The ORINOKO project has developed software that combines real time video feed to re-set traffic lights.

The new system fills the gap between the established but expensive induction loops and the journey time measurements obtained using sensors in taxis.

Image Credit: Elcopilot at Flickr under Creative Commons License

The researchers studied coffee and asked consumers to determine how much they would pay for ethically produced coffee; how much they would pay for coffee produced by an unethical company and then tested at what level a product is considered ethically produced.

There were a variety of different permutations in the study but the results were a bit surprising!

Consumers, in general will pay more for ethically produced goods

Consumers, at the moment don’t care if it’s 100% ethically produced or 5% ethically produced…they’ll pay the same premium

Very aware consumers, as in aware of what ethically produced means and who care about it are willing to pay a bigger premium for ethically produced goods.

Some consumers will still by products even if they are unethically produced…if the price is right!

In general I didn’t find much of this surprising except that consumers didn’t really seem to be wiling to pay a higher price for MORE ethically produced goods. Though, on second though, this isn’t all that surprising since our Byzantine labeling system makes it hard to understand what producing ethically means in the first place.

Bad news in the short run for social entrepreneurs who place a priority on doing good, as opposed to doing well (making money) but, in the long run, the general public will become better informed and highly ethical goods will be able to demand a premium.

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Sales of organic food clothing and household cleaners are rising as parents become more and more aware of the hazards of everyday toxins. Articles about phthalates in plastic and the mercury-autism connection abound but nobody’s talking about zzzzs.

As any parent can attest to, the aggressive, whiny or anti-social behavior engaged in by toddlers and preschoolers is often caused by hunger. We see it in our kids all the time. I see it in myself.

But just as often it is caused by not enough sleep. How much sleep? Well, children between 2 and 4 years of age need between 11 and 13 hours of sleep per night…how many get it?

If your household gets up at going by 7:00 AM, that means your 5 year old should be in bed by 7- 7:30 and asleep by 8:00. Your 2-year-old should be asleep by 6:00. These facts have been published in a number of different places but I ran across them again today at Ask Dr. Sears.

2 years…….. 13 hrs

4 years………. 11-12 hrs

5 years……….. 11 hrs

10 years……… 9.75 hrs

Long ago when I first started attending a Waldorf Playgroup I came across a book entitled The 7 O”Clock Bedtime and became a convert to ensuring my child gets enough sleep. It’s not that easy. I rush around in the early evening to get dinner on the table at 5:30 or 6:00. Bath comes before dinner (which necessitates an extra change of clothes since dinner too often ends up on the post bath attire.) Dinner is followed immediately by bedtime.

I have a number of friends who try to follow this sort of routine and it is a trade-off. If mom or dad doesn’t get home until 6:00, there’s no time for pre dinner play. If the arrival is later, a kiss good night may be all there is of the parent child interaction for that day. It is a trade-off. I choose getting enough sleep.

If either of us gets home after 6:00 dinner is already started. Yes, emotionally it’s better for children to enjoy a family dinner but, without enough sleep children focus less in school have a harder time with impulse control and can be generally crankier…you know the feeling.

So, while most parents wonder if a toddler in the midst of acting out is hungry, a product of inadequate parenting or undisciplined, I’m the one sidling over to the parent and politely asking…what time did he go to bed last night?

Image credit: Smaiksha at Flickr under Creative Commons License

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The recently completed National Geographic/GlobeScan “Consumer Greendex,” rather than measuring the overall “greenness” of each nation looks specifically at consumer behavior and tells a different story than that of traditional measurements of sustainability by country.

The US, still doesn’t fare very well

The findings show that consumers in Brazil and India tie for the highest Greendex score for environmentally sustainable consumption at 60 points each. They are followed by consumers in China (56.1), Mexico (54.3), Hungary (53.2) and Russia (52.4). Among consumers in wealthy countries, those in Great Britain, Germany and Australia each have a Greendex score of 50.2, those in Spain register a score of 50.0 and Japanese respondents 49.1. U.S. consumers have the lowest Greendex score at 44.9. The other lowest-scoring consumers are Canadians with 48.5 and the French with 48.7.

While consumers in developing countries tend to live in smaller homes, rely less on cars, own fewer appliances and prefer greener products, those in industrialized countries are the least likely to buy environmentally friendly products, live in larger homes and drive more frequently. This is, of course directly tied to the “opportunities” afforded by industrialization.

However, US consumers, with their, only now, budding awareness of the impact of their actions on the planet, fared far worse than many Western European countries. US consumers are less likely to use public transportation, have larger residences and rarely minimize their use of fresh water.

The Greendex, a sustainable consumption index of actual consumer behavior and material lifestyles across 14 countries, will be tracked over time and will be comparable across the selection of countries representing both the developed and developing world.

For eco-entrepreneurs, in the US, these findings equal opportunity. With American consumers farther down the adoption cycle, entrepreneurs in the US have the opportunity to look to countries such as Great Britain, Germany and Australia to find new ideas. In particular, products that have taken hold in the similar cultures of English speaking countries offer real opportunities for import or adoption by forward looking entrepreneurs.
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Check out my interview here and here:

I’ll be appearing on the show again on June 11th so stay tuned.

I know, we were one such family!

Unfortunately, a new study, found fixing up ‘This Old House’ may increase exposure to lead in young children.

The study conducted by researchers at Cincinnati Children’s Hospital Medical Center found that interior renovation of older housing is associated with a modest increase in children’s blood lead level (BLL) and associated long-term health risks.

If the house in question was built before 1978, before the federal ban on lead-based paint, tearing out walls and ceilings could expose children to lead hazards, the study concluded.

Researchers found that children living in homes built before 1978, in particular those that had been renovated had higher levels of lead in their bloodstream than children living in newer homes. In particular the researchers noted that children living in the homes during renovation, had increased exposure to lead because of the lead particles disturbed during the work. If appropriate preventative measures are not taken, lead paint dust can be spread throughout the house through heating and air conditioning ducts.

“Toxic agents such as lead could have long-term effects on children’s brain development even as early as when they are fetuses,” said Dr. Spanier. “If lead poisoning goes undetected and untreated in children, it has the potential to result in a number of neurodevelopmental issues, including ADHD and learning problems.”

To prevent or minimize children’s exposure to lead, there are a few simple measures that can be taken.

• Attach a High Efficiency Particulate Air, or HEPA, vacuum to all power tools and use a HEPA vacuum to clean up the area
• Use heavy plastic to cover doorways, windows, floors, and any furniture that can’t be removed from the renovated area and to dispose of all trash and debris
• Block off and shut off air conditioning or heating vents in the work area
• Close windows and doors in or near the work area
• Mist paint before sanding or scraping
• Keep everyone not working in the area out and, if possible, have the children stay at a friend or relatives while the work is being done
• Use personal protective devices (masks, gloves, etc)
• Seek training in lead safe work practices
• Also, if parents hire a contractor to do their home renovations, it’s important to choose someone who has gone through lead safety training.

As a parent recently involved in a renovation I carefully scanned this list of precautions and, fortunately was able to check off each one. While our son was living in the house during the renovation, fortunately the area impacted had an outside entry and…since we have individual radiant heaters in each room (not very efficient since we freeze in the winter), we didn’t have to worry about ventilation ducts spreading the lead paint dust.

Many families though have not been as lucky. If you have any concerns about the impact of your renovation on your child’s health, consult your pediatrician and ask him or her to order a lead test.

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Overall the average company score increased from 30.6 in 2007 to 39.3 this year - a 22% increase. Twenty-three companies were ranked as “striding” (making progress toward change) vs. 18 last year. Ten companies are still ranked as “stuck” vs. 18 last year.

However, the Food Services sector had the lowest average (11.5 out of 100) of any of the eight sectors measured with smallest overall improvement.

Why is it so difficult for food service companies to go green?

One difficulty is obviously sourcing locally grown food. As Alice Waters discovered when she first tackled the Edible Schoolyard, it’s difficult to raise enough organic food to feed a large number of people. On average, organic food, because of the loss factor, takes at least 20-40% more land than conventionally raised food to generate the same harvest.

A recent segment on NPR described the challenges large institutional buyers face just trying to find enough locally grown food to feed their customers. In the interview John Cipolini who is in charge of every meal served at the University of Pennsylvania.noted:

“ We could probably single-handedly wipe out the free-range chicken population in Pennsylvania, if we decided to buy nothing but. Very quickly. Probably within a couple of days.”

So what can small restaurants do to decrease their carbon footprint? One remedy is featuring only seasonal produce. This may necessitate a chalkboard in lieu of a printed menu and some innovative recipes.

Large institutional buyers face greater challenges and it is getting worse.

The United States had 4.1 million acres of organic farmland in 2005, triple the amount in 1997, according to the Department of Agriculture, which regulates the organic industry. But farmers and grain buyers say the growth of new organic acreage has slowed, falling short of rising demand and causing organic grain prices to soar.

That is partly because prices for conventional corn, soybeans and wheat are at or near records, so there is less incentive for farmers to switch to organic crops;

“There has been no new surge of land going into organic,” said Lynn Clarkson, who buys organic grain as president of Clarkson Grain in central Illinois. “We are having to compete with this ethanol juggernaut,” he added, referring to the growing use of field corn for fuel.

For now ecopreneurs have the edge. Creative cookery, a commitment to buying in season and devotion to a “deep green” audience can still pay dividends even as prices for organics rise.

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Spoken like a true social entrepreneur, I told Jacob when I spoke with him this week.

Ecolabeling.org addresses the challenge that many of us have: What do all of these certifications, seals of approval, standards and verifications actually mean. Is it truly green or is it just greenwashing? The independent database of over 300 labels (and growing) seeks to provide a one stop site for information on all types of green labels.

The goal of the site is to make it easier for people to make green choices. Ecolabelling.org and its blog provide up to date information and metrics on ecolabels around the globe arranged by type and region.

“The biggest interest in green products is shown by ‘mini van Moms’”, explains Malthouse. “And they don’t have time to research the labels on every product they buy.”

I can attest to that!

We started this site because the sheer number of labels can be enough to make your shopping trolley spin. We found ourselves asking who’s deciding what’s green, and what do these labels actually mean?

Malthouse and his team have three goals for their site.

1. Provide information that is useful
2. Provide information that is neutral and inclusive
3. Share the data wherever it makes sense

I thought I’d start by finding out if they were reaching their first goal. Does the site provide useful information? A search on their site for Whole Trade Guarantee, a label prominently displayed on products at Whole Foods Markets, I found a brief explanation from the Whole Foods site and a link to it, as well as, a yet to be completed template of information about the label.

O.K. That’s more than I knew before. But, Malthouse and his team obviously have some work to do. He admits, they are still in start up stage, still growing. The volume of work ahead of them is somewhat daunting actually.

Part of the plan is to make ecolabeling.org an interactive site, one in which users of green products play a role. He hopes that as word gets out users will contribute more information and make this a central clearinghouse for green label information.

I hope so too!

Pressing him on the how he will make money issue, Malthouse mentions the possibility of a non-profit or a “solutions” based for–profit.

“I’m not sure”, he says, “Opportunities to capitalize will come up”. And that to a large extent is what defines a social entrepreneur. A twist on the common adage, “Do what you love and the money will come,” social entrepreneurs do what does good and feel confident they will be rewarded.

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A walk down the aisles of Kroger or Safeway or any chain grocery store confirms this as natural and organic section signs pop up in spots previously reserved for salty snack foods and frozen sugar laden sweets. Packaging is shrinking. Light bulbs are energy saving. And the words “eco” and “green” leap out at consumers at every turn.

Obviously the retail grocery industry has gotten the message. An article in Progressive Grocer gives some insight into what’s next on the agenda.

Switching to high-efficiency bulbs to light your supermarket is laudable, but it’s hardly cause for the PR department to sound the trumpets. As marketers, we’re interested in initiatives that we can brag about.

What could that be? Chain grocers are nothing if not smart business people. In an era of high fuel costs, as well as, an interest in greener options the obvious but more headache producing choice is sourcing local.

….the mother lode in green marketing for retailers may be found in the phenomenon of local production. Consumers are convinced that it’s better for the environment, and that it tastes better, too. True or not, it’s nonetheless a golden formula.

Heavy sourcing of local, seasonal produce can allow large “Eat Local” displays of well-priced, flavorful food. Additionally, POP brochures can lead shoppers to other locally grown foods throughout the store.

Chain stores used to headquarters driven buying and unused to working with smaller vendors may find this initiative a wee bit challenging. That’s where a smart eco entrepreneur can benefit.

The opportunities are varied. One option suggested in the article pairs local producers with major package goods companies, something that will definitely appeal to big brands fear of being left on the sidelines in the “Eat Local” era.

For example, a cooking brand’s recipes can call for local produce, or sampling events can serve up a branded ice cream topped with seasonal fruits grown nearby. All it takes is some smart partnerships with food brands eager to exploit consumer demand.

Ecopreneurs in local food production, who provide sampling services or who can act as middle men in these types of ventures have a golden opportunity to capitalize on the “Eat Local” movement as it moves into chain grocery.

Are you involved in any of these areas? How do you see this trend impacting your business? Where do other opportunities lie?

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Green entrepreneurs of every stripe face similar business challenges.

How to write a marketing plan.

How to handle inventory.

And in a tighter money era, how to find financing.

Fortunately for green tech entrepreneurs, leaders in the field seem willing to provide assistance (as well as competition). As reported in Information Week:

Microsoft plans to work more closely with independent software developers to help them build applications that don’t draw CPU cycles unnecessarily.

Microsoft, has been on a tear this year rolling out green initiatives. From providing bus service to its headquarters from downtown Seattle to building a new processing center in Quincy, Washington, “because it was three power poles away from a hydroelectric dam,” eco considerations have been, if not front and canter at least a big part of their business planning. Cornerstone to their eco considerations is the (semi) new Vista operating system.

On the tech front, the company’s Windows Vista operating system includes energy management features that are superior to those found in the older Windows XP, according to Bernard. Among them: a feature that, after a set period, puts Vista to sleep instead of activating an energy-consuming screen saver.

All told, Microsoft introduced 35 new energy management features in Vista, according to Rob Bernard, Microsoft’s chief environmental strategist.

Microsoft’s commitment to green can mean big changes in the technology green space. As in any industry, when the big players enter or increase their presence, the game changes in both positive and negative ways.

How do you see this changing your business strategy? Do you see this as a positive or negative for your green technology business?

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Raymond F. Palmer said the study showed — for the first time in scientific literature — a statistically significant association between autism risk and proximity to the mercury source

Scary stuff. Parents and some in the medical field have, for some time, been concerned about mercury’s connection to autism. This of course led to questions about the mercury used as a preservative in childhood vaccines and its eventual removal…more or less.

Apparently parents concerns were justified. But, even if you don’t live near a mercury emitting industrial site, is your child still safe?

Dr. Robert Sears, well known parenting experts and author of a variety of books on parenting asks the question:

What About Vaccine Mercury?

What? Is there still mercury in vaccines? I thought it was all removed in 2002? At least I asked this question. I thought it had been eliminated. Well, not quite.

… mercury is still found in large quantities… in some brands of the flu shot and some older versions of the plain tetanus and diphtheria/tetanus shots. A few shots use mercury in manufacturing, then go through a filtering process that removes 99% of it, leaving a tiny little trace amount of mercury. These shots include one brand of the DTaP vaccine, some brands of the flu shot, and the newer plain tetanus or diphtheria/tetanus shots.

If you, like I, follow some form of alternative vaccination schedule or if you vaccinate selectively or completely, this is information you will want to know. Even if you choose not to vaccinate, you may find yourself considering giving your child the flu shot or even more likely a tetanus shot. Both of these shots are likely to contain mercury or been manufactured using mercury.
Just one more thing to worry about.

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Slate.com, tracking the emissions of the torch, reports that… Through Thursday’s stop in Canberra, the relay has traveled an estimated 40,875 miles, burned 220,725 gallons of jet fuel, and released 5,270,913 pounds of CO₂.

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That’s what a new project at Sun Microsystems is trying to find out. This new initiative attempts to measure the carbon footprint of individual e-mails with the hope of being able to quantify it for individuals and companies.

Email is a great application to try and measure the carbon footprint of, because it is universal and there are billions being sent everyday,” said Richard Barrington, head of sustainability and public policy at Sun in the UK. “It is not an easy task but we are looking at the mail servers, the different software applications used, the network devices and trying to extrapolate the energy used back to the email itself.”

While it is a given that electronic communication is better for the planet than older ways of communicating, it is useful to try to determine the actual carbon emissions associated with the IT systems involved in producing it. What quantity of energy is used to fuel IT equipment? Are some systems more efficient than others? How does choice of software and hardware impact the carbon footprint of electronic communication.
Sun hopes to determine best practices that lower carbon emissions and enable companies to benchmark their practices to the best in the industry.

“There is a tendency to always see IT as additional,” (Barrington) explained. “For example, when Amazon emerged everyone said it would kill bookshops, yet the renaissance in reading it helped build means many bookshops are still thriving. That’s no bad thing, but it does have an environmental impact because the IT was additional to a business model. We need to look more carefully at areas like email, where genuine substitution with other less environmentally friendly measures can take place.”

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New filings with the U.S. Patent and Trademark Office in 2007 topped 300,00 beating the previous record of 289000 in 2000, driven in part by new marks for eco-friendly products. The word GREEN was the most popular vehicle for communicating environmental friendliness. Applications more than doubled in 2007, increasing from 1100 to over 2400.

GREEN and CLEAN had a particular appeal because it’s easier to coin a short brand name or concise tagline with a one-syllable word than a long word. The two-syllable prefix ECO was also hot in 2007, more than doubling in popularity to nearly 900 new applications.

Beyond the obvious green and eco-terminology there was increased interest in trademarks applications for “organic.”

The green trend was accompanied by a big jump in marks that contained the word ORGANIC, rising 57% from 450 to 700. Interest in organic products registered across the board. Only about 1/3 of the applications containing the word ORGANIC covered food products, and less than 10% covered beverages.

In fact, it was the third year in a row when GREEN branding far outpaced the overall increase in applications

All of this activity, from companies large and small means it will become more difficult to position a brand as “environmentally friendly.” We’re moving into the next stage where differentiating AMONG green products is going to be the prime concern of consumers.

If you haven’t already, now is the time to take a look at your product or service and focus on your positioning against green competitors…because there are apparently going to be a lot of them.

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Recently they started tracking shoppers’ green buying habits. Actually all retailers track products their consumers purchase for inventory control. Wal-Mart however was one of the leaders in using this data to tightly control inventory and share information with manufacturers. They retain leadership in this area with RFID tracking systems and well managed JIT manufacturing cooperative programs with their vendors.

Now Wal-Mart is sharing some of this information with the world with the Wal-Mart Live-Better Index .

In April 2007, Wal-Mart selected 5 products to follow to assess the increase in adoption green products: Fluorescent light bulbs, organic milk, Concentrated/reduced-packaging liquid laundry detergents, extended-life paper products and organic baby food. A year later sales of these items had increased by 66%.

The Environmental Leader reports:

As a whole, Wal-Mart says that adoption rates of the five sustainable Live Better products have increased significantly over the past year:

1. Compact fluorescent light (CFL) bulbs - Average adoption rate of 19.7 percent (up from 13.39% in 2007)
* Delaware leads the category with an adoption rate of 25.8 percent

2. Organic baby food and formula - Average adoption rate of 4.12 percent (down from 4.31% in 2007)
* California continues to lead the category with an 8.58 percent adoption rate

3. Organic milk - Average adoption rate of 1.58 percent (up from 1.15% in 2007)
* Virginia has the highest adoption rate of organic milk at 2.7 percent

4. Extended life paper products - Average adoption rate of 67.5 percent (up from 50.77% in 2007)
* Minnesota has the highest adoption rate with 78.1 percent

5. Concentrated/reduced-packaging liquid laundry detergents - Average adoption rate of 76.3 percent (up from 22.86% in 2007)
* Oklahoma leads the category with an adoption rate of 96.3 percent

For eco-entrepreneurs this is valuable information. As Wal-Mart adds more categories and tracks how a declining economy affects sales of sustainability products, green entrepreneurs have yet a another source of information for effectively managing their own inventory and production plans.

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Though originally started as meaning, turn-off the TV, it has now spread to include all screens- TV, computer, video game, etc. That’s a lot of things to turn off.

Beyond the obvious benefits of spending less time in front of the tube, such as increased productivity, more social interaction and for kids…better grades and a more active lifestyle, there are other green and money saving benefits.

Energy Saving:

Though it often doesn’t seem like a lot, electronic entertainment systems do consumer energy. In a typical family, the TV is on up to 7 hours per day. A computer or two or three may be plugged in 24 hours a day and used an hour or two or more. Add to that the energy used to power an external monitor, a video game system and other electronic toys and you can see how that can add up.

You can check the energy you use for your various screens here or see what the average household uses here.

Saving the Planet

More importantly, at least for those of us concerned about saving the planet for future generations is teaching children to care for the earth. One of the best ways to do that is to have them develop a personal stake in keeping saving the planet. The greater the connection they have with nature, the more likely they are to want to preserve it. Encouraging them to play outside is the best way to instill that need.

Richard Louv, author of, Last Child Out Of the Woods, describes it best in this interview with Salon.com.

Certainly the explosion of technology over the last 25 years — from cable TV, to video games, home computers and the Internet — has curtailed the amount of time kids spend playing outside each day. But during that same time, hasn’t society as a whole become much more aware of environmental issues?

I say early in the book that it’s more like the polarity has reversed. When I was a kid I had an intimate knowledge of woods and fields, to the extent that I pulled up hundreds of survey stakes to protect them from bulldozers. I really had a sense of ownership — I had no clue that my woods were connected to other woods ecologically. It’s the reverse now. Kids today can tell you lots of things about the Amazon rain forest; they can’t usually tell you the last time they lay out in the woods and watched the leaves move. It’s not that learning about the Amazon is bad — it’s great, and I’m glad it’s happening — the problem is, it becomes an intellectualized relationship with nature. And I don’t think there’s much that can replace wet feet and dirty hands. It’s one thing to read about a frog, it’s another to hold it in your hand and feel its life.

So turn off the screens and go outside. It’s better for you and better for the planet!

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SCA poll by Harris Interactive, conducted in the beginning of April, found that consumers were definitely willing to pay more for green products…up to almost 20% more.

Good news for green businesses. But, take a little closer look at the findings.

64% of those surveyed said they would be willing to pay more for a hybrid car

63% indicated they would spend more for organic, fair trade, or locally sourced food

62% said they would dig deeper into their wallets for green/organic cleaning supplies

57% of those surveyed said they would pay the additional costs for products made from recycled materials.

Obviously purchasing a hybrid car has less to do with being environmentally conscious and more to do with saving money. With gas prices souring, consumers are willing to try anything they can to save on gas.

The next two, though they are green initiatives, they also address health issues. Consumers are willing to pay more and cut back in other areas if their own or their family’s health is at stake.

The last point, addressing consumers’ willingness to pay extra for products made from recycled materials, may be the most vulnerable to inflationary pressures.

Since this survey looked at willingness to purchase, as well as current purchase behavior, the results may only be indicative of consumers hopes, not necessarily their behavior. The survey found that, in a representative sample of the population, close to half of all consumers would be willing to pay more for green products.

The question remains…which half?

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• 47 percent trust companies to tell them the truth in environmental messaging
• 45 percent believe companies are accurately communicating information about their impact on the environment
• 61 percent of Americans say they understand the environmental terms companies use in their advertising

The survey found that almost half of those surveyed believing that anything marked “green” or “environmentally friendly” was good for the environment. Not quite a quarter really understood use of the terms in any meaningful way. (Who were these guys? I’m not sure I understand!)

“The gap creates significant risk of embarrassment for companies and disillusionment for consumers,” says Mike Lawrence, executive vice president of corporate responsibility, Cone LLC. “Activists are closely monitoring green claims and can quickly share information online about the actual environmental impact of a product. The result can be accusations that a company is engaging in ‘greenwashing’ and is misleading the public.”

Fortunately for eco-entrepreneurs, consumers seem to be interested in policing the use of misleading terms. The survey found that consumers want regulation. Over 75% want certification by third party organizations and/or government regulation.

That puts large and small manufacturers and consumers on the same page. Just in time for the FTC, Eco In The Market workshop on April 30th. The results should be interesting.

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Will companies pull back from risky projects? Or will they re-jigger their efforts to support products that thrive in a recession…new or not.

Suddenly, innovation has a bull’s-eye on its back. As the recession debate shifts from “what if” to “how long,” claims a recent article in Business Week on the world’s most innovative companies.

Green entrepreneurs have no choice. Innovation is why they are in business. But, what strategies make the most sense for eco-friendly businesses facing a not-so-friendly economy?

Professor Scott Shane, writes about Four Mistakes Entrepreneurs Make in a Recession. How do these apply to green businesses?

1.Failing to take advantage of decreasing costs. Most businesses are both suppliers and customers at the same time. When demand slackens, your suppliers are hurting too. So often you can strike a better deal to cut your costs by paying your suppliers less or hiring better people at a lower cost.

Understanding this basic concept and being willing to bargain with your suppliers holds true for eco entrepreneurs too. But, because we often have few suppliers from which to choose recessionary times are those when it is important to evaluate the health of those suppliers and either seek out new ones or consolidate your business with the strongest.

2. Thinking the only way to increase demand is to cut price. Price cuts aren’t the only way to stimulate demand, and they aren’t the best approach for entrepreneurs. On average, entrepreneurs are more successful when they compete on service, quality, or something other than price.

Price cutting is a strategy that works best in a very competitive environment when there are easily substitutable products. That’s not often the situation in which a green entrepreneur finds him or herself. On the other hand, there is a “tipping point” a price at which a consumer won’t pay more for a better quality or greener product. That point may be dropping in your product category so it’s worth doing some research to see at what price the consumer isn’t willing to pay to go green.

3. Failing to recognize increased competition. In a recession, competition accelerates because more businesses are chasing less total demand. In addition, when unemployment rises, people start businesses …further increasing competition. So the need to have a competitive advantage is even more important in a recession than in a booming economy.

Recessions are well known as a time when down sized executives and laid off workers start businesses. Green is hot so many of those companies will be selling eco friendly products. Just as competition increases from large mainstream companies, it is also increasing from small start-ups. This is the time to ensure that you have a strong unique positioning and are promoting that differentiation at every opportunity.

4. Forgetting that some products, or even whole businesses, are counter cyclical. When customers cut back on their spending, they often substitute one product for another. For instance, in a recession, people might cut back the number of steak dinners that they eat out. But, … increase their purchase of cheaper foods, like pasta, making pasta a counter cyclical product. So, entrepreneurs need to avoid assuming that demand for everything goes down in a recession.

Many green products should actually do very well during this downturn. Though you may have been promoting your company’s products as eco friendly if they are also money saving, now is the time to emphasize that benefit. Products and services that are both are sure winners in this economy.

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Photo Courtesy: aturkus on Flickr under Creative Commons License