Investigating Sustainable Business Practices for future: A Comparative Study of Green Entrepreneurship in the Global North and South(Serial Num: 0013-25-04)

Tobia Magezi Omal

08 Apr

08Apr

Research Paper

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Presented at the One-Day Students' Seminar on Green Entrepreneurship

Between , 21st Century Open University USA, and Darrang College Tezpur, Assam, India

Date Presented : March 21, 2025

Abstract

Green entrepreneurship is crucial for sustainable economic growth and environmental solutions. However, its development varies across the Global North and South due to differences in policies, financial access, and infrastructure.

This study examines these disparities, highlighting the challenges and opportunities in both regions. Entrepreneurs in the North benefit from strong support systems, while those in the South face funding and regulatory obstacles but access untapped markets. Using Ecological Modernization Theory, the study suggests expanding financial aid, improving infrastructure, and strengthening policies to foster green businesses globally. Bridging these gaps can drive sustainability and economic progress worldwide.

Introduction

Sustainable business practices are increasingly vital globally, addressing environmental, economic, and social concerns. Green entrepreneurship, focusing on environmental sustainability, has gained traction in both developed and developing economies. However, the challenges and opportunities faced by entrepreneurs differ between the Global North and South due to varying economic, cultural, and policy environments. Understanding these differences is crucial for promoting sustainable practices and supporting green businesses worldwide. This study explores green entrepreneurship, comparing the challenges and opportunities between the Global North and South, aiming to inform policies and strategies that foster green entrepreneurship in both regions (Gopal, 2024; Tweve & Masalu, 2024).

Research Question

•How do the challenges faced by green entrepreneurs in the Global North and South differ?

•what green business opportunities are available in each region?

Broad Objective of the Study:

To examine regional disparities in green entrepreneurship, with the goal of informing policies and strategies to promote green businesses in both Global North and South.

Specific Objectives

1.Identify and compare the challenges faced by green entrepreneurs in the Global North and South.

2.Explore the available green business opportunities in both regions.

Literature Review

Green entrepreneurship integrates sustainability with business innovation. The Global North benefits from advanced technology, financial support, and strong policies, while the Global South faces funding shortages, regulatory weaknesses, and infrastructure challenges (Powell et al., 2023). However, emerging markets and abundant resources offer significant opportunities for sustainable businesses (Tweve & Masalu, 2024).

Recent studies reveal contrasting dynamics in green entrepreneurship. Policies like the U.S. Inflation Reduction Act strengthen Northern industries but limit Southern exports (Powell et al., 2023). Meanwhile, Africa's green sector, particularly in renewable energy and agriculture, shows growth potential, despite economic disparities widening due to a technological gap (UNEP, 2023; UNCTAD, 2023).

The theory

The substantial theory that underpins green entrepreneurship in the context of global disparities and opportunities is Ecological Modernization Theory (EMT). This theory suggests that economic growth and environmental sustainability can be achieved simultaneously through technological innovation, policy reforms, and market-based solutions.

Discussion

Green entrepreneurship has rapidly grown in both the Global North and South in response to environmental concerns. However, support structures differ significantly between the two regions. In the Global North, established green policies, advanced technology, and financial resources provide entrepreneurs with a conducive environment for sustainable business practices (Mazzucato, 2024). Conversely, in the Global South, green entrepreneurs often face challenges such as limited access to funding, inadequate infrastructure, and insufficient technical knowledge (Gray & Johnson, 2019). Despite these challenges, both regions present unique opportunities for growth in green business sectors.

In the Global North, high market demand for sustainable products and government incentives supports eco-friendly innovations (Smith & Adams, 2020). Entrepreneurs benefit from well-developed supply chains focused on sustainability. However, competition is intense, and market saturation may limit opportunities. In contrast, the Global South offers untapped markets, particularly in renewable energy, eco-tourism, and sustainable agriculture. Green entrepreneurs can address local environmental issues while contributing to global sustainability goals. Challenges such as poor infrastructure and limited consumer awareness hinder business growth (Zhao & Li, 2021). Despite these barriers, there are growing opportunities for green entrepreneurship, especially as global demand for sustainable practices increases (United Nations Conference on Trade and Development, 2023).

Analysis

A comparative analysis reveals significant differences between green entrepreneurship in the Global North and South. Entrepreneurs in the North benefit from established financial systems, strong policy support, and consumer awareness, leading to sustainable practices and innovations (Smith & Adams, 2020). The South, while facing challenges, benefits from untapped markets and a growing emphasis on environmental sustainability. Policymakers in both regions play a crucial role in facilitating green business growth. Governments in the North offer support through subsidies and incentives, while Southern governments need to create favorable environments for green enterprises (Mazzucato, 2024). Recent studies show that the green tech divide between the North and South is widening, with significant implications for innovation in the Global South (United Nations Conference on Trade and Development, 2023).

Solutions for a Sustainable Future in Green Entrepreneurship

1.Expanding Financial Access – Governments and investors should provide grants, subsidies, and loans to support green startups, especially in developing economies (Ghana Sentinel, 2024).

2.Improving Infrastructure and Technology – Investments in renewable energy, digital connectivity, and sustainable supply chains will strengthen green business operations An Irish start-up, (The Time, 2024).

3.Enhancing Education and Policy Support – Training programs and supportive policies will equip entrepreneurs with skills and incentives for sustainable business success.

Conclusion

Green entrepreneurship holds promise for sustainable development in both the Global North and South. While both regions face distinct challenges, they also present opportunities for growth and innovation in eco-friendly businesses. Policymakers and business leaders must strengthen support structures for green businesses, especially in the Global South, to overcome barriers and contribute to global sustainability. Comparing challenges and opportunities between the Global North and South highlights the importance of context-specific solutions to promote sustainable business practices worldwide (Gopal, 2024; Tweve & Masalu, 2024).

References

•Gopal, A. (2024, November 30). How small businesses can help tackle climate change. Time. https://time.com/7176581/time-100-talk-cop29-small-business-climate-change/

•Tweve, Y., & Masalu, G. R. (2024). Barriers and opportunities for green entrepreneurship in emerging economies: A case study of Kilolo District, Tanzania. International Journal of Recent Engineering Science, 11(6), 249-259.

•United Nations Conference on Trade and Development. (2023, March 16). Deepening green tech divide between Global North, South to worsen economic inequality, warns UN. Down To Earth. https://www.downtoearth.org.in/news/governance/deepening-green-tech-divide-between-global-north-south-to-worsen-economic-inequality-warns-un-88401

•Mazzucato, M. (2024, January 15). Can the state innovate? Financial Times. https://www.ft.com/content/647c9e79-2d66-4f19-977a-20b062035484

•Ghana Sentinel. (2024). Empowering women and youth through green entrepreneurship in Ghana. Retrieved from https://ghanasentinel.com

•The Times. (2024). Golden opportunities in the race to go green. Retrieved from https://www.thetimes.co.uk

•Zhao, Y., & Li, M. (2021). The rise of green entrepreneurship in the Global South: Challenges and solutions. International Journal of Green Economics, 17(2), 205-221.

•Smith, E. M., & Adams, R. T. (2020). Sustainable business practices in the Global North: The role of policy and market forces. Business Strategy and the Environment, 29(4), 1235-1247.

•Gray, J. A., & Johnson, D. L. (2019). Green entrepreneurship: Challenges and opportunities in the Global South. Environmental Economics and Policy Studies, 21(3), 441-462.

•Powell, L., Sati, A., & Tomar, V. K. (2023). Green protectionism in the Global North: Implications for the Global South. Observer Research Foundation. Retrieved from

•United Nations Environment Programme. (2023). Africa’s green business opportunities are abundant, UNEP study shows. Retrieved from

•United Nations Conference on Trade and Development. (2023). Deepening green tech divide between Global North, South to worsen economic inequality, warns UN. Retrieved from

Green Entrepreneurship

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