Young Entrepreneurs: Changing the Face of Sustainable Business

Having grown up in a climate of increased corporate disclosure and with a greater awareness of the interconnections between people, nature, and business, many business-minded youths are striving to uphold self-imposed standards of sustainability.

Unfortunately for young idealists, the world of entry-level employment can be a discouraging one. Often, new recruits must wait years to achieve a position in which they finally have a say in policymaking decisions, including those that directly impact the environment.

Having seen the devastating impact business can have on the Earth, many young people are seeking to establish a new paradigm of corporate responsibility — by starting their own businesses.

Paige Morse started Sweetgrass Natural Fibers at age 28. Inspired by a former boss who encouraged individual thought and creativity, Morse set out to establish a clothing company that uses only hemp and organic-cotton fabrics, with all products manufactured in the U.S. “I wanted my business to reflect my personal values,” Morse says. Sweetgrass encourages “planetary healing … by providing the highest-quality products that promote sustainable living and agriculture.”

Tracey Holderman’s decision to co-found Dagoba Organic Chocolate, also at the age of 28, was based on her conviction that the limited amount of organic chocolate available was often compromised in flavor. In addition to producing a better-tasting product, Dagoba’s mission is “to help create a better world through organic and sustainable agriculture, fair-trade philosophies, and eco-friendly manufacturing practices.”

Guayaki Yerba Mate, an organic-tea company based in San Luis Obispo, Calif., originated as Alex Pryor’s senior project in college when he was 25. Guayaki seeks to achieve “environmental, social, and economic sustainability through conscious consumerism,” which is defined as “working in harmony with indigenous cultures and their environment to produce products that promote market-driven conservation.”

Each company was founded upon environmental principles, rather than incorporating them as an afterthought. The catalyst and inspiration behind establishing them is to serve as a model of how business can create positive economic progress. Unfortunately, their ultimate goal — a profitable business that produces eco-friendly products with minimal impact on the environment — is often hampered by lack of capital.

Dagoba co-founder Frederick Schilling lived off personal savings for a year, purchased a computer, and wrote a business plan for the company. Other financing has been a “family affair,” with Holderman and Schilling’s relatives making investments in return for stake in the company. After almost three years in business, Dagoba is growing and recently moved into a bigger facility. Although Dagoba’s operations are partially powered by alternative energy, it cannot afford to use 100% renewable energy due to the prohibitive cost.

Though significantly funded by several credit cards, Guayaki has been blessed with additional backing from the Hot Fudge Social Venture Fund, an organization created by Ben Cohen and members of the Ben and Jerry’s board of directors. The fund’s mission is to create “high-quality jobs, entrepreneurial capacity, and wealth among low-income people and the economies of distressed communities.”

These modest success stories, inspirational as they are, serve to highlight the challenges young entrepreneurs face in launching eco-friendly enterprises. Lacking track records in business, they are often perceived as risky investments. Yet without capital, they have no way of proving themselves.

Socially and environmentally responsible investing increased by 8% between 1999 and 2001, according to Social Investment Forum. As socially responsible investing continues to grow, we should give more opportunities to these visionaries. With proper mentoring and assistance, those inheriting the errors made by current business models can bring their creativity, energy, and enthusiasm to the challenges of maintaining profitability and sustainability — and serve as a model of how sustainable business can create positive economic progress.

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Johanna Schultz is the coordinator of environmental and social policy for the Thanksgiving Coffee Company in Ft. Bragg, Calif. Her own entrepreneurial experience includes designing, manufacturing, marketing, and distributing a line of hemp clothing. Schultz initiated and continues to facilitate the Mendocino County Green Party’s industrial hemp education working group. She is also a founding member of Sustainable Mendocino County and a former board member of the Mendocino Environmental Center.