ΤΕΛΙΚΗ ΕΡΓΑΣΙΑ

Running head: SMEs AND GREEN ENTREPRENEURSHIP 1

MSc IN ECONOMIC ANALYSIS:UNIVERSITY OF PELOPONNESE

TITLE:SMEs AND GREEN

ENTREPRENEURSHIP

STUDENT:ILIAS PAPPAS

SUPERVISOR:NIKOS APOSTOLOPOULOS

DATE:5/2016

SMEs AND GREEN ENTREPRENEURSHIP 2


Abstract

The aim of this paper is to examine the way in which small and medium sized enterprises (SMEs) adapt their financial and operational planning in order to develop green entrepreneurship. This is examined though two different practices which may be followed by companies: policies and strategies that lead enterprises to energy upgrade and policies and strategies relating to environmental protection. Regarding the dataset this paper draws upon, come from 100 SMEs of Tripoli (Arcadia, Greece).The process of data collection followed was by sharing questionnaires to the sample of companies in question. The novelty of this research, in comparison with other surveys, is the fact that the green entrepreneurship is approached not only in the fields of energy or environmental efficiencies but this survey attempts to introduce techno-economic parameters with related questions in the questionnaires that are shared in the SMEs.


Introduction

There is much debate in recent years on the development of green entrepreneurship as well as contamination of our planet growing increasingly and natural resources seem not to be inexhaustible. The above factors cast doubt on maintaining sustainable development. Sustainability is defined as:'' meeting the needs of the present generation without compromising the ability of future generations to meet their own needs'' (World Commission on the Environment and Development, WCED 1987, p.43). (Hall et al. 2010) points out that the idea of sustainability has turned into a priority in business sector and this kind of entrepreneurship helps to create more sustainable societies. Furthermore the consequences of globalization and last years financial crisis have made up this virgin outlook. Several western countries have decided to elevate green entrepreneurship as a high priority in their future economic policy and also believed as the key of reducing unemployment and increase the income growth ( Commission of the European Communities, CEC 2009).

Authors named green entrepreneurs or eco-entrepreneurs all those who create enterprises based on the ideas of sustainability and greenness, producing and selling green products and services (Kirkwood & Walton, 2010). In conclusion, green entrepreneurship could be broken down into two levels of examination : rooted companies which follow ecological management methods either eco-friendly production techniques and neoteric style business depend on natural resources (Nikolaou et al., 2011).The business of the first category seem to adopt the theory of product differentiation, a theory that is based on creating innovations and succeed on achieving competitive advantage ( Reinhardt , 1998 ).A positive relationship between environmental management practices and competitive advantage and innovations profits arising from previous studies (Nikolaou et al., 2011). (Menguc & Ozanne, 2005) classify environmental entrepreneurs in two categories: those who try to find new market opportunities by adopting proactive environmental strategies and those that place environmental matters in the heart of their business plan. In the other hand, we have the neoteric style business (start ups) which have a double target: environmental protection and as much as possible better use of natural resources for creating new products (Nikolaou et al., 2011).(Cohen & Winn, 2007) give the definition of green entrepreneurship as "the examination of how opportunities to bring into existence future goods and services are discovered, created and exploited, by whom, and with that economic, psychological, social and environmental consequences" (p.35).

The aim of this paper is to examine the way in which small and medium sized enterprises (SMEs) adapt their financial and operational planning in order to develop green entrepreneurship. This is examined though two different practices which may


be followed by companies: policies and strategies that lead enterprises to energy upgrade and policies and strategies relating to environmental protection.

The second half of the century, the role of business in protecting the environment is in the spotlight (Hoogendoorn et al., 2014).The literature is rich on the issue of environmental protection, however the role of SMEs is still underexposed as well as the focus is given to large enterprises (Hoogendoorn et al., 2014).The above neglect, contrasts with the case that approximately the 60-70% of total contamination comes from the activities of SMEs (Hoogendoorn et al., 2014). SMEs constitute the 99% of all European business, having no more than 250 employees. They offer almost the 65% of employment in private sector while their contribution in value -added created by all European enterprises is up to 50%. They are the main reason of the increasing European wealth and growth, also SMEs are the pioneer enterprises in innovation, research and development.( European Commission , 2012).

The green process describes a new way of production based on green strategies and techniques. Through this process, every product or system is produced giving priority to energy and new raw materials saving, replace input components, reducing harmful outputs and carrying out recycling, by making outputs to inputs. (Deif, 2011).

Review

Green process (greenness) contains all strategies and techniques that improve the environmental performance of products and is important in all stages of production. Green design is a significant factor in producing process as it helps to improve the environmental performance of product (Knight & Jenkins, 2009).Adopting green design is considered to be the key for creating innovations, taking off brand positioning and upgrade business communication (Santolaria, 2011).In order to succeed on the green design (Vezzoli & Sciama, 2006) adopt life cycle design approach .(Grote et al. 2007) propose a design methodology that allows designers create products in which the priority is given to their characteristics rather than to financial issues.(Liao et al. 2013) have suggested an another way to add green design characteristics to products. It happens with the participation of consumers, by revealing their preferences on alternative green products weighted against their environmental aspect which drive in sustainable green design. (Chu et al. 2009) have proposed the use of CAD application (Computer-Aided Design) which helps to reduce the assembly and disassembly cost.(Russo & Pizzi 2014) used Eco-Opt CAD ,an application that helps to improve Life Cycle Assessment data for product structure design.

(Dief 2011) has presented a method for measuring the green productivity and elevate the greenness of each single process. For this reason he created a 4-step


procedure which consists of the following :i) rank the present greenness, ii) make an upgrade plan, iii) run the project and iv) preserve the improvement.( Azzone & Noci, 2014) have proposed as a method to succeed on the greenness of manufacturing methods, the Performance Management System (PMS). The disadvantage of this method is the fact that fails to compare the greenness of operational systems in the same sector. (Jonrinaldi & Zhang, 2010) have presented a mathematical model that could help suppliers and firms use green natural materials and green components. ( Tsai et al. 2011 ) have tried in thei model to explain the fact that green investment could reduce the pollution. ( Elsayed et al. 2013) have found that green process in manufacturing can reduce the cost of this operation by 10,8%. Moreover,(Vittaldas et. al. 2012) have discussed in their model about production ways which can be used for the calculation of the energy that is lost during the production process and also other power parameters.

Three important conclusions arising from the research of (Hoogendoorn et al., 2014) about SMEs and the followed environmental practices. The first states that the extent of SMEs joining in environmental practices differs significantly between the types of practices, the kind of firms, the sector and the countries. Secondly, there are dissimilar influences of each firm characteristics relating to the environmental practices, which are followed. The third conclusion is relevant to the sovereign idea that small business are reluctant to invest in environmental practices, because it seems to be a waste of money for them, however, such a simplification is not obvious.

"Logistics is the management of the flow of goods from source to destination for the purpose of satisfying the customer demand"( Niraj et al., 2014, p.376).Green logistics can upgrade the business environmental performance. ( Lau, 2011) has made a green logistic performance index for measuring the greenness of logistic process. (Ubeda et al. 2011) claim that green performance can be improved by upgrading the logistic operations. (Pishvaee et al., 2012) have presented a mathematical programming based model for designing which can improve logistic greenness and simultaneously reduce the cost.

We close the review with the results of the study of (Nikolaou et al., 2011), in which were proposed the most significant factors of a long term plan of green entrepreneurship by DAS (Greek Development Agencies).These factors are the next: subsistence of desired natural resources and physical conditions, subsistence of environmental preserved areas, existence of PDO (Protected of Designation of Origin) and PDO (Protected of Geographical Indication) product challenges ,social attachment ,more watchful administration of European Funds for the environment and also ways to expand the inputs of all European and National Funds. ( Parish, 2010 ) in his studies ,also consider the above factors as the necessary parameters in order to succeed on the developing of Green Entrepreneurship.


Background and Hypotheses

We created 4 basic hypotheses and 6 secondary, in order to confirm or decline the effects of green strategies followed by the SMEs.

SMEs trend for greenness

The majority of surveys' on greenness had in the spotlight the large businesses. Such a perception has been cultivated because of some unique characteristics of SMEs that make difficult the adoption of green strategies. (Pernini et al., 2007 ;Uhlaner et al., 2012) conclude in a positive relationship between the firm size and ''greenness''. The cost of ''greenness'' is an another inhibitor. The managers of SMEs have the opinion that such costs will not bring back enough financial revenues to be worth the investment (McKeiver & Gadenne, 2005). Also, the management system followed by SMEs focuses much more on daily business and try to be direct, responding to significant circumstances management (Weerasiri & Zhengang, 2012). In the opposite ,large businesses have a long term-management system that makes easier the adoption of greenness. Furthermore, large businesses focus on scale economies and resources, something does not happen in SMEs ,which means they want to be engaged properly if they are to involve in improved green strategies (Condon, 2004; Walker et al., 2007). As a conclusion of the above, it is easier to state that SMEs have not ''greenness'' in the centre of their behavior.

Hypothesis 1. SMEs cannot incorporate green strategies in their activities.

Green consumers paying willingness

This survey's target was the examination of the green entrepreneurship by introducing techno-economic parameters in the questionnaires that were given to entrepreneurs in order to run the survey. An important factor for all companies is the volume of the sales of their products. The sales factor is much more important for the green firms, because the incorporation of green strategies may increase the production costs. It is interesting to see, if the entrepreneurs consider that consumers are ready to pay this extra price premium or not.

In terms of consumers ,surveys show that they are willing to support the firms that follow eco-friendly strategies and also pay a premium for green products and services (Hu et al., 2010).The last years, consumers have connected their purchasing behavior with the ecological problems that caused because of this behavior, so they


have decided to adjust not only the purchasing behavior but also the shopping behavior to more ecological terms (Laroche et al., 2001).In the years between 1990 and 1994 surveys proved that there was a strong tense for green products/services and by extension a strong willingness from consumers to pay more for these products (Coddington 1990;Suchard &Polonski 1991;Myburgh-Louw & O'Shaughnessy 1994). According to (Speer, 1997) consumers are willing to pay an average 5% premium for green products and services.(Mostafa, 2009) argued that not only the environmental concern but also the attitude contribute in the consumers positive intention to buy green products. Also (Beckford et al., 2010) concluded in their survey, that the environmental attitude has an important impact on consumer green purchasing behavior.(Creyer & Ross, 1997) by examining up to 250 customers ,found that customers are willing to pay more for products made by companies that follow green ethics. The willingness of paying more for eco-friendly products/services is confirmed on the research of (Kang Ho et al., 2012) in which was examined the case of hotels initiatives.(Drozdenko et al., 2011) have shown in their study that consumers are willing to pay a premium for green products, however the premium is not the same in all products categories.

Despite the willingness to spend more for green products (Laroche et al., 2001) have proposed on his survey that this willingness does not always conclude in spending more, because of the very higher prices of green products. Also,(Michaud et al., 2011) found in their survey that remanufactured products, which are "green" products too, are valued less by consumers compared with the conventional, no matter they have informed of their eco-friendly impacts ,so there is no evidence for willingness to pay more for such products. The literature states in majority positive response of consumers to the increased price of green products. However, it is important to see if the side of entrepreneurs have noticed such a ''green'' behavior or willingness to pay more for green products. Practically, we want to see if the tense of consumers for greenness and to pay more for green products becomes visible to entrepreneurs of SMEs.

Hypothesis 2. Entrepreneurs believe in the positive feedback (willingness to pay more) of their green products, by consumers environmentally aware.

Government and E.U policies for greenness

The financial access is a definitive factor for the SMEs, in order to succeed on the sector of ''greenness''. It is important for them the existence of financial opportunities and any other motivations which could improve the firms' green profile.


Some important policies favoring green entrepreneurship are: projects financed from national, European or global funds, certificates of environmental management, motivations related to the employment policy of the firm, privileged taxation and tax exemptions, government financial grants, creation of an adequate institutional framework and simultaneously reduction of the bureaucracy, adoption of cutting-edge technology and reduction of waste.

Green entrepreneurship is helped with many policies as we mentioned above. The main supporters of these policies are the National States (governments) of the country and the European Union (E.U) in case of Greece. The Greek Government and the European Union provides motivations and fundation for those SMEs that are willing to follow green strategies. However, it would be very interesting to examine if SMEs take advantage of these policies or the entrepreneurs believe that these policies are not enough efficient in their activities. Another two hypotheses created to check entrepreneurs beliefs in the above matter.

Government policies and fundation:

Creation of the Development Law which is updating so far. Target of this law is to encourage the investment projects that are environmentally friendly and give emphasis to new and renewable technology.

The current National Strategic Reference Framework which framework is set until 2020, through individual programmes taking place regionally in Greece aims to help entrepreneurship and especially those firms that invest in innovation, sustainability and greenness.

The Guarantee Fund for SMEs has a complementary and supportive role providing guarantees on SMEs loans. This is very useful for SMEs with difficulties in financial access.

Hypothesis 3. The States (Greek Government) support the efforts of green entrepreneurs (SMEs) to incorporate green strategies.

European Union policies and fundation:


The programme LIFE is a European Union's programme which target is the implementation of eco-friendly initiatives, and is based in three parameters : a) natural environment and biodiversity, b) environmental policies and governance, c) Information and Communication.

The Marco Polo programme started in 2003 and its aim was the funding of cargo transportation in a manner that reduces the environmental impacts. Because of its limited success, the European Commission decided in 2014 to stop this programme and incorporate its actions in Trans-European Transport Network (TEN-T).

The Structural Funds and the Cohesion Fund are European financial tools that help the poorer regions of the European Union. These funds aim to reduce regional disparities in wealth and opportunities. The current framework is set from 2014 to 2020.

The European Regional Development Fund (ERDF) aims to increase the competitiveness of SMEs and interregional cooperation too. This fund finance firms of all sectors.

The JEREMIE programme helps by providing loans to SMEs in order to improve the business climate. The benefit of this programme is the favorable conditions of loan repayment.

The CIP programme finance European SMEs in order to help them follow more green practices and be more innovative in their activities. It provides better financial access to SMEs and also supporting services.

Hypothesis 4. European Funds have contribution in the greenness process of SMEs.

Before we build our secondary hypotheses, it would be important to highlight in some SMEs characteristics that could determine the green behavior of each single enterprise. This is a survey on SMEs of Tripoli (Arcadia, Greece), however all examined enterprises have their individual characteristics and peculiarities. This means that they perceive differently the concept of green entrepreneurship and by extension the following green strategies.

First of all needed to be established a relation between the firm size and the greening process. Several studies reached on the conclusion that the size of firms influence the following environmental strategies ( Bianchi & Noci, 1998 ). Most


views converge on a positive relationship between the firm size and the following greening process ( Pernini et al.2007;Uhlaner et al.2012 ).The annual turnover, also influence positively the greenness process of SMEs. (Konstantinou et al.;Westwood, 1990) have mentioned as a weakness of SMEs, compared with bigger enterprises, the fact that competitors with upper income and/or earnings, market split and/or knowledge have bigger ability of adopting ''green'' strategies

Hypothesis 5. The turnover (size) of firms is positively related to their greening process.

The business sector of firms is relevant to the level of greening processes that are followed. Resource-intensive sector and material sectors (construction, manufacturing) seem to be positive related to greening process ( Orsato 2006;Williamson 1991 ). Adopting green strategies not only reduce the production cost but also helps to create a differentiation advantage between the others firms of sector ( Orsato 2006;Uhlaner et al.2012 ). A reason that makes firms on material sectors adopt environmental practices is the fact that they accused of the more environmental damage in comparison with the less resource intensive business (Williamson et al. 2006). The documentation in real conditions of the above arguments is difficult (Hoogendoorn et al., 2014). ( Graafland et al. 2003 ) has concluded that German firms in metal manufacturing and construction are more positive to environmental practices than firms in financial and retail sectors.

Hypothesis 6. The sector where the enterprises belong, strongly affects green strategies.

The firm age is also a parameter that influence the investment of SMEs in greenness (Hoogendoorn et al., 2014 ). (Neubaum et al. 2004 ) have proposed that the new firms because of their financial difficulties and the general existence insecurity might be more environmentally immoral and by extension more negative in green strategies. However, (Hockerts & Wustenhagen, 2010) suggest that the newest firms are more environmentally sensitive.

Hypothesis 7. The old firms are more reluctant in adopting green strategies

An investment in greenness is a high cost activity . This fact force firms to find an external financing. However, the possibilities for all firms to find a financial resource are not the same. Small and large enterprises differ in the access on financial resources (Ang 1991;Berger and Udell 1998).It is difficult for small firms to adopt


greenness because of the financial costs ( Pacheco et al. 2010 ).The lack of financial resources make small firms have low performance in greenness ( Bradford &Fraser, 2008). Empirical surveys show that SMEs much more need financial support rather than non-financial support in order to adopt green strategies (Hoogendoorn et al., 2014). In the above researches the firm size seems to be positively related to the external financing for greenness. This survey focuses on the relationship between the firm's age and the external financing for green strategies.

Hypothesis 8. The newest firms have fewer possibilities getting external financing for green strategies.

The present survey also tries to correlate the financial turnover of the firms with the beliefs of entrepreneurs in the importance of having a business plan containing green strategies, especially for the new enterprises. It is generally acceptable that the ''rich'' SMEs see positively the greenness processes because of their ability to spend more for communication, advertisement and promotion of their new ''green'' products (Westwood, 1990).

Environmental Management is turning to a strategic matter for SMEs (Klassen & McLaughlin, 1993). SMEs need a Green Strategic Plan document in order to reach Green Strategic Management. This document contains the environmental business plan of the firm: goals and future plans, life cycle schedule of today products, new products' plans, virgin markets to be found, new technologies and managerial focus. ( Nulkar, 2014). Leadership is defined as an important element in order to succeed on greenness process ,so the majority of SMEs that follow green strategies have a leader (CEO) solely responsible for these activities (Buck Consultants, 2010). All systems that are used in the production activities and in supporting activities must be environmentally harmless (Mizuno, 1988). Greenness targets must be part of the annual business plan of SMEs and also the results of greenness progress must be checked annually too (Hunt, 1990).Based on the above literature, we create the last two hypotheses.

Hypothesis 9. The firms with bigger turnovers believe much more in green (management) business plan, especially for the new enterprises.


Hypothesis 10. There is correlation between the firm age ,the existence of a business plan and the beliefs of entrepreneurs in the importance of having a business plan containing green strategies, especially for the new enterprises.

Methodology

In this study we present the results of a field research that was conducted on

Greek area. In order to examine our main question, which is the green

entrepreneurship on SMEs, we collect data through the use of a questionnaire that was

distributed on Greek professionals. This questionnaire was collected through the

personal (direct) method, as we expected a bigger percentage of filled questionnaires.

The questions were designed in a proper way to measure the green entrepreneurship,

while we encourage the entrepreneurs to fill all the questions. In order to eliminate

possible wrongs, we used closed questions, where the entrepreneurs had to choose

among different answers. We used at most a Likert scale in order to measure the

accordance or not with several proposals.

More, we used the cronbach’s alpha as a measure of internal consistency

(reliability). In fact, cronbach’s alpha is a measure of scale reliability and is not

considered as a statistical test. A high value for cronbach’s alpha means that the

measure is not unidimensional.

At first, we conducted a pilot survey (collected 15 questionnaires) in order to

avoid possible errors on the questionnaire. In that way, we were able to augment both

the questionnaire’s and the survey’s efficiency and reliability. So, we used the spent

money, the time and the effort in the most efficient way possible to achieve success in

our survey. Then, we distributed our questionnaires on entrepreneurs at random,

ensuring for lack of bias.

Our questionnaires were encoded using specific numbers for each answer

given, in order to quantify our quality variables. We examined the descriptive

statistics of several variables to describe our sample. Then, we used several regression

analyses to examine if there are several important relations among the variables used.

The last part of our analysis included the examination of several correlations among

the variables.


Data – Sample’s Description

Most of the enterprises (37%) are considered as personal. General partnerships are

following at 30%, Limited partnership at 20% and Limited liability company at 13%.

In the meanwhile, 28% of them are operating at least for 12 years, while only 8%

operate for less than 3 years. More, 95% of them operate throughout the year. 45% of

the enterprises employee 6-10 people, while only 2% employee more than 21 people.

45% operate on trade sector, 21% on food and drink, 19% on construction and 15%

on services. The annual turnover for the majority (41%) is more than 200.000, while

the less (5%) is till 50.000. More, 54% of the enterprises support that they have not a

business plan.

Legal form Percentage

Personal enterprise 37%

General partnership 30%

Limited partnership 20%

Limited liability company 13%

Firm age Percentage

0-3 years 8%

3-6 years 17%

6-9 years 22%

9-12 years 25%

12 and more years 28%

Staff Percentage


1-5 people 22%

6-10 people 45%

11-15 people 24%

16-20 people 7%

21 and more people 2%

Sector Percentage

Trade 45%

Construction 19%

Food and drink 21%

Services 15%

Turnover Percentage

0-50.000 5%

50.001-100.000 10%

100.001-150.000 15%

150.001-200.000 29%

200.000 and more 41%

Results

Hypothesis 1


We examine the relation between the energy upgrading process from the

beginning of an enterprise with the incorporation of energy strategies and policies for

energy upgrading during its operational time. The estimation output is set equal to:

Energy upgrading process as a beginning priority = 0.736 + 0.551*Incorporation of

Energy strategies and policies (0.028) (0.000)

The results reveal that there is a positive and statistical significant relation between

the two variables.

More, we examine the relation between the environmental protection from the

beginning of the enterprise with the strategies and policies that the enterprise

incorporates. We find:

Environmental protection as a beginning priority = 1.145 + 0.495*Incorporation of

environmental strategies/policies. (0.001) (0.000)

The results indicate that there is a strong positive and statistical significant relation

between the variables.

So, we reject the null hypothesis, that the SMEs cannot incorporate green

strategies at their activities, as the regressions analyses indicate that there is

relation between them.

Hypothesis 2


We examine the relation between the possible increase of sales after the

adoption of environmental protection practices and the willingness of consumers to

pay a higher price in order to obtain it. The regression output is:

Increase of sales after the adoption of green practices = 0.846 + 0.443*Willingness of

consumers (0.001) (0.000)

We accept the null hypothesis, as our results indicate that the consumers are

willing to pay more in order to by a green product.

Hypothesis 3

We examine if the states support the efforts of SMEs to incorporate green

strategies through the motivations and the encouragement that the government gives.

The estimation output is:

Sustainable development through the adoption of policies/strategies =

3.120 + 0.285* Government (States) Motivations for energy upgrading +

( 0.000) (0.001)

0.141*Government (States) Motivations for environmental protection

(0.102)


Our results indicate that there is a positive and statistically significant

linkage with the given motivations for energy upgrading to the SMEs, while the

help (motivation) from the government relating to the environmental protection

is found positive but statistically insignificant. The results are contradictory and

we are not able to have a clear result.

Hypothesis 4

We examine whether the European funds contribute in the greenness process

of SMEs. The estimated equation is:

Sustainable development through the adoption of policies/strategies = 5.419 +

(0.000)

0.054*European funding programme for energy upgrading -

(0.642)

0.695*European fundation for environmental protection

(0.012)

The results indicate that there is an insignificant positive relation between

the sustainable development and the European funding programme for energy

upgrading and a negative but statistically significant relation with the European

Fundation for environmental protection. Based on these results we are able to

disagree with the examined null hypothesis.


Hypothesis 5

We find that there is a positive relation between the enterprise’s turnover and

the incorporation of energy upgrading strategies/policies during its operational time

and the incorporation of such strategies for environmental protection. Though, the

relation is not significant, which means that we cannot have a clear result.

Incorporation of energy

strategies/policies

Incorporation of

strategies/policies for

environmental protection

Turnover 0.013 0.118

Hypothesis 6

Negatively correlated in a non-significant way is the sector that the enterprise is

activated with the energy upgrading strategies/policies and the strategies/policies that

the enterprise implements to protect the environment. Though, as the relation is not

significant we cannot have clear results.


strategies/policies

Incorporation of



Sector -0.009 -0.060

Hypothesis 7


Negatively correlated, in a non-significant way are the activities that take into

account the energy upgrading and the environmental protection with the operational

time of the enterprise. Even if we find that there is a negative correlation, we are

able neither to accept nor to deny the examined hypothesis, as the results are not

significant.


strategies/policies

Incorporation of



Firm age -0.115 -0.038

Hypothesis 8

A European funding programme is negatively correlated with the operational

time of an enterprise (ρ=-0.280) at a 5% level, that means that the most the funds from

a European programme, the less its operational time. Though, funding for

environmental protection is correlated in a non-significant level. Due to the

statistically significant correlation, we are able to accept the examined

hypothesis.

European funding

programme for energy

upgrading

European funding to adopt



Firm age -0.280** 0.014

Hypothesis 9


The enterprises’ turnover is negatively correlated with the importance of the

business plan and its relation with the environmental protection. Though, this

correlation is not significant which means that may not exist. So, our results are not

clear in linkage with the examined hypothesis.

Importance of the business

plan containing

policies/strategies for

energy upgrading


plan for environmental

protection

Turnover -0.182 -0.143

Hypothesis 10

The operational time of the enterprise is related to the business plan at 5%

level. This means that the existence of a business plan augments the operational

time of the business.

Business plan

Firm age 0.457**

In the meanwhile, the existence of a business plan is negatively (-0.285**) related to

its importance which means that the less important for an enterprise the business plan

is, the less possible is its existence. The same results are extracted when the business

plan is examined with the environmental protection. So even if the correlation

coefficients are negative, there seems to exist a relation with the existence of a

business plan.

Importance of the business plan

containing policies/strategies for

energy upgrading


plan for environmental

protection

Existence of business plan -0.285** -0.281**


ConclusionsThis research concludes that Green Entrepreneurship is not a basic priority

and target in the business plan of the SMEs in Greece. There is not a central government plan in order to help this kind of entrepreneurship. However, entrepreneurs try and finally manage to incorporate some kind of greenness in their enterprises (SMEs). Entrepreneurs also believe that consumers are willing to pay for green products, increasing their sales volume. From the research is also found that the entrepreneurs are not well informed of the fundation and motivations that are given from the local states (Government) and the European Union, as they don't take many advantages of them.


* THE QUESTIONNAIRE IS SUBMITTED (AFTER REFERENCES)


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QUESTIONNAIREQUESTIONNAIRE FOR THE SMEs IN TRIPOLIS (ARCADIA).MSc

IN ECONOMIC ANALYSIS OF THE DEPARTMENT OF

ECONOMICS, UNIVERSITY OF PELOPONNESE.

first section : general enterprise information.

1). Legal form of enterprise:

Α) personal enterprise Δ) limited liability company

Β) general partnership Ε) society anonym (s.a)

Γ) limited partnership ΣΤ) other

2). Operational time of enterprise (years):

Α)0-3 Δ)9-12

Β)3-6 Ε)12 and more

Γ)6-9

3).The enterprise operates throughout the year (12

months):


Α)YES Β)NO

4). How many people are employed by the enterprise as

permanent staff:

Α)1-5 Δ)16-20

Β)6-10 Ε)21 and more

γ)11-15

5).In which sector does the company operate?

Α)trade Δ)services

Β)construction Ε)other

Γ)food & drink enterprises

6).Turnover of the enterprise (yearly):

Α)0-50.000€

Β)50.001€-100.000€


Γ)100.001€-150.000€

Δ)150.001€-200.000€

Ε)200.000€ and more

7).Has the company a business plan:

Α)YES B)NO

SECOND SECTION: Strategies and policies of

energy upgrading

8).Has the business/enterprise financed, utilizing a

European Funding programme in order to reach in

energy upgrading.

Α)Yes Β)No


9).The enterprise gave priority in strategies and policies

of energy upgrading at the beginning :

Not at all slightly moderatel

y

very extremely

1 2 3 4 5

10).The enterprise incorporate strategies and policies for

energy upgrading during its operational time:


y

very extremely

1 2 3 4 5


11).Which of the following practices have you adopted in

order to achieve on the energy upgrading of the enterprise:

old frames (windows, doors) replacement 1

replace light fixtures with more economical and efficient lambs.

2

insulation of walls, floors or roofs 3

installation of boiler (using liquid or gas fuel) 4

installation of (geothermic, hydrothermal,)pump for cooling and heating

5

installation of solar water heater or replacement of solar panel

6

installation of BEMS (building energy management systems)

7

installation of systems for energy saving 8

insulation of warm water pipes 9

installation of photovoltaic panels for energy self sufficiency of enterprise

10

more than one practices adopted 11


12).Do you notice any financial benefits ,for the

enterprise ,because of the energy upgrading (reduction of

accounts):


y

very extremely

1 2 3 4 5

13).Would you be positive to energy upgrading of your

enterprise even if there was no financial benefit outside the

environmental protection?

Α)Yes Β)No

14).In how many years do you expect to do the depreciation

of the investment in energy upgrading:


1-3 years 3-6 years 6-9 years 9-12years 12 and more

1 2 3 4 5

15).Is the time of the depreciation an inhibitor factor of the

investment in energy upgrading?

Α)Yes Β)No

16).Was the staff willing to contribute in the effort for energy

saving and by extension help the enterprise has financial

profit:


y

very extremely


1 2 3 4 5

17).How important is for a new enterprise to have a business

plan containing policies and strategies of energy upgrading?


y

very extremely

1 2 3 4 5

18).Are the motivations that are given by the

states/government sufficient for the entrepreneurs in order to

start an investment in energy upgrading:



y

very extremely

1 2 3 4 5

THIRD SECTION: Strategies and policies for


19).Have you funded using money that come from the

European Union in order to adopt strategies and policies for

environmental protection?

Α)yes Β)No

20).Was the environmental protection (recycling or waste

management) a priority in the beginning of the enterprise?



y

very extremely

1 2 3 4 5

21).Do you incorporate, in some business operations,

strategies and policies of environmental protection?


y

very extremely

1 2 3 4 5

22).Which of the following environmental practices have you

adopted

paper recycling 1


natural resources saving 2

recycling old products and use them as raw materials

3

use of environmental friendly raw materials 4

reduction of pollution by adopting new technology

5

restriction of perishable 6

reduction of waste 7

more than one practices 8

23).How important is for the new enterprises to have a

business plan containing strategies and policies for

environmental protection:


y

very extremely

1 2 3 4 5


24).Do you think that the adoption of policies and strategies

of environmental protection contribute to sustainable

development:


y

very extremely

1 2 3 4 5

25).Do the states/government really help and encourage the

efforts of enterprise for environmental protection


y

very extremely


1 2 3 4 5

26).Have you notice any sales increase after adopting

practices of environmental protection.


y

very extremely

1 2 3 4 5

27).Are the consumers environmentally conscious. Do you

think they would be willing of paying a higher price for an

environmental friendly product.


y

very extremely


1 2 3 4 5

Thanks for your time!


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