creating green jobs through sustainable enterprise development · creating green jobs through...

Karl Pfeffer

[email protected]

Green Jobs, ILO Pretoria

Creating green jobs

through sustainable enterprise development

• Importance of SMME’s for the SA Economy • The entrepreneurial process and entrepreneurial

activity • Profile and characteristics of some green entrepreneurs • Barriers to overcome by (green) entrepreneurs • A systemic approach to developing the Green Economy

in South Africa

Presentation roadmap

• SMMEs are defined as separate and distinct business entities managed by one owner or more. This includes amongst others social and green enterprises, cooperatives,….

• 5.6 million SMMEs in SA • 11.6 Million Jobs • 300.000 SME employ over 5 employees • Total early Stage Entrepreneurial Activity (TEA) in SA is lowest

amongst 10 sub-Saharan countries

Sources=Global Entrepreneurship Monitor 2012, SA; JP Morgan

report 2010

Importance of SMMEs for SA Economy

Total early Stage Entrepreneurial Activity The entrepreneurial process

Potential Entrepreneurs: beliefs and abilities

Nascent Established New

Entrepreneurship Phases

Intentions

Entrepreneurship Profile Inclusiveness • Sex • Age

Impact • Business growth • Innovation • Internationalization

Industry • Sector

Discontinuance

(TEA) Total Early-Stage Entrepreneurial Activity

The highest average TEA rates were found in Sub-Saharan Africa and Latin America/Caribbean. Zambia (41%) and Ecuador (27%) reported the highest rates in these regions.

How can we change mindsets of young South Africans to be more entrepreneurial and equipped to start and maintain green businesses?

South Africa’s TEA index is lower than other developing countries:

Of all the age groups, South African youth are least likely to start a business:

2012 2011 2010 2009

South Africa 7.3% 9.1% 8.9% 5.9%

Brazil 15% 14.9% 17.5% 15.3%

China 13% 24.0% 14.4% 18.8%

18-24 yrs

25-34 yrs

35-44 yrs

45-54 yrs

55-64 yrs

2010 20% 36% 24% 14% 6%

2011 16% 24% 32% 19% 9%

Country Perceived capabilit-

ies

*Quality of

education

TEA 2012

Malawi 86% 65 36%

Zambia 84% 39 41%

Namibia 76% 126 18%

Ethiopia 74% 85 15%

Ghana 86% 62 37%

Nigeria 86% 83 35%

Botswana 70% 55 28%

Uganda 88% 69 36%

South Africa

40% 140 7%

South African’s perceive their entrepreneurial capabilities as the lowest of 10 sub-Saharan countries

Even if they do start a business, it is not likely to last...

Country

Nas

cent

en

trep

rene

ursh

ip

rate

New

bus

ines

s ow

ners

hip

TEA

Esta

blis

hed

busi

ness

ow

ners

hip

rate

Disc

ontin

uatio

n of

bu

sine

sses

Malawi 18 20 36 11 29

Zambia 27 15 41 4 20

Namibia 11 7 18 3 12

Ethiopia 6 9 15 10 3

Ghana 15 23 37 38 16

Nigeria 22 14 35 16 8

Botswana 17 12 28 6 16

Uganda 10 28 36 31 26

South Africa 4 3 7 2 5

1. Eco-Post Recycling Company (Kenya) 2. 5 Star Stoves (South Africa) 3. MRDP Sunwater (South Africa) 4. Duncan Village Secondary Recycling Cooperative

(South Africa)

Who are green entrepreneurs: Examples of green entrepreneurs/enterprises

Presenter

Presentation Notes

Mr. Caleb Wakhungu is a green business entrepreneur in the manufacturing of solar panels in Uganda, using locally available material to produce nearly 80 percent of the solar panels used by communities in rural areas. Ms. Merabu Manige runs a business in Uganda which produces nutritional porridge and soup using locally grown mushrooms as a primary product, thereby adding value and making mushrooms attractive to local consumption.

Eco-Post Recycling Company (Kenya)

- Nairobi produces 2400 tonnes garbage of which 20% is plastic (480 tonnes).

- recycles plastic waste into fencing post aka plastic lumber

- Alternative to timber (deforestation)

- 40 direct Jobs, 500 indirect Jobs

- Lorna Ruto – winner of ILO/Enablis Business Plan Competition

Who are Green entrepreneurs?

Presenter

Presentation Notes

Mr. Caleb Wakhungu is a green business entrepreneur in the manufacturing of solar panels in Uganda, using locally available material to produce nearly 80 percent of the solar panels used by communities in rural areas. Ms. Merabu Manige runs a business in Uganda which produces nutritional porridge and soup using locally grown mushrooms as a primary product, thereby adding value and making mushrooms attractive to local consumption.

5 Star Stoves (SA) - Cooperative - sustainable clean cooking

stove business - producing biomass pellets to

cook and heat - Stove assembly on site - Distribution through franchise

model - 20 direct jobs created - Saving in energy resources

and costs (up to 360 R/month)


MRDP Sunwater (SA) - Part of Rural Development

Programme supporting young entrepreneurs to start their business in SWH

- Low tech and low maintenance passive water heating system in low income and or rural communities

- Use of PVC hoses - Monthly household spending

on firewood can be reduced by up to ZAR 400.


Duncan Village Secondary Recycling Cooperative (SA)

- Cooperatives PPP local municipality and DBSA

- Collection of waste through source separation of waste at a household level.

- Establishing composting facilities

- Reduction of waste to land fill, re-use and recycle

- Potential for 150 green jobs


Presenter

Presentation Notes

BUFFALO City in partnership with Development Bank of Southern Africa (BDSA) is implementing a recycling pilot project in Duncan Village to encourage residents to help keep the township clean. The project, called Separation at Source, is being rolled out in Duncan Village and Pefferville. Through it, residents are urged to separate their recyclable waste at home. Phase one of the project is funded by the DBSA with an intention of creating jobs though the exchange of money for recyclable waste. It is managed and implemented by Teba Development on behalf of the bank. Metro solid waste manager Nosifundo Sikweyiya said three co-operatives began operating in June last year. "The metro is assisting the co-operatives with information about waste management and refuse collection days, municipal by-laws and recycling methods," added Sikweyiya. "[It] is trying its best to reduce the amount of waste being dumped at the landfill site in Berlin." Speaking about the work done by the co-operatives, she said: "The work that they do cuts down on the amount of rubbish illegally dumped in Duncan Village, helps save the environment and puts food on their tables." The project would help minimise the amount of waste going to the landfill site. "Buffalo City wants to create a cleaner environment as well as formalise informal recyclers. This will also promote greening and recycling as a key component of modern waste reduction and is their component of the reduce, reuse and recycle waste hierarchy." As part of Separation at Source, members of the co-operatives go door to door conducting a comprehensive outreach campaign to inform residents about the initiative. Two bags – a clear one for dry waste and a green one for organic waste – are given to each household during the visits. Dry waste includes wood and related products, metals and glass, plastic, paper and cardboard, while organic waste is of a biological origin and includes food, green and garden waste. Sikweyiya said the co-op members completed a course in general waste management, zero waste induction and presentation skills. "These skills will help them while they are conducting these door-to-door visits." The co-operatives have a basic sorting and storage facility on the corner of Ndende Street and Douglas Smith Highway in Duncan Village. After sorting the waste, they sell it off to recycling companies.

12

Characteristics of green entrepreneurship

• Sustainable business • Providing green products and services • Innovation driven • Opening new markets • Opportunities for youth and gender

Presenter

Presentation Notes

13

But can they do it on their own? Barriers or enabling factors for

(green) entrepreneurs

Do potential green entrepreneurs have • Market demand? • Enabling Policy framework? • Access to finance? • Skills (technical as well as business skills)? • Support in the start up phase, i.e. the Total Early

Stage Entrepreneurial Activity (TEA) phase that is so crucial for sustainability?

Presenter

Presentation Notes

14

Towards a framework for green jobs creation through SMME

development

- Looking at the wide diversity of barriers, there is no single solution or one silver bullet

- SMMEs are located at crossroads of different networks of actors and

interaction, at the different systemic levels - Meta level: perceptions and attitudes - Macro level: rules of doing business - Micro level: SMME’s

- Need for an integrated systemic approach which a. links the principal actors across system levels b. improve interaction by fostering or establishing connections

between principal stakeholder

Presenter

Presentation Notes

15

Macro level: Create an enabling business environment for the green economy

Micro level: Stimulation of innovation, entrepreneurship and sustainable enterprises

Meta level: Nurture a culture of green entrepreneurship among (young) men and women

Systemic Approach to the Development of a Green Economy in South Africa (meta, macro,

micro levels)

Presenter

Presentation Notes

16

An example – The 2014 Free State enterPRIZE Job Creation Challenge to stimulate green

entrepreneurship

www.enterprizejobchallenge.co.za

Thank you

[email protected]

creating green jobs through sustainable enterprise development · creating green jobs through...

Documents