Entrepreneurship in Rural America

Entrepreneurship in Rural America

By Nicole Seymour

America's rural communities have long faced significant challenges and disadvantages. They are among the poorest areas in the United States, they often have very low levels of educational attainment, and they tend to have difficulties competing in a business market dominated by corporations from metropolitan areas. However, both rural and national leaders have recognized that entrepreneurship can be a key solution to many of the economic difficulties in rural communities. Currently, numerous resources and programs, from funds to Web sites to classroom simulations, are available to provide assistance and guidance to rural entrepreneurs.

A Stage Set for Entrepreneurship

Though rural areas have historically faced economic upheaval and uncertainty, much of it dating back to the Civil War, they have more recently faced financial difficulties brought on by "structural changes in declining sectors like coal mining, manufacturing and textiles" (Appalachian Regional Commission, 2000, p. 2). Another problem is the closing of local branch plants. According to Jesse White, federal co-chair of the Appalachian Regional Commission, companies open branch plants in rural communities in search of low-wage workers who often "hitch their economic fortunes" (as cited in Daffner, 2001, ¶ 2) to the companies. When tempted by the prospect of even lower cost structures, often in foreign countries, these plants shut down, taking jobs and the community's well-being with them.

Due to the demographics of rural regions, rural entrepreneurs face challenges not usually associated with entrepreneurship in larger population centers. According to the proceedings from the "Tools for Entrepreneurship Conference," enterprising rural citizens are plagued not only by a poverty-stricken

market and their own poverty, but also by the fact that their hometowns usually "suffer from a shortage of equity capital" and have little outside investment (Appalachian Regional Commission, 2000, p. 2). Further, rural areas tend to undergo "brain drain," whereby the best and brightest young people take their ideas, labor and energy to other areas, leaving their native regions devoid of both the talented workers and business leaders needed to launch new ventures (Appalachian Regional Commission, 2000, p. 2).

Though these may seem like wholly unfortunate circumstances for rural communities, they actually represent ripe opportunities for entrepreneurial development. Due to the decline in plant and factory jobs, rural citizens may see it as their best option to create their own economic opportunities through entrepreneurial undertakings. Also, entrepreneurship by rural citizens often creates jobs that will employ and develop the local workforce. As White states, a "'home-grown' business is more likely to stay put and reinvest in the community" (as cited in Daffner, 2001, ¶ 3), without putting control or profits into the hands of outsiders with little stake in the area's economic vitality.

Assisting Rural Entrepreneurs

Programs to assist rural entrepreneurs are sponsored by a host of governmental and private organizations, and tend to focus on skills training and financial support. One example of a financial support program is the concept of the revolving loan. The Puget Sound Business Journal notes that more than 40 revolving-loan funds, created by teams of banks, corporations, foundations, agencies and individuals, operate in rural areas in Washington (as cited in Erb, 2001, ¶ 2). These loans tend to be $30,000 or less and are payable in 3.5 years. According to George Erb (2001), the impressive performance of these funding programs - most report miniscule default rates and the generation of hundreds to thousands of jobs - is due to the fact that they do not simply throw money at rural entrepreneurs. The loans are administered under the auspices of fund managers, many of them rural citizens themselves, who are committed to the goal of generating more jobs in rural areas. Fund managers "carefully [screen] prospective borrowers and closely [advise] them about their business" (¶ 10) to help ensure their success.

The Women's Rural Entrepreneurial Network (WREN), a non-profit New Hampshire-based association, promotes entrepreneurship among rural women. According to their Web site, WREN "encourages women and girls through an exchange of resources, the development of community, the opportunity to gain new skills and the achievement of economic independence" (WREN, 2001). Their resources include an online member business directory, a virtual shopping mall that sells WREN-member products, links to entrepreneurial support and resources, and a message board that includes calls for business partners, employees and donations. WREN offers members the use of their technology center, which houses training workshops and resources like computers, copiers and printers, digital cameras and other technologies that rural entrepreneurs may not be able to access.

Preparing Future Rural Entrepreneurs

A vital aspect of successful rural enterprise is preparing the next generation of citizens (students and children) for the challenges and possibilities of starting businesses in their communities. One reason why this type of training should be concentrated at the school-age level is that it strengthens student achievement and teaches students about citizenship (Boethel, 2000). But perhaps the more pressing concern in terms of rural students' specific environment is the fact that the difficulties faced by rural regions as a whole mean that rural schools "in turn suffer from the drain of dollars and of population" (Boethel, 2000, ¶ 1). Thus, by making entrepreneurship a major curriculum focus, rural schools can begin to rectify this problem on a long-term basis. Students who receive entrepreneurship training are better able to "identify and create business opportunities [rather than receiving vocational training for one specific, often limiting skill or occupation] as well as develop the skills needed to implement them" (Boethel, 2000, ¶ 4).

REAL (Rural Entrepreneurship Through Action Learning) Enterprises is an organization dedicated to providing entrepreneurship training. REAL strives to prepare learners to be "active, self-sufficient, and productive citizens who will contribute to their community's social and economic development" (REAL Enterprises, 2001). The REAL program provides entrepreneurship education in 33 states at 140 elementary and middle schools, 250 high schools, 69 community or technical colleges, 4 universities and 18 community-based organizations. The courses range from Mini-REAL, in which elementary school-aged classes, grades or entire schools hold a variety of jobs within a model community, to REAL 21st Century Business, a high school Internet business planning course that can be taken online. REAL is operated out of 12 member organizations (North Carolina REAL, Washington state REAL, etc.) and through individual instructors who become accredited by attending fee-based institutes and workshops throughout the country (REAL Enterprises, 2001).

Programs such as REAL and the existence of organizations such as the Appalachian Regional Commission indicate that, although rural areas and individual entrepreneurs face unique hardships, they also have unique resources designed to encourage and support their growth. While rural communities may continue to lag behind in terms of national scores, employment rates and earnings, continued entrepreneurial enthusiasm and the formation of more resources can only work to strengthen these regions.

References

Appalachian Regional Commission. (2000, September). Tools for entrepreneurship. Building new economies in rural America (conference proceedings). Washington, D.C.: Appalachian Regional Commission. (c20013553)

Boethel, M. (2000). Rural student entrepreneurs: Linking commerce and community. Benefits2: The exponential results of linking school improvement and community development, Issue 3. Austin: Southwest Educational Development Laboratory. Retrieved December 2001: http://www.sedl.org/prep/benefits2/issue3/ (c20011873)

Daffner, R. (2001). Entrepreneurship vital to rural America's future. Entrepreneurship education. Retrieved November 2001: http://entre-ed.org/arc.htm (c20013551)

Erb, G. (2001, August 10). Revolving loans help rural entrepreneurs open doors. Puget Sound Business Journal. Retrieved December 2001: http://seattle.bcentral.com/seattle/ (c20013722)

REAL Enterprises. (2001). REAL Enterprises. Retrieved December 2001: http://www.realenterprises.com (c2002062)

Women's Rural Entrepreneurial Network (WREN). (2001). The Women's Rural Entrepreneurial Network. Retrieved December 2001: http://www.wrencommunity.org (c20012440)

*CELCEE numbers are in parentheses

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CELCEE is an adjunct ERIC Clearinghouse funded by the Kauffman Center for Entrepreneurial Leadership.

Products Disclaimer: The Kauffman Center for Entrepreneurial Leadership does not warrant any of the contents in any manner. The information contained is intended only for educational purposes and information contained in the work product is not intended to be legal or professional advice to the user.

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CELCEE

Kauffman Center for Entrepreneurial Leadership

Clearinghouse on Entrepreneurship Education

4801 Rockhill Road

Kansas City, MO 64110-2046

Phone: (888) 423-5233

Website: http://www.celcee.edu

December, 2001. DIGEST Number 01-08

It is time for money to grow on trees

It is time for money to grow on trees

18 July 2007

World Conservation Union calls for a greater appreciation of the role of forests in combating climate change

The fight against deforestation should be rewarded with financial incentives.

That was the message from a meeting organised by the World Conservation Union (IUCN), the United Nations Environment Programme (UNEP) and the Convention on Biological Diversity on July 11 in Paris.

Encouraging countries to preserve existing forests with financial incentives would not only ensure more trees to soak up greenhouse gases, it would also be a big bonus for biodiversity conservation, according to IUCN.

Now it is hoped that the idea will be taken up seriously by the United Nations climate change conference in Bali later this year.

The idea of rewarding avoided deforestation was discussed as part of a joint initiative by IUCN and UNEP to make beneficiaries of ecosystem services (such as the absorption of carbon by forests) pay for their sustained provision.

Under the proposal, known as Reduced Emissions from Deforestation Degradation (REDD), a cutback in forest loss would become a new option for complying with international climate change regulations.

It would also mean that countries reducing deforestation could receive carbon credits, which are currently emerging as a significant global market. In this way, it is hoped that financial rewards for emissions reductions will motivate states to keep their forests, rather than clearing them for other land uses such as agriculture.

The idea is not without its problems, however, which include the risk that the scheme might simply move the problem of deforestation elsewhere in the world to places where it would still be more financially viable to clear forests or where states are not capable of enforcing compliance with REDD policy.

There is also concern over how the money paid to governments would trickle down to the local level and influence the livelihood decisions of people who live in and depend directly on forests for their well-being.

At the meeting it was concluded that biodiversity conservation had a lot to gain if REDD is included in the UN framework on how to tackle climate change.

For more information contact:

David Huberman, Economics and the Environment, IUCN;
e-mail: david.hubermaniucn.org; phone: +41 22 999 0308

Women Entrepreneurs in the Developing World

Women Entrepreneurs in the Developing World

By Nicole Seymour

Throughout the developing world, approximately 100 million women are employed in industries, from clothing manufacturing to food processing (UNIDO, 1995a, 1995b). These women face unique work-related challenges based not only on their gender, but also the quality of their nations' resources. While many of these women are entrepreneurs, they are often unable to become self-sufficient or to adequately support their families through entrepreneurship. However, in the past decade, several entities, from microlending banks to United Nations taskforces, have intervened to help enable women in developing nations become successful entrepreneurs and providers.

Challenges and Barriers

Entrepreneurs usually require financial assistance of some kind to launch their ventures - be it a formal bank loan or money from a savings account. Women in developing nations have little access to funds, due to the fact that they are concentrated in poor rural communities with few opportunities to borrow money (Starcher, 1996; UNIDO, 1995a). According to a report by the United Nations Industrial Development Organization (UNIDO), "despite evidence that women's loan repayment rates are higher than men's, women still face more difficulties in obtaining credit," often due to discriminatory attitudes of banks and informal lending groups (UNIDO, 1995b). Even in the advanced developing economy of Turkey, where 67% of female entrepreneurs have a university education, 41% of entrepreneurial women surveyed reported experiencing difficulty in obtaining loans (Hisrich & Ozturk, 1999). In developing nations, this lack of access to credit is often exacerbated by a lack of information on where credit can be sought and requirements for loans ("Women Entrepreneurs in Poorest Countries," 2001).

Women's family obligations also bar them from becoming successful entrepreneurs in both developed and developing nations. "Having primary responsibility for children, home and older dependent family members, few women can devote all their time and energies to their business" (Starcher, 1996, p. 8). Traditional gender role expectations and sexist attitudes in many developing nations make it even more difficult for women to relieve themselves of family responsibilities. At the Indian Women Entrepreneurs Conference in 1999, Hyderabad governor Dr. C. Rangarajan suggested that entrepreneurial opportunities for women would remain limited without attitudinal changes among men and family members. According the governor, "the real entrepreneurial spirit of women can assert itself only if they break out of the traditional mould and decide to venture out" (as cited in "India - 'Attitudinal Change Must for Success'," 1999, ¶ 5).

Many women in developing nations lack the education needed to spur successful entrepreneurship. They are ignorant of new technologies or unskilled in their use, and often unable to do research and gain the necessary training (UNIDO, 1995b, p.1). Although great advances are being made in technology, many women's illiteracy, strucutural difficulties, and lack of access to technical training prevent the technology from being beneficial or even available to females ("Women Entrepreneurs in Poorest Countries," 2001). According to The Economist, this lack of knowledge and the continuing treatment of women as second-class citizens keeps them in a pervasive cycle of poverty ("The Female Poverty Trap," 2001). In short, uneducated and untrained women in developing nations face significant challenges and barriers in providing for themselves and their families, or in efficiently developing new or independent enterprises as means of support.

Positive Developments

Although the above challenges and barriers are typical for women in developing nations, many groups are realizing the importance of helping these women overcome them. The Economist notes that "educating more women in developing countries…is likely to raise the productive potential of an economy significantly" ("The Female Poverty Trap," 2001, ¶ 5). Starcher (1996, p. 8) states that, to some, women in the developing world "are considered as the best hope for lifting their families and villages out of poverty". According to the Third United Nations Conference on Least Developed Countries, all sectors of society, both national and international, must tackle the problems faced by women entrepreneurs because of the potential benefits of their success for entire nations ("Women Entrepreneurs in Poorest Countries," 2001).

One group addressing these problems is UNIDO, which recognizes that women's entrepreneurial aspirations are hindered and undertakes long-term training projects in foreign countries to alleviate the challenges women face. One of UNIDO's most impressive undertakings has been assisting the women of Tanzania in becoming successful entrepreneurs in the food industry, a project it first undertook in 1994. It addressed the constraints on women in this industry through skills development via courses, manuals and a team of trainers; monitoring trainees and enterprises; promoting enterprise networking; market development; and offering general support services. One of the project's major accomplishments was the development of the Tanzanian Food Processors Association, which linked female entrepreneurs together and allowed them to develop a trademark brand of food products, which are currently sold throughout the country. To date, 66% of the women involved in the Tanzanian project started new businesses, and 34% expanded existing businesses. In addition, hundreds of new local jobs for women were created (Salazar, 1999).

Many financial institutions, realizing the positive impact of helping female entrepreneurs get started, are employing the innovative concept of microcredit. Microcredit (lending small sums to poor people to set up or expand small businesses) has been shown to be an effective way to alleviate poverty, as the poor usually cannot borrow from commercial banks due to lack of collateral ("Africa's Women Go to Work," 2001). Approximately 14 million people now borrow from microlenders, a number that has increased by over 80% in the past two years ("Africa's Women Go to Work," 2001).

Since the 1970s, organizations such as Grameen Bank of Bangladesh have helped many in developing nations start their own businesses. In the Grameen model, a member of a group of rural women takes out a microloan to start up an enterprise. The next woman in the group can borrow only when the previous has repaid, thus, community pressure minimizes default rates ("Africa's Women Go to Work," 2001).

Although microlenders do face several problems, such as lack or inability of guarantors to back up borrowers and a general need for more capital in order to satisfy increasing demands, females seem to actually have greater access to microloans than men. Females make up the overwhelming majority of microborrowers assisted by organizations like Grameen Bank (http://www.rdc.com.au/grameen/home.html). According to The Economist, microlenders prefer lending to women because they are likely to use additional income to feed and clothe their children, thus improving community well-being, whereas men are more prone to use the money for entertainment or alcohol ("Africa's Women Go to Work," 2001).

Further Implications

Besides the economic benefits of women's successful entrepreneurship, there are also social and community benefits. One is that expertise and experience are usually perpetuated and passed on, making others successful as well. For instance, participants in a garment-making training process in Kenya "shared their know-how with employees, apprentices and family members, who have in turn trained others" (United Nations Division for Sustainable Development, 1999, ¶ 2). According to The Foundation for International Community Assistance (FINCA) Web site, "microentrepreneurs know that if one member's business attracts customers to the neighborhood, all are likely to benefit" from the increased opportunity and economic vitality (Error! Hyperlink reference not valid.). FINCA also notes that enabling women to help themselves through entrepreneurship raises their sense of self-worth, making them even more eager to be productive members of society. These benefits indicate the worthiness and viability of assisting entrepreneurial women in the developing world, though multiple challenges still exist. Greater and continued support for entrepreneurial activities is needed to further improve the lives of these women and the condition of their communities.

References

"Africa's women go to work." (2001, January 13). The Economist. Retrieved January 12, 2001 from LEXIS-NEXIS Academic Universe: http://www.lexis-nexis.com/universe/ (c20011896)

Hisrich, R. D., & Ozturk, S. A. (1999). Women entrepreneurs in a developing economy. The Journal of Management Development, 18(2), 114-124. (c20010014)

"India - 'Attitudinal change must for success of women entrepreneurs'." (1999, April 27). The Hindu. Retrieved May 10, 1999 from LEXIS-NEXIS Academic Universe: http://www.lexis-nexis.com/universe/ (c992287)

Salazar, T. (1999). Tanzanian women entrepreneurs: Spearheading development in the food industry. Vienna, Austria: United Nations Industrial Development Organization. (c20012665)

Starcher, D. C. (1996). Women entrepreneurs: Catalysts for transformation. Retrieved July 6, 2001: Error! Hyperlink reference not valid. (c20012695)

"The female poverty trap." (2001, May 8). The Economist. Retrieved March 14, 2001: http://www.economist.com (c20012022)

United Nations Division for Sustainable Development. (1999). Women entrepreneurs. Retrieved July 6, 2001: http://www.un.org/esa/sustdev/women.htm

United Nations Industrial Development Organization (UNIDO). (1995a). "Women, industry and entrepreneurship." Women in Industry Series. Vienna, Austria: author. Retrieved July 6, 20001: http://www.unido.org/doc/150401.htmls (c20012668)

United Nations Industrial Development Organization (UNIDO). (1995b). "Women, industry and technology." Women in Industry Series. Vienna, Austria: author. Retrieved July 6, 2001: http://www.unido.org/doc/150401.htmls (c20012666)

"Women entrepreneurs in poorest countries face formidable challenges, including lack of training, credit, say speakers at Brussels forum" [Press release]. (2001, May 21). Retrieved July 6, 2001: http://www.un.org/News/Press/docs/2001/dev2331.doc.html

*CELCEE numbers are in parentheses

CELCEE is an adjunct ERIC Clearinghouse funded by the Kauffman Center for Entrepreneurial Leadership.

Products Disclaimer: The Kauffman Center for Entrepreneurial Leadership does not warrant any of the contents in any manner. The information contained is intended only for educational purposes and information contained in the work product is not intended to be legal or professional advice to the user.

CELCEE

Kauffman Center for Entrepreneurial Leadership

Clearinghouse on Entrepreneurship Education

4801 Rockhill Road

Kansas City, MO 64110-2046

Phone: (888) 423-5233

Website: http://www.celcee.edu

August, 2001

DIGEST Number 01-04

Crafting "Enviropreneurial" Value Chain Strategies

Crafting "Enviropreneurial" Value Chain Strategies Through Green Alliances

Enviropreneurship deals with the alliance between business and ecological factions to create corporate policies that benefit the environment. Cathy L. Hartman and Edwin R. Stafford discuss the implications of this entrepreneurial innovation.

• Having an enviropreneurial focus brings a state of good will and cooperation among various groups and people. Having the support of an environmental group can provide good publicity and reputable standing for a business.

• Addressing environmental concerns can save companies trouble in the future, as government legislation may restrict environmentally-hazardous behavior anyway.

• Enviropreneurial programs can improve the efficiency of corporate operations. These environmentally-conscious practices encourage innovation in terms of depleting wastes and other harmful materials. One train of thought is that pollution prevention is more cost-effective than pollution cleanup.

• Green alliances will bring environmental concerns to the forefront. They will further open the door to other ecologically-safe technologies, increasing awareness for the necessity of such endeavors.

Merging Economic and Environmental Concerns

Merging Economic and Environmental Concerns Through Ecopreneurship

by Gwyer Schuyler

A new term has been coined for entrepreneurs whose business efforts are not only driven by profit, but also by a concern for the environment. They are called ecopreneurs. Also known as environmental entrepreneurship and eco-capitalism, ecopreneurship is becoming more widespread. This digest will briefly discuss the context in which ecopreneurship has blossomed and present examples of ecopreneurship. In conclusion, organizations concerned with ecopreneurship, and more generally, the linkage between the economy and the environment, will be reviewed.

Ecopreneurship has grown as a new strategy within the environmental movement. For the past twenty-five years, attention to the environment has been directed through laws and regulations (Anderson & Leal, 1997; Baden & Noonan, 1996). This regulatory approach used the threat of penalty to further the environmental cause. While there has been progress through this approach, some in the environmental community have experimented with economic incentives and market-based approaches to alleviate environmental problems. Ecopreneurship is one market-based approach in which opportunities are identified for improving environmental quality, and then these opportunities are capitalized upon in the private sector for profit.

Anderson and Leal (1997) define ecopreneurship as "entrepreneurs using business tools to preserve open space, develop wildlife habitat, save endangered species, and generally improve environmental quality" (p. 3). Most ecopreneurial endeavors begin at the local level, addressing a community environmental problem or need. While the authors stipulate that ecopreneurship is not a panacea for global environmental problems, they point out how ecopreneurial solutions to small, local problems can "provide the foundation for thinking innovatively about bigger problems" (p. 4).

Ecopreneurship comes in many different forms. Some environmentalists may be suspicious of these approaches altogether, but one could argue that when there is a demand, the demand will be filled whether or not the business is environmentally friendly. From this standpoint, ecopreneurship is a "lesser of two evils." Moreover, in light of Hawken's (1992) poignant message that traditional business is destroying the world, ecopreneurship offers hope that business can instead play a role in restoring the planet (Hawken, 1992). What follow are examples of ecopreneurial approaches related to ranching, food sales and tourism and recreation that have been created to reap both profits and benefits for the environment.

Examples of Ecopreneurship

A Truce between Wildlife and Ranchers

One ecopreneurial endeavor, the Theodore Roosevelt Memorial Ranch, has a mission to foster peaceful and productive coexistence between wildlife and ranching. In accordance, a wildlife research center has been created in conjunction with a profitable ranch. Serving as a model for other ranching operations, the Roosevelt Ranch helps maintain the balance between ranchers and animals that prey on livestock. By bridging this sometimes hostile relationship through wildlife research and management, the Roosevelt Ranch applies its ranching profit to a search for workable solutions that both the wildlife and the ranchers can live with (Baden, 1993).

Turning Waste into Food

Joseph Frank Crisafulli noticed local fisherman tossing aside the eggs of the paddlefish when they cleaned their catch. Every year, several tons of eggs were left on the banks of the Yellowstone River to rot. Crisafulli knew that paddlefish are the main source of American caviar, so he requested the help of the local Chamber of Commerce. The Chamber of Commerce recognized the financial possibilities, and set up an operation to clean the fishermen's fish for free in return for the paddlefish eggs. In 1990, the first season of the program's operation, workers cleaned 1,600 paddlefish and processed over 4,000 pounds of roe. Overall, the project has grossed $1,060,000 from caviar over a seven year period, with half of the proceeds going to fund community projects and half going to the state for paddlefish research and management (Anderson & Leal, 1997; "Environmental Entrepreneurs," 1996).

Attracting Tourists for the Environment

The Fossil Rim Wildlife Center, outside of Dallas, is a for-profit corporation that provides a sanctuary for endangered species, such as the white rhino, the red wolf, and the cheetah. The animals also serve as the main attraction to tourists. A drive-through tour, overnight "safari" camping, and a bed and breakfast lodge led to 1992 revenues topping $2.2 million. By catering to tourists, the owners of Fossil Rim can undertake invaluable research and breeding programs to save endangered species (Anderson & Leal, 1997; "Environmental Entrepreneurs," 1996).

Another example of ecopreneurial tourism and recreation is being utilized by state parks. Shrinking budgets and growing maintenance problems have demanded that parks become creative. In Ohio, parks have begun to provide rental services, supplying cots, coolers, cookstoves and tepees to campers. From these efforts, park revenues have almost doubled over six years. The Texas Park system has gone even further, establishing a mail-order catalog of cowboy hats, earrings, and other novelty items. Says one administrator for the Texas parks, "The spirit of the entrepreneurial budget system won't ever go away. . . . We can't go back to the old way, state money just isn't there any more." Out of necessity, state parks are becoming ecopreneurs in order to maintain their park lands (Ewing, 1997).

Conclusion

Surveys have shown that Americans are concerned with the environment. For example, three-fourths consider the environment a "high" priority and four out of five Americans consider themselves to be environmentalists or sympathetic to environmentalists (Baden & Noonan, 1996). This positive climate suggests many possibilities for ecopreneurs to both make a difference in the environmental movement and make a profit. This digest has profiled several unique ecopreneurial projects, but there are undoubtedly many untapped avenues for new projects. In response, educators in environmental and business fields should incorporate related ecopreneurship lessons into their courses (Samson, 1994). The message should be made clear that wherever there is an environmental need or problem, there is a potential ecopreneurial, symbiotic remedy.

Related Organizations

PERC, which stands for Political Economy Research Center, is a think-tank in Bozeman, Montana that focuses on market solutions to environmental problems. It has been at the forefront of what has become known as free market environmentalism. To learn more about PERC, visit its website at http://www.perc.org.

FREE, the Foundation for Research on Economics and the Environment, based in Seattle, also looks at the intersection of the market and ecology. This organization develops environmental policies and programs and offers conferences, workshops and written publications to spread their message of the compatibility of conservation and capitalism. Their web address is http://www.free-eco.org.

The Green Institute, located in Minneapolis, describes itself as a nonprofit economic development organization focused on sustainable enterprise. They sponsor many projects directed at simultaneously creating jobs and promoting environmentally sound business practices. They offer technical assistance to ecopreneurs and are opening the Phillips Eco-Enterprise Center, a business incubator facility to cultivate the environmental sector and sustainable commercial development. To learn more, visit http://www.greeninstitute.org.

References

Anderson, T. L., & Leal, D. R. (1997). Enviro-capitalists: Doing good while doing well. Lanham: Rowman & Littlefield Publishers, Inc.
c982474*

Baden, J. A. (1993). Looking for a Bill Gates of Environmental Policy. Available: http://www.free-eco.org/free/ST93/Entrepreneurship93.html.
c982466

Baden, J. A., & Noonan, D. S. (1996). The evolving environmentalism. Available: http://www.free-eco.org/free/pubs/DD.EE.html.
c982465

Ewing, T. (1997, February 11). Meet the new entrepreneur: State parks. Available: http://www.imt.net/~perc/parkwsj.htm.
c982463

Samson, K. J. (1994, Nov.-Dec.). Teaching environmental entrepreneurship. In Business, 16(6), 32-34.
c982490

* CELCEE NUMBER

CELCEE is an adjunct ERIC Clearinghouse funded by the Kauffman Center for Entrepreneurial Leadership. The opinions expressed herein do not necessarily reflect those of the sponsoring institutions, and no official endorsement should be inferred.

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CELCEE

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4801 Rockhill Road

Kansas City, MO 64110-2046

Phone: (888) 423-5233

Website: http://www.celcee.edu

December 20, 1998

DIGEST Number 98-8

CSR, Lupa (dan) Luka?

CSR, Lupa (dan) Luka?

by DaRu indriYo

Isu Corporate Social Responsibility (CSR) akhir-akhir ini menjadi “trade mark” tersendiri seiring dengan tuntutan konsumen yang semakin cerdas memilih produk dan menilai perusahaan yang mampu membuka pola manajemennya secara transparan. Pilihan ini adalah pilihan yang sangat realistis, karena di samping mereka membutuhkan produk yang berkualitas, konsumen juga menuntut kinerja perusahaan yang unggul baik dari segi produksi, sosial dan lingkungan.

Dari sebuah hasil riset ditengarai 35 % responden mengatakan komitmen perusahaan terhadap CSR akan menentukan sikapnya untuk membeli atau tidak produk-produk yang dikeluarkannya. Ada perusahaan minyak yang berbasis di Eropa melakukan CSR di Afrika dengan melakukan pendidikan usia dini, memberi pelatihan keterampilan kecakapan hidup (lifeskills) untuk remaja dan pemuda, serta membangun jaringan perdagangan bersama komunitas lokal.

Konsumen secara tidak langsung sudah menjadi penentu kebijakan perusahaan. Tren lifestyle akan menentukan sebuah produk itu akan laku atau tidak di pasar. Kecerdasan konsumen ini membuat perusahaan-perusahaan besar untuk lebih hati-hati dalam menjaga kepekaan terhadap keluhan konsumen atau kepedulian terhadap dampak industri terhadap lingkungannya.

Di Finlandia salah satu negara di Skandinavia memulai program CSR karena faktor perilaku konsumen yang mendapat informasi kinerja perusahaan-perusahaan dari sebuah surveyor independen atau swasta. Hampir 75 % dari konsumen meyakini terhadap perlakuan perusahaan terhadap buruh, pekerja atau karyawannya dan perlakuan ramah terhadap lingkungan menjadi kunci praktik-praktik bisnis yang baik (Good Corporate Governance (GCG)).

CSR dan GCG seperti dua sisi mata uang. Perusahaan yang sudah meyakini praktik CSR sebagai bentuk pertanggungjawabannya terhadap lingkungan sekitar akan berimplikasi terhadap meningkatnya produktivitas kerja dan performa perusahaan. Sebaliknya, perusahaan yang menganggap CSR hanya sebagai charity, bagi-bagi sembako, peredam konflik, gula-gula usaha, pagar pengaman perusahaan, maka perusahaan hanya menutup kepedulian temporer, padahal dibalik industrinya itu bisa jadi ada ”luka” permanen yang tidak bisa digantikan, baik secara ekonomi, sosial, budaya, hak asasi manusia maupun lingkungan.

Kemunculan CSR dimulai dari kepedulian terhadap ”luka-luka kecil” yang lama kelamaan membesar dan berdampak terhadap lingkungan global. Isu pemanasan global, misalnya dimulai dari emisi-emisi pabrik yang akumulasinya berdampak menipisnya lapisan ozon. Isu hak asasi manusia, dimulai dari konflik atau gagalnya perusahaan berdialog dengan masyarakat adat menyebabkan peminggiran, pengasingan hingga penindasan terhadap hak-hak adat, sehingga akses dan hak kelola mereka dikebiri.

Persepsi terhadap CSR terus berkembang mengacu pada sebuah hulu yaitu etika bisnis. Arus spirit of liberalism yang mendewakan capitalism menjadikan erosi etos dan degradasi budaya bisnis. Muaranya adalah ancaman terhadap bisnis itu sendiri, karena terjebak pada logika eksploitasi yang tidak berkelanjutan dan produktivitas yang tidak lestari.

Zaman menuntut perubahan, apakah dunia bisnis mau berubah? Malpraktik mainstream bisnis selama ini, seharusnya disadari lalu mereposisi dan merevitalisasi. Hal ini dikarenakan perusahaan ”lupa” melakukan kewajiban-kewajiban yang mesti dipikulnya. Budaya wirausaha yang harus mengoptimalkan kinerjanya, memuaskan pelanggan dan menjaga citra agar produknya tetap tepat sasaran tentu perlu tenaga ekstra yang luar biasa. Wajar jika mereka agak mengesampingkan sisi lain yang luput dari pandangannya. Pengusaha juga manusia, lupa terhadap luka dapat bermakna kegigihan usaha dan keteguhan jiwa, namun juga dapat berarti keteledoran perilaku dan kelalaian jiwa. CSR agaknya akan menjawab pada pilihan terakhir ini.