Resources
Resources
Resources
There is Money in Green Businesses
Viewed: 13301 Times

As the nation's energy crunch persists and the U.S. government continues to struggle to come up with a time frame for reduced emissions, venture capitalists are doing their part by supporting new businesses “going green.”

What does going “green” mean?
In modern terms, “green” is not just a color. It is an environmental way of life in which an individual or groups of people have a commitment to utilize resources that are beneficial for the planet. Air, water, and food are just some of the necessary components that will sustain life; therefore, keeping the environment clean is crucial for maintaining health and existence. Many businesses are encouraged to properly report their environmental liabilities to potential investors. At the same time, they are also taking advantage of green opportunities.

A “green” business
A lot of new businesses are taking progressive steps to become more environmentally efficient. For example, eco-friendly foods, clothing, and technology are just some popular inventions that new businesses have recently adapted. In addition, employees are encouraged to use energy-efficient equipment and supplies and recycle appropriately in order to help minimize the amount of carbon emissions and waste production. Eco-friendly employers (eco-employers) have also been known to purchase bikes for their workers to help combat the rising fuel costs. Becoming environmentally conscious, or “green,” has become a very common practice in today’s business world.

Money in green
In fact, new business owners are finding it easier to gain access to capital if they have a green component in their businesses. Federal agencies, environmental organizations, and everyday consumers are demanding that businesses become more environmentally aware and produce products that also have a green component. Therefore, plenty of new businesses are doing just that. They are adjusting their business proposals so their companies reflect a more environmentally sustainable economy.

Research shows that investment in new business ventures that use green technology rose by 35 percent in 2005 to total $1.6 billion. The investments in this sector are expected to grow by 10 percent or more every year for the next few years. Another report indicates that most of the "clean companies" attracting venture capital still hail from the energy industry. More than 35.6 percent of the total money invested in new business ventures were in companies specializing in green materials and nanotechnology used in industrial and consumer electronics.

New business ventures that are clean are also attracting investments from banks. In fact, capital access from banks for these new business ventures has also increased by more than 2 percent. Entrepreneurs looking for seed capital from banks and other investment agencies need to keep their business proposals ready. These proposals should clearly and succinctly state the mission of the new business as well as its long and short term goals.

Conclusion
More and more entrepreneurs are adapting to “green” business practices and reflecting these ideas in their business plans. Many investors realize that going “green” is a lucrative trend and are taking advantage of investing in these companies. Likewise, banks also understand the importance of environmentally friendly business practices. They also tend to favor companies with a green component.

 Digg It    Stumble It    Deli.icio.us

Related Articles