Ferda Ulutaş Technology Development Foundation of Turkey
SMART START-UP Multi‐Stakeholder Meeting on the Future of Sustainable Business and Entrepreneurship in the Mediterranean
February 17, 2012 Boğaziçi University, İstanbul
TTGV and Green Entrepreneurship TTGV was founded in 1991 as an example of public-private partnership. It is “not for profit – It is a ”Foundation”. Its mission is to support technological innovation towards increasing the competitiveness of Turkish industry in global markets
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Innovation Research and Development Entrepreneurship Competitiveness Technology development Etc.
TTGV - CP/RAC Cooperation for Green Entr.
CP/RAC’s Strategy to Promote Green Entrepreneurship in the Mediterranean Countries CP/RAC’s Intention for Integrating the Assets and Challenges of Turkey within this strategy A project funded by CP/RAC and implemented by TTGV in 2011 Investigation and analysis of the existing situation, the assets and challenges of promoting green entrepreneurship for change to sustainable lifestyles in Turkey A valuable opportunity to make a contribution to the CP/RAC’s strategy and to start a Green Entr. work in Turkey among relevant stakeholders.
Green Entrepreneurship In Turkey
The outcome of the study is the Report “Green Entrepreneurship in Turkey”
It is based on literature review, personal interviews with outstanding experts from the business (entrepreneurship) and environment worlds, company contacts, TTGV’s experience and portfolio, etc.
Content
Conceptual Framework Entrepreneurship ECOSYSTEM in Turkey Analysis of Green Entrepreneurship ECOSYSTEM in Turkey Perception of Green Entrepreneurship By Turkish Stakeholders Sectoral Outlook in Terms of Green Entrepreneurship Green Entrepreneurship Case Studies in Turkey Results and Recommendations
Green Entrepreneurship – Conceptual Framework
Combination of sustainable entrepreneurship and ecoentrepreneurship. The focus is on the environmental benefits particularly those which have a direct contribution to sustainable lifestyles. The green (environmental) aspect is taken within the context of “Sustainable Consumption and Production (SCP)”.
Entrepreneurship Ecosystem in Turkey
Based on quantitative analysis, Turkey is “not entrepreneurial”. Total Early Stage Entrepreneurial Activity (TEA) is 6% in 2008, 8.6% in 2010 (average for similar countries 11.7%. In spite of the fact that level of entrepreneurial activity is quite low in Turkey, it is exhibiting a rising tendency in recent years. It is becoming more popular in recent years (TV programmes, etc.) Turkey’s entrepreneurial environment is rated lower than average in all fields except for the market openness (rapidity of changes in the markets). Turkey has been given the ranking of 65 among 183 countries in terms of ease of starting a business.
Entrepreneurship Motives in Turkey GENERAL • • • •
TURKEY
Self realization and independency Enhanced status and income Economic contribution and impact Upholding tradition and securing income
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Green Entrepreneurship Ecosystem in Turkey Contribution of GE in the overall entrepreneurship activity – some figures and examples: Dragons’ Den Türkiye: 92 business ideas were presented, 14 of them were green ideas (15%); 13 ideas were successful, 4 of them were green ideas (30%) During the Entrepreneurship Competition “birFIKRINmiVAR?” (doyouHAVEanIDEA?), totally 10.000 ideas were collected. 4% of all were identified to be in environmental sector, excluding environmentally friendly products/services in other sectors. Hence, green ideas ratio is much higer. In TTGV R&D support portfolio of 900 projects since 1991, 11.5% of them are environmental projects with much higher ratios in recent years.
Green Entrepreneurship Motives
Flexibility, freedom, etc.
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Conditions/Drivers Affecting Green Entr. in Turkey
Environmental and energy related legislation (international agreements and national legislation) Waste management regulations (specific wastes: tyres, etc.) EU harmonization process (eco-label, WEEE, etc.) Energy efficiency/ Renewable energy laws and regulations Eco-design of energy related products Energy labelling of household appliances Strategy documents and action plans Industrial Strategy and Action Plan (eco-design, ecolabelling, WEEE, Oeko-tex 100 standard, etc.) Financial supports and incentives (R&D, investment, renewables, etc.) National capacity
Perception of Green Entr. by Turkish Stakeholders
Green Entrepreneurship: A very new concept Entrepreneurship community not very much inclined towards environment while environment community not knowledgeable about entrepreneurship Actually it covers a wide range of investment areas Environmental technologies is the technology of future Corporate Social Responsibility and creating a shared value CSR and shared value approach is a path to combining globalization with localization, resource efficiency and local business opportunities
Perception of Green Entr. by Turkish Stakeholders Investment Instruments (equity financing)
Small and new investments of Green Entr. Not interesting for Private Equity financing – needs to come to saturation level – 10 years ? Venture Capital is a growing sector, limited venture capitalists prefer more mature companies or post start up’s – not easy to assess its usage for green entr. “Business Angels” concept has relatively a social aspect, hence green business may be attractive for business angels. The target group includes start up’s and relatively lower investements take place (<0.5 million USD)
Perception of Green Entr. by Turkish Stakeholders Assets and Opportunities
• Rising tendency in entrepreneurship activities • Rising tendency in environmental R&D and entrepreneurship activities • A number of institutions (governmental and nongovernmental) providing support for entrepreneurship in general • Regional development agencies’ supports favourable for green entrepreneurship • Business angels as an opportunity for green businesses • Opportunity based entrepreneurship exceeding the necessity based entrepreneurship • Technoparks as a possible medium for hosting green entrepreneurship activities • Comprehensive environmental and energy related legislation creating opportunities for green entrepreneurship • Additional legislation (eco-labelling directive, etc.) to be harmonized within EU accession process • Green entrepreneurship context with a high potential of quick perception by entrepreneurs • Concepts of “corporate social responsibility”, “environmental, social and governance (ESG)”and “shared value creation” being considered and discussed by particularly large enterprises • Sustainability Index studies in İstanbul Stock Exchange • Business world very much interested in climate change issues and possible actions to be taken • Environmental technologies regarded as the “technology of the future”
Barriers and Challenges
• Low level of entrepreneurship in general • No specific support programs dedicated to “green entrepreneurship” • Limited number of support programs dedicated to environmental projects and investments • Limited knowledge and capacity in SCP and even eco-efficiency • Existing support system and access to finance which need to be improved • Private equity not likely to be available for green entrepreneurship in the near future • Educational system and cultural norms not promoting the entrepreneurship spirit • Environmental and energy related legislation with deficiencies in execution and auditing • No specific strategy and action plan for SCP • Green entrepreneurship as quite a new concept for stakeholders • A product based green entrepreneurship perception rather than dematerialization • Limited capacity and awareness of environment in particularly small enterprises • Lack of awareness and interest of Turkish consumers in environmentally friendly products and services • No Green Public Procurement policies applied • Disbelief of private sector in arising of sufficient demand for environmentally friendly products and services in the market • Limited capacity in environmental technologies development and incentives including renewable energy technologies • Lack of tendency of Turkish people towards cooperation and open
Sectoral Outlook ď Ż
R&D Perspective (TTGV Portfolio):
Pollution prevention
Sectoral Outlook Stakeholder Opinions Priority Sectors In the World for SCP:
Turkish Stakeholders’ Priorities for Green Entr.
Cross Cutting Areas
Renewable/ Clean Energy
Food
Sectoral Outlook
Present and Potential Sectors for Green Entrepreneurship: Energy (renewable energy, clean coal technologies, energy efficiency) Waste Management (waste recovery, recycling and valorisation) Agriculture and Husbandry (efficient techniques, organic agriculture and husbandry, waste valorisation, waste to energy and waste to product) Automotive (electrical cars, engine and battery technologies) Electrical Household Appliances (energy efficient and ecodesigned appliances)
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Environmental and energy consultancy Eco-tourism ….
Sectoral Outlook
Emerging Concepts and Technologies Industrial Symbiosis Climate Change Adaptation New products/ technologies Low carbon products Carbon capture and storage Carbon nano-particles ....
Green Entrepreneurship Examples From Turkey
Selected Case Studies – Top 6
Green Entrepreneurship Examples From Turkey ď Ż
Other Case Studies Reported
Recommendations – some examples
Acknowledgement For Interviewees
Didem Altop İsak Antika Managing Director, Endeavor Owner of Actera Group
Engin Güvenç Executive Director, Business Council for Sustainable Development
Alphan Manas Chairman, Brightwell Holdings BV
Nevzat Aydın CEO, yemeksepeti.com
Murat Özgen CEO, Is Private Equity
Dr. A. Mete Çakmakcı Secretary General, TTGV
Fuat Sami Founder and Managing Director, LabX
Pervin Katmer Gürkan Man. Owner, UZD Consultancy
Cengiz Ultav Exec. Board Member, VESTEL
Thank You… Ferda Ulutaş Environmental Projects Group Technology Development Foundation of Turkey Cyberplaza B-Blok Kat: 5-6 Bilkent/Ankara fulutas@ttgv.org.tr