Embracing Green Entrepreneurship: a case of Uzbekistan. A Pathway towards more Sustainable Future (Part 1)
- Orifjon Ahmedjonov
- Dec 18, 2024
- 7 min read
Abstract
Green entrepreneurship is a novel term used to represent a model of entrepreneurial activity which aims sustainability simultaneously generating revenue in operations. However, not all economies have completely embraced the green model today, there are certain challenges on the way to develop sustainably in all dimensions, especially for developing countries. Therefore, this article provides original approaches on green entrepreneurship practices and analyzed reasons for Green Businesses in case of Uzbekistan. The work uses wide range literature to validate claims made and it involves practical case studies and empirical analysis to construct innovative ways to address the given tasks. The results of conducted analysis indicate to Uzbekistan’s commitment to embrace green entrepreneurship practices through long-term government strategies capturing international cooperation and domestic efforts. It is evident that the county has already accomplished tangible outgrowth of improving entrepreneurial atmosphere, but still there is ongoing work to further develop the green model of entrepreneurship. Overall, Uzbekistan strives to become fully sustainable, undertaking long way pursuing this purpose, but still continues to make necessary stress on to becoming sustainable economy soon.
Introduction
The global effort to fight against human harmful effects on ecology has peaked in United Nations Conference on Environment and Sustainability in 1992. It was then the first time countries worldwide come to terms to collaboratively work for preserving our planet for the future generations. The United Nations under observance by global community has elaborated Sustainable Developments Goals which showcased necessity for ecological purity of all business types. Green Entrepreneurship is the concept that originated as a result of increased awareness to environmental issues that world faces today. It was formed in response to growing need for sustainable business practices to mitigate the damage that humanity has been inflicting to the Mother Nature throughout its existence. The green entrepreneurs aim to use novel solutions to minimize carbon footprint while also generating profit. They prioritize deploying renewable resources and reducing waste by promoting eco-friendly goods and services. Which consequently results to a creation of more environmentally friendly consumers, they accomplish this through informing about benefits of sustainable enterprises. The transformation of public opinion is the key mission to implement for spreading sustainability benefits, since less people will be willing to choose traditional-way made goods and services knowing that this may end up being extremely disastrous at the end for all of us. In turn, high demand for eco-friendly products causes producers to adapt to the market conditions, however, having switched to sustainable way of production the suppliers face cost-push challenge as alternative options are a way expensive in the short run: businesses will need to obtain advanced technology and implement eco-friendly practices. Moreover, aligning with legal requirements will be exhausting for entrepreneurs to follow with a lot time consuming deals to be made, a business will be forced to adjust its organizational operations complying to standards dictated by green enterprise models. In the short run, low consumer awareness of green businesses will make challenging for green businesses to win customer loyalty. However, still, there are potential hardships in the long perspective. The most vicious one is competitive market situation. As nearly all businesses will side for sustainable production path, there will be most competitive fight for clients soon enough. Another words, the green entrepreneurship would empower the demand and supply market mechanism creating unprecedentedly fair market competition, and also, stimulating private sector of the economy. So, this paper is going to analyze every single detail of what green entrepreneurship for Uzbekistan means and why Uzbekistan needs more green enterprises. This article will use wide variety of qualitative and quantitative data to address above stated objectives. Also, the paper intends to explore experience, this will include past and current and future strategic plans, of other peer developing economies in order to compare their records with Uzbekistan’s to learn about their missteps and propose viable ways for our target country to pursue in coming years. Initially, back in couple of decades ago, Uzbekistan has made its way developing in accordance with the UN Sustainable Development Goals since the first years of independence. The Republic of Uzbekistan has achieved remarkable growth after its independence in 1991 and transitioned from a Low-Income Country (LIC) to a Lower Middle-Income Country in 2011. Specifically, after the 2016 President elections the advancement has accelerated as a result of widespread structural reforms that has impacted every aspect of social, political and economical life in the country. The nation today targets to become a High Middle-Income County (HMIC) by 2030. To sum up, Uzbekistan saw a tangible improvement in its public sector binding to SDGs, and the country is expected to support green entrepreneurship by providing promotion or administrative assistance in years to come.
Research questions:
1. What green entrepreneurship for Uzbekistan means?
2. The reforms that were applied by governments of Uzbekistan in the last decades?
3. What green practices were undertaken by Uzbekistan’s small and middle scale enterprises?
4. What are the challenges encountered by entrepreneurs who went for green enterprise applications in Uzbekistan?
Research objectives:
1. Clarify why Uzbekistan should support its green businesses
2. Enlist green practices of small and medium size businesses
3. Point out the authoritative efforts of Uzbekistan
4. Addressing the barriers that green enterprise entailing entrepreneurs facing
Literature Review:
In a time where environmental concerns are in the foreground of global attention, the need to ensure sustainability has gained enormous importance. Uzbekistan, a Central Asian country with rich land resources and growing young population and dynamic economy, has the potential to fully transit to green entrepreneurship, a concept that unites fundamentals of business innovation with environmental consciousness. According to the resources, the green entrepreneurship covers creation of new businesses which imply to sustainable practices and also it would be driving force for innovation, environment-care, and also efficient usage of natural resources. In their study (F.Ziyayev, Xolbekov A, and Xolbekov A) have learned Uzbekistan’s cooperation on sustainable development iniriatives. And also, in his study Abdurashid Samanov has showcased current state of entrepreneurship and its prospects in Uzbekistan, suggesting viable proposals for further imposition of sustainability in entrepreneurship in the Republic. From another point of stance, Sabrine Ghari and Anis Omri’s study argued that entrepreneurship entails positive social and economical effects for developing economies but has negative consequences for environment. Initially, their research has explored the ability of entrepreneurial activity to boost economic growth, accomplish environmental objectives, and to enhance social dimension of life of citizens of developing countries. For further reading, in (Schumpeter, 1934: Dean & McMullen, 2007) the role of entrepreneurship was signified for its contribution in development of society. Ironically, the same entrepreneurship concept was condemned for its ecological impact as a result of business activities by group of researchers (Mrkajic, Murtinu & Scalera, 2019;Demirel, Cher Li, Rentocchini & Tamvada, 2019). Furthermore, researchers (I. Silajdžić, Sanda Midžić Kurtagić, B. Vučijak) believed in their study of Bosnia and Herzegovina that transition economies encounter tangible barriers in a way towards promoting green entrepreneurial practices; and also, they stated for businesses to be successful factors as personal motivation, mission, loyalty, and sustainability play crucial role. Apart from these, the study conducted by Chinese researchers (Fengdi Chu, Wei Zhang, Yuan Jiang) implicate that government organs can strengthen the entrepreneur engagement onto more sustainable behaviors by compassion and ease of use on public policies. And the study also examines how private sector perceive green policies focusing on two kinds of entrepreneurial behavior: green product innovation and green process innovation. In the study conducted by Hanne, Fatima Zahra, it has been well explained that countries now aware of importance of eco-friendly practices and preserving biodiversity and they willing to adopt Green Information Technology (Green-IT), which is combined version of social and environmental aspects together with economic growth performance, that aims to reduce environmental damage of IT practices. The author described what Green-IT represents today and explained why developing countries should adopt it in an example of Morocco. Meanwhile, the need of green start-ups for transforming an economy into green is highlighted in the study conducted by Sreenivasan, A., Suresh concluding from previous literature that sustainable start-ups have strong influence on competitiveness of markets. The research also provides appropriate means of funding of green start-ups aiding the need for the wide presence of green entrepreneurs in a market to be improved. So finally, as Uzbekistan often is selling its land resources, which is real measure of expansionary monetary policy, to prevent budget deficit; we thought reasonable to include the research conducted by Yin, H.-T., Chang, C.-P., & Wang, H. in 2022 investigates the impact of monetary policy to green innovation in roughly 133 countries. The research found that the effect of expansionary monetary policy has significantly positive impact to green innovation performance, no matter whether static or dynamic the model is.
There were many research papers on the topic what green entrepreneurship is and its effects to developing economies, but there was not one that broadly analyzed the strategic steps that have been taken by our target country - by Uzbekistan to open fully to the outer world. What is currently being elaborated by Tashkent is to reach most prosperous economic state, implementing ideal social-economical, environmental and technological improvements ever possible for the citizens of Republic of Uzbekistan. Therefore, acknowledging that fact, we decided to fill this gap, as we think we could succeeded in our mission.
Methodology and Results:
The study conducted undertook PESTEL analysis and brought wide range of other related info-graphics to better illustrate given claims.
In conducted analysis, we found huge amount work there has been done in the last three decades throughout all fronts. In politically, Uzbekistan has been collaborating with international partners to improve stability and prosperity in the nation. As an example, we can bring recent reforms in tariff schemes and other internal fixations in trade and commerce laws to join World Trade Organization (WTO) by 2026. By joining to WTO, Uzbekistan would prove its transparency of the market conditions for entrepreneurship, it would showcase pure market competition in terms of transactions with outer world, to foreign investors who are wishing find stable marketplace to put money in. After conforming to the WTO market requirements, the country will be even more open for international exposure which would mean inflow of massive resources from abroad to support country’s economy, including thrive of green entrepreneurship in the Uzbekistan. By the time, Uzbekistan is planning to home foreign IT firms, individual remote IT-specialists.
FIGURE 2: UNEMPLOYMENT RATE 2004-2023
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