Sunday, November 4, 2012

Entrepreneurship Towards Green Technology


Introduction

Entrepreneurship is an idea and action of starting of a new business either in smaller scale or larger scale. Smaller scale enterprises or more recognized as SME[1]s are focused to those local producers and suppliers who are producing more than 50% of local product or services. Larger scale enterprises are also being mentioned as SMEs but they are more focused to international market and product such as DELL, NOKIA, and etc.
Entrepreneurship is also related to the ability to take risk and develop a product or service to a marketable value so that it can be a new business venture. It could on a product or service which was already exist or creating a new opportunity.
Green Technology, from my understanding is simple to be identify as Energy Saving and Renewable Energy.
Energy saving is reflected to those initiative to save the energy produced by bulbs (light), cars or air-conditioner (CFC, Monoxide), and etc. For an example, energy saving bulbs are being produced to the market which reduce the usage of the electric energy to 70%. This bulbs can produce energy as low as at 1Kw to 3Kw compared to halogen bulbs wich produces more than 50Kw energy.
Renewable energy is reflected to energy which can be renewed on usage such as air, water, coal, and wind. For an example, a new technology has been introduced to replace current air-conditioning system which is called as ice-cube system. Those ice-cubes will be used to produced cool air to be circulated in a building and it is centralized on the day time. At night, the melted ice-cubes will be frozen again to produce ice for the next day. This action will be continuous and definitely it is 0% CFC. The water will be supplied through the underground or roof  top piping system from the main pipe.
            As a developing country in Asia, the Government of Malaysia has implemented Green Technology in parallel with other developed countries. World’s top ten countries implemented creativity and innovation in green technology, and who also have stimulating environment for companies in the industry, either public policy or private funding are Denmark, Israel, Sweden, Finland, United States, Germany, Canada, South Korea, Ireland and United Kingdom. As technological innovation facilitated incredible changes in consumer lifestyles and productivity in the last 200 years, the development of so-called green technologies will be essential to catalyze and facilitate the sustainability revolution in the 21st century.
            This research has been carried away to introduce the new image of entrepreneurship in Malaysia which is into Green Technology and to find the objectives of this new initiative. We will also research about the challenges by installing this initiative among the young entrepreneurs and the possible strategies to overcome those challenges.
            The main objective of introducing the new image is to support the Green Technology Policies have been published by KeTTHA[2] website, containing few elements. They are:
·         Minimize growth of energy consumption
·         Facilitate the growth of the Green Technology industry and enhance its contribution to the national economy
·         Increase national capability for innovation in Green Technology development and enhance Malaysia in Green Technology globally
·         Ensure sustainable development and conserve the environment for future generations
·         Enhance public education and awareness on Green Technology and encourage is widespread use


Problem Statement

Lack of Government support and knowledge awareness among entrepreneurs and enterprises to transform towards green technology.


Objective

After analyzing the problem statement, I have done other researches on government initiatives to promote green technology between within entrepreneurs, regardless of their business scale and sector.
The main reason of this research has been is to suggest a competent solution to the government and other organizations such as NGO[3]s in overcoming the problem discovered.
It is also to find the status of our country in international level in practising green technology.

Current issue

          After some findings have been done, I found that the government, even though has already implemented the policy in the year 2009, there are no strict governance onto the policy. The government did not emphasis the implementation nationwide but focused only on certain areas. This can be clearly seen when the local companies such as KFC Holdings are still using plastic bags for the package whereas McDonald’s has been using paper bags for the package for the past 2 years ago.

            I also found that there are vast difference of application on Green Technologies between big companies and SMEs. This is because of the government policy by giving incentives for those who are implementing Green Technology. But the matter is how many entrepreneurs and enterprises are aware of this incentive? There are only certain young entrepreneurs are aware of this initiative. Big companies or to be called as our country’s investors such as DELL, INTEL, Robert BOSCH, First Solar, St.Jude’s and many more are already practising Green Technology by building a Green Building, Energy Saving bulbs and products, Recycle, and many more.

         They are given incentive to get refund of their yearly TAX and also refund of electricity bill monthly for supporting Green Technology. But the issue is, government has direct connection where these companies get the updates on those incentives as soon as its announcement. Unlike the smaller scale companies such as the stall owners and restaurant owners, they are not being exposed to the Green Technology initiatives by the government.

          SSM[4] or Companies Commission of Malaysia did not play their role in implementing government objective in producing entrepreneurs towards green technology. As we are concern, the procedures in order to register a new company, either enterprise or private limited did not have any element of urging the new comers to practice Green Technology. There is no any course of awareness program conducted by them to the newly registered company owners on how they can practice Green Technology in their business, regardless of what sector they are involved in. It affects the awareness level for the company owners as they do not know the importance of the practice and what the benefits of its implementation are.

Future issue

        Taking actions to overcome the current issue is not sufficient as it will lead to future problems if they are not being planned properly. Every step that the government or agencies going to take over this matter have to be tested and considerable for future possible issues so that suggestions and prevention plans can be planned.

        In this matter, I found that by government making a public implementation of Green Technology into all scales of entrepreneurs will create financial problem to the country. This is because, the statistic from SSM shows that 4646722 companies has been registered in Malaysia for business propose up to year 2011. This shows that, if each and every company implements Green Technology in order to enjoy tax exemption and incentives, the government will have to spend more than their budget of 1.5mil (2011 budget) for this alone.

            Other than, the latest demand of products will be on Green Technology products and this will create a very huge opportunities for the biodegradable product manufacturers to tap into the market. As all the small companies started to purchase it, the demand will increase and once the demand is at high level, the product suppliers will increase the price of the product. Rather than having it on cheaper price, the business owners will have to spend more money for maintaining their Green Technology effort, in order to fulfil the government’s requirement to enjoy the incentive and benefits.

     SSM also will be facing difficulties to emphasis on Green Technology within the entrepreneurs. As shown earlier, there more than 4mil companies registered and to call them back for an awareness program is just going to cost their time and finance in a huge scale. With the increase number of registration day by day and calling for an awareness program will create a hassle for the department to deliver their productivity.


Strategies

To overcome those problem stated above, I have done some research and came across some ideas. Firstly, the government can introduce a new audit system to the companies registered as Green Technology practitioners so that it can be monitored easily. We are aware that the current world is very famous with cheating on reports. To avoid those fault companies to enjoy the benefits without implementing the technology, an audit system can be introduced where a special force will be placed to monitor the report sent by the companies. It is agreed that monitoring one by one takes ample of time, therefore online report submission should be created so that the owners can do it anytime, everywhere. These officers will filter the reports according to it completeness towards the policy implementation and fulfil the requirements. A certificate should be given to those successful companies and this certificate will be used to redeem the incentives. Indirectly it will help to reduce the financial issue for the government since not all the companies will entitled for the incentives.

Next, the issue on biodegradable products can be solved if the government again come into action. Government should give a new scheme, which is green product purchase scheme where encourages the smaller scale companies to purchase them at cheaper rate. The price has to be controlled by the government so the suppliers did not increase the price above affordability of purchasers. Small companies should be given an incentive of free biodegradable product such plastic bags, paper bags, and utensils for them to start up their business. This will reduce the business owners cost of starting up a new business. Other than that, the government can also appoint trusted suppliers to supply the products at the cheapest rate for the business owners.

SSM need to take a new step in this initiative as well. SSM has a very good  platform to create awarenees and I would like to suggest that SSM to hold a seminar on green products usage to the newly registered business owners. Since they could not target to the existing companies as the number is huge, they can start it in small effort by conducting at least a half a day seminar to the new entrepreneurs. They can do it in the morning before the entrepreneurs register their company and they can give consultation on what type of product which supports green technology can be used for their business.


Conclusion

In conclusion, I find that Entrepreneurs towards Green Technology will help to create a country towards Green World by the support from Government, SSM and the business owners themselves.




[1] Small Medium Enterprise
[2] Kementerian Tenaga, Teknologi Hijau dan Air Malaysia
[3] Non Government Organization
[4] Suruhanjaya Syarikat Malaysia

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