Green Ideas, Big Impact: The role of innovation in modern entrepreneurship

What if the next great business idea is already around you? 

Today, young people have more tools than ever to turn an idea into something real. Technology makes it easier to create, test and share new solutions, while growing environmental challenges are creating demand for products and services that are smarter, more sustainable and more responsible.

This is where green entrepreneurship comes in. It is not simply about “being green”. It is about looking at the world around us, spotting a problem, and asking a different question: Can I solve this problem in a way that creates value – for people, for the planet, and for business?

Rethinking the way we do things

We often do things simply because “that’s the way they have always been done.” But what if we stopped for a moment and asked: Can we do this differently?

As technology and markets change, we need to create solutions, not new problems. This is where green entrepreneurship comes in finding new ways to create value while using resources more responsibly.

The numbers are clear: global resource extraction has tripled in the past five decades, while the world generated around 2.56 billion tonnes of waste in 2022. At the same time, 93% of EU SMEs already use at least one resource-efficiency measure, such as reducing waste, saving energy or recycling.

These challenges are also opportunities. Every product that is thrown away, every resource that is wasted and every inefficient process can lead to a simple question:

For young entrepreneurs, innovation does not have to mean inventing something completely new. It can mean finding a smarter way to solve an everyday problem – through a new product, service, technology or business model.

Sometimes, the first step towards a great green business idea is simply looking at an ordinary problem from a different perspective.

What if the next great business idea is already around you?

Today, people with an entrepreneurial and innovative mindset, especially young people, have more opportunities than ever to turn their ideas into real business ventures. Digital technologies make it easier to create, test and share new solutions, while growing environmental challenges are creating demand for products and services that are smarter, more efficient and more sustainable.

This is where green entrepreneurship comes in. It is not simply about “being green”. It is about looking at the world around us, identifying a real problem and asking a different question:

How can I solve this problem in a way that creates value for people, for the planet and for business?

As technologies, markets and consumer expectations change, entrepreneurs have an opportunity to rethink how products are designed, services are delivered and resources are used. Green entrepreneurship is part of this transformation – finding new ways to create value while using energy, materials and other resources more responsibly.

The challenge is significant. Global resource extraction has more than tripled over the past five decades, while approximately 2.56 billion tonnes of municipal waste were generated worldwide in 2022. At the same time, many businesses are already introducing resource-efficiency measures, such as reducing waste, saving energy and increasing the use of recycled materials.

But challenges can also become opportunities.

Every product that is thrown away, every resource that is unnecessarily consumed and every inefficient process can lead to one simple question:What if there is a better way?

For an entrepreneur, this question can be the starting point of an entirely new business idea.

Innovation Does Not Have to Start in a Laboratory

Innovation is often associated with advanced technology, large investments or revolutionary scientific discoveries. But innovation does not always start in a laboratory. Sometimes, it starts with a simple observation:

Something could work better and differently.

For young entrepreneurs, innovation can mean creating a new product or service, improving an existing product, introducing a more efficient process or developing a completely different business model. The point is not necessarily to invent something that has never existed before, but to create a solution that delivers real and sustainable value.

A green innovation, therefore, should not simply be “green”. It should address a real problem, respond to a genuine customer need and make economic sense – while reducing its negative environmental impact.

This is where entrepreneurship and innovation come together.

From a Green Idea to a Business Opportunity

A promising green idea is only the beginning. To become a successful business venture, it needs to move from an interesting concept to a solution that people genuinely want, are willing to use and, ultimately, are willing to pay for.

The journey can begin with four simple questions:

1. What problem are we solving?

Look beyond the obvious. Is there unnecessary waste, excessive energy consumption, inefficient use of materials or a product that could last longer?

2. Who experiences this problem?

Understanding customers, communities and other stakeholders is essential. A solution creates value only when it addresses a problem that genuinely matters to someone.

3. What could we do differently?

This is where creativity and innovation come in. The solution could be a new product, a digital service, a technological improvement, a circular business model or a completely new way of creating value.

4. Can this idea become a sustainable business?

A good idea requires more than environmental benefits. Entrepreneurs need to understand their customers, costs, revenue streams, partners, required resources and opportunities for growth.

In other words, a green idea becomes a business opportunity when positive environmental impact is combined with customer value and economic viability.

An Example: When Waste Becomes a Business Opportunity

An interesting example of how a simple problem can be transformed into a successful green business model is Too Good To Go.

The problem the company identified was simple but significant: restaurants, bakeries, cafés, stores and other businesses often have surplus food that may end up as waste if it is not sold in time. At the same time, consumers are looking for affordable food and are increasingly open to alternative ways of purchasing it.

Rather than trying to manufacture yet another new product, the founders of Too Good To Go identified an opportunity to connect existing resources in a different way.

Founded in Copenhagen in 2016, the company developed a digital platform that connects businesses with consumers interested in purchasing surplus food. Restaurants, bakeries, cafés and stores can offer unsold food through so-called “Surprise Bags”, while users can reserve and collect the food at a reduced price.

What makes this example particularly interesting is that one business model connects three stakeholders and three types of value. Businesses can generate additional revenue from food that might otherwise remain unsold, consumers can purchase food at a lower price, while at the same time less food is wasted.

According to the company, its platform and other solutions have helped save more than 500 million meals, with more than 120 million registered users and around 180,000 business partners across 21 markets.

This example demonstrates something important: green innovation does not always mean creating a completely new product or developing revolutionary technology. 

Sometimes, innovation means connecting existing resources with new users and creating value in a different way.In other words, a problem that someone faces every day can represent a business opportunity for someone else.

Building Sustainable Business Models

One of the most important questions for any green entrepreneur is not only “What can we create?”, but also “How will this business create and capture value?”

A sustainable business model connects the solution with the people who need it, the resources required to deliver it and the revenues that enable the venture to survive and grow over the long term.

For example, a company might develop biodegradable packaging to reduce plastic waste. However, the innovation does not end simply because the material is biodegradable. The entrepreneur needs to understand who will buy the product, why customers would switch from existing packaging, how the product will be produced, how much it will cost and whether the business can scale.

This is why green entrepreneurship is not only about creating sustainable products. It is also about rethinking entire business models.

Some businesses may change the way they sell products. Others may move from selling products to providing services, extend product lifetimes through repair and reuse, transform waste into new resources or use digital platforms to connect unused capacity with people who need it.

The opportunity is often not in creating more products, but in finding smarter ways to create additional value while using resources more efficiently and responsibly.

Technology as a Driver of Green Entrepreneurship

Technology can accelerate this process.

Artificial intelligence can help businesses optimize processes and reduce resource consumption. The Internet of Things can enable real-time monitoring of energy use, equipment and production processes. Digital platforms can support sharing, reuse and circular business models. Automation can improve efficiency, while data can help entrepreneurs better understand customer behaviour and make better decisions.

Too Good To Go is an example of how digital technology can enable a different business model. The app itself is not the essence of the innovation. Its real value comes from enabling supply and demand to be connected in a way that creates new opportunities for both businesses and consumers.

However, technology itself is not innovation.

True innovation lies in how technology is used to solve a meaningful problem.

Advanced technology without a clear customer need may never become a successful business. On the other hand, relatively simple technology applied to the right problem can create significant economic and environmental value.

From Prototype to Market

Once an idea has been shaped, it needs to be tested.

Instead of investing significant resources from the beginning in developing a perfect product, a startup can create a simple prototype or minimum viable solution, test it with potential users, collect feedback and improve it.

This process is particularly important in green entrepreneurship because sustainable alternatives often require customers to change existing habits or behaviours. A sustainable solution therefore needs to offer a clear reason to change – whether through lower costs, better performance, greater convenience, improved quality or additional environmental value.

The goal is not to prove that the original idea was perfect.

The goal is to learn what works.

Creating Value for People, Planet and Business

Ultimately, successful green entrepreneurship lies at the intersection of three dimensions: people, planet and business.

A solution must create value for customers and society as a whole. It should contribute to more responsible use of natural resources and reduce negative environmental impacts. At the same time, the venture needs a sound economic foundation that enables it to survive, grow and develop.

This balance is what distinguishes a promising green idea from a sustainable business.

Too Good To Go illustrates this idea by connecting people, profit and the planet: business partners can generate revenue from surplus food, consumers gain access to more affordable food, and food waste is reduced at the same time.

Examples like this show that business success and positive impact do not have to be mutually exclusive. On the contrary, when they are well connected, one can reinforce the other.

The entrepreneurs of the future will not necessarily be those who create the most advanced technologies. They may be those who are best at connecting technology, creativity, customer needs and sustainability to solve real-world problems.

The Next Big Idea Can Start With a Simple Question

The transition towards a more sustainable economy will require new technologies, but also new ways of thinking.

For young entrepreneurs, this represents an exciting opportunity. Discarded materials can become new products. Inefficient processes can become new services. Social or environmental challenges can become business opportunities. And a simple question – “Can we do this differently?” – can become the starting point for innovation.

The journey from a green idea to a successful business is not always easy. It requires experimentation, learning, perseverance and a willingness to rethink established ways of doing business.

But every successful business venture starts somewhere.

Sometimes, it starts with a problem. Sometimes, with an observation. And sometimes, with one simple idea: 

What if there is a better way?

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