Sustainability through Eco-entrepreneurship: Analyzing the opportunities and challenges for micro and small-scale eco-enterprises in Sri Lanka

Abstract

The 17 Sustainable Development Goals (SDGs) adopted at the UN Sustainable Development Summit in 2015 place a greater importance on Green Economy. These goals acknowledge that economic growth without social and environmental considerations will not contribute to sustainable development. Thus, the key aim for a transition to a Green Economy is to enable economic growth and investment while increasing environmental quality and social inclusiveness. In this context, eco-entrepreneurship plays an important role. Green or ‘eco’ entrepreneurs are those consciously seeking business opportunities to provide, or support, profitable yet resource-efficient products and services. Therefore, eco-entrepreneurship lies at the nexus of innovation, environment, and entrepreneurship. This paper focuses on three case studies of eco-enterprises in Sri Lanka, the impact they are achieving and the challenges and opportunities they face. The eco-enterprises selected for the study are 1. Katana Upcycles from Negombo 2. Paalam Products from Jaffna and 3. Yaal fibre from Neerveli. Theses social enterprises achieve a mix of social, economic and environmental impacts through their businesses, including waste reduction, creating job opportunities and introducing eco-friendly alternatives to the market. The study also identifies that the eco-enterprises face numerous challenges to sustain their growth and scale up. Challenges include limited access to funds, lack of business and marketing skills and access to suitable markets. The study suggests that by providing networking opportunities and creating platforms for dialogue will support eco-enterprises to connect and build partnerships that will help in innovation, productivity enhancements, and unlocking new market opportunities.