.

As far as I can tell, there won’t be any major news coming out of the conference and show. Intersolar’s growth and popularity shows that this is still a young industry and more and more people want to learn about the technology and products available–as well as participate in discussions about how to grow the industry and influence public policy. Organizers say that there are 17,700 registered attendees from 79 countries and 333 exhibitors from 23 countries.

The primary “news” is a continuation of increases in PV efficiency and the lowering of costs of production for equivalent units of electricity. It’s good news but not new news.

Keynote Address by Mayor Gavin Newsom

In this blog network, you’ve probably read posts furthering the friendly rivalry between the cities of San Francisco and Portland (and now Seattle). San Francisco Mayor Gavin Newsom and mayors of these other progressive cities blog about their communities’ challenge to each other to be more green and to claim leadership in electric car usage, solar installations and more.

Last night I went to a presentation sponsored by the Luxury Marketing Council called, “How to Survive in 2009″.

Seasoned marketing consultant Alf Nucifora gave some very practical advice, which I have pared down to focus on tips that are ideal for green businesses:

> One recommendation is to highlight your products or services that can be considered “luxury within reach”. Organic cotton towels, lotions with essential oils, beautiful bamboo bowls all come to mind, but services fit this bill as well–maybe prepared meals from locally sourced ingredients.

> Family friendly entertainment is big right now. People are staying home or are looking for “staycation” ideas.

> You might also focus on teens, who tend to have a high level of discretionary income (and from a project I worked on, I know that they influence almost all spending within a household).

> Position your product or service as a gift-giving option. Wealthy people aren’t as comfortable these days with conspicuous consumption, but it is still good to be generous to others.

I couldn’t help but be curious about a book called “Do You Matter?” It is a great question for an entrepreneur to ask. And the book’s subtitle “How Great Design Will Make People Love Your Company” is compelling. Doesn’t sustainability make our companies matter? Doesn’t our value of the environment make us matter? Is design really THE thing?

The authors, Robert Brunner (once a product designer for Apple and now a principal in the design firm Pentagram) and Stewart Emery (author of “Success Built to Last” and a leader in the Human Potential Movement) did not just rely on their own experience, but also relate numerous case studies about what other companies have done right in developing design-driven (and customer needs focused) organizations.

As you can see on the authors’ site, they are not just talking about package design and logos. The briefest synopsis of the book is, “We’re talking about design as a total concept—not just about how a product looks, but how the product operates, how it sounds, and how it feels. Also included in this idea of design is the quality of your purchase experience, of what happens when you actually open up the box, how you start to feel, and what all this communicates to you. And of course, there is the chain of events through which you became aware of the product. This is part of the design connection too—what all those touch points mean to you as a customer.”

One point I particularly liked is, “If you have your own brand-driven approach to design, others can’t really take this from you. People can try to copy it, but they they become merely derivative. If you do a good job at it, you have something that becomes a very strong and defensible strategy… when a customer purchases your product or pays for your service, they feel they have joined something.”

A Boston-based branding firm Cone LLC recently released a survey that quantifies consumer interest in having a two-way dialog with the companies they buy from. As we often discuss on this blog, social media is a perfect medium for mission-based companies, such as green businesses. And now eco-entrepreneurs have some real stats to chew on:

First of all 60% of Americans use social media, and the figure is higher for your market, if you sell to younger Americans.

Cone surveyed almost 1100 adults and found that (of that 60%) 85% feel that companies should interact with their customers via social media.

I found it interesting that the men surveyed were twice as likely as women to use social media to interact frequently with companies (33% versus 17%).