Why America’s Small Businesses Aren’t Going Green (and How ACCION USA is Changing That)
“Going green seems like a no-brainer—businesses can save both money and the planet, what’s not to love?” When we set out to launch our green loan product, that’s what we thought. And then we dug deeper, into the psyche and daily experience of the small businesses we serve. In addition to traditional market research, in April 2009 we executed two focus groups and what we found may surprise you. While small businesses report to “strongly believe in green”, they also:
- Are confused on the definition of a green businesses
- Feel there is a lack of transparency in the small business green market;
- Feel most businesses are not serious about helping the environment, but are looking for a “pat on the back” or a marketing gimmick; and
- Think going green is not economically viable, and should be heavily subsidized.
We can’t ignore the data. Going green can bring green ($) if you have green ($). Microfinance organizations are perfectly poised to pull small businesses out of the same old “I can’t, it’s too expensive” mentality. With the right loan product and support services, small business will see a return on their investment and, at the same time, make the planet a more hospitable place to live. To address the concerns we discovered in our initial research, ACCION USA will launch a green loan program that is:
- Clear on its definition of “green”,
- Focused on energy efficiency and provide clear-cut guidelines to defining green,
- Affordable if not low-cost,
- Industry-specific in terms of support services and marketing, and
- Supported by trusted organizations.
Stay tuned, this month we’re finishing up our second round of focus groups and will release preliminary results right here on Main Street Microfinance. In the meantime, check out our client and green-preneur Brian Duda.
Tags: green business loans