Green Entrepreneurship: What It Is, Importance, How It Works

Sustainability is an important and necessary movement in view of the impacts that human activities have on the environment. And green entrepreneurship is part of this movement.

João Fiche


João Fiche


November 26, 2021

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Sustainability. More than just a buzzword, it is an important and necessary movement in face of the impacts that human activities have been causing to the environment. And green entrepreneurship is part of this movement.

Producing and providing sustainable products and services, besides the environmental issue, is an economic opportunity and can be a differential for small, medium, and large companies.

Want to know more about the subject? In this article we will list the main points about green entrepreneurship. Enjoy your reading!

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What is green entrepreneurship?

Green entrepreneurship is economic activities that in some way revolutionize production chains, and thus propose improvements and innovation processes that reconcile development and environmental protection.

Green entrepreneurship is, in essence, a business model that is more conscious and has the potential to add more value to its products and services.

How did green entrepreneurship come about?

The United Nations Environment Programme (UNEP) developed the green economy concept in 2008. 

It aims to encourage the adoption of economic activities that prioritize the well-being of society, the reduction of environmental impacts, and the conservation of biodiversity.

In other words, green entrepreneurship should work to generate jobs and income, while collaborating with initiatives such as increasing the use of renewable energy, recycling, and avoiding waste.

And the world has made some progress in this regard!

The Ellen MacArthur Foundation and the United Nations Environment Programme have published the Global Commitment 2021 Progress Report.

The report shows that companies responsible for 20% of the plastic packaging produced globally have made progress on their goals to create a circular plastic economy by 2025.

Much of this success comes from recycling materials, with decreasing production being the next step.

How important is this type of entrepreneurship?

Green entrepreneurship is not just another market trend. It is a human need.

The latest Climate Change Risk Assessment report indicates irreversible changes between the years 2040 and 2050 if drastic measures are not taken.

The maintenance of natural resources, correct waste disposal, recycling, and reuse of raw materials must be part of the companies' routines as a whole.

Moreover, the importance of these projects is also due to the opportunity that companies have to positively impact an entire chain of people, from suppliers to employees and consumers.

Although there is a need for changes on a global scale, it is important to remember that every action counts. 

Improving waste management, reducing water, energy, and raw material consumption are actions that generate major impacts in companies. And this, consequently, generates improvements for the environment.

Being sustainable generates advantages in the market, because it adds value to the brand and products. So, if your company does not follow a sustainable model, it is time to start thinking about implementing measures in this direction.

Of course, changes of this magnitude do not happen overnight. But it is important to develop alternatives. And even if your company is not 100% sustainable, some actions already promote value to your business and bring social benefits.

How does green entrepreneurship work?

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Green entrepreneurship has three pillars: reduce, reuse, and recycle. By establishing these guidelines it is possible to see new horizons for the way you do business.

A survey conducted by the Sebrae Sustainability Center indicated that 91% of small entrepreneurs believe that developing sustainable ideas generates new business opportunities.

What are the characteristics of green entrepreneurship?

To make your business sustainable, you need to pay attention to the precepts and characteristics that make up this movement and, from there, make the necessary changes.

Check out the main factors that characterize green entrepreneurship:

  • Conscious use of natural resources;
  • sense of commitment to social and environmental causes
  • reduction of negative impacts to the environment;
  • commitment to the promotion of social inclusion;
  • search for alternatives to reduce carbon emissions;
  • adoption of sustainable consumption practices, such as water reduction, selective collection, etc;
  • good coexistence and integration with the local community;
  • substituting the consumption of environmentally harmful products for ecological options, among others.

These practices can also, of course, become competitive differentials in the market. After all, the demand for more correct consumption options has increased. 

Example of Green Entrepreneurship

Some companies have managed to implement the green economy and make their businesses more sustainable, being true success cases. Take a look at some examples!

Tiê Sustainable Fashion

The fashion industry is one of the main polluters, but some companies go against this, like Tiê Moda Sustentável.

It uses organic and recycled materials to produce its garments.


Pecoh is a 100% sustainable products store, which has options for personal care and home. They ensure quality, with more awareness.

How to apply green entrepreneurship?

The first step is to understand what green entrepreneurship means for your business. How it can add value to your products and services, what advantages it will bring.

Next, plan which, how and when sustainability measures will be adopted. For example, if you have a company that produces cleaning materials, you may choose to produce biodegradable packaging, for example.

Study the market and see what your options are!

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Taking better care of the planet is everyone's duty! Green entrepreneurship brings to the fore the responsibility that companies have with people and the environment. 

Take your plans out of the closet, roll up your sleeves, and be part of the change the world needs.

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