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0«GLOBALLASHUV VA IQLIM O'ZGARISHI SHAROITIDA OZIQ-OVQAT XAVFSIZLIGINI TA'MINLASH: MUAMMO VA YECHIMLAR» RESPUBLIKA ILMIY-AMALIY ANJUMANI 2024 YIL 15 - MAY
THE SIGNIFICANCE OF DEVELOPMENT OF ECO-BUSINESS
IN AGRICULTURE
1Hulkar Turobova, 2Sardor Amonov
1PhD, associate professor of Bukhara state university 2Teacher of Bukhara state university https://doi.org/10.5281/zenodo.11446577
Abstract. The article describes the necessity of waste-free production in the development of entrepreneurship in agriculture and improvement of agro-food supply. Agricultural entrepreneurship can be developed through effective use of agricultural waste. Various business models of the circular economy are used in this.
Keywords: Eco-business, circular economy, gricultural waste, Agricultural entrepreneurship.
Introduction
Agriculture, as the backbone of many economies, plays a pivotal role in ensuring food security, economic stability, and environmental sustainability worldwide. However, traditional agricultural practices often come at a cost to the environment, contributing to soil degradation, water pollution, biodiversity loss, and greenhouse gas emissions. In the face of escalating environmental challenges, the imperative to transition towards sustainable agricultural practices has become increasingly apparent.
This paper examines the significance of developing ecological business models within the agricultural sector, aligning with global initiatives such as the program of transition to a "green" economy and ensuring "green" growth in the Republic of Uzbekistan by 2030. The program of transition to a "green" economy and ensuring green growth in the Republic of Uzbekistan by 2030 includes the formation of environmentally friendly infrastructure and the introduction of circular economy practices in industrial enterprises, thereby stimulating modernization processes; Enhancing food security and prosperity through sustainable agricultural production and processing—creating a global governance system aimed at ensuring food security, developing healthy ecosystems, and supporting the sustainable management of land, water, and other natural resources; support of youth innovative start-up projects — improvement of innovation and startup support mechanisms to diversify the economy and stimulate youth employment; Tasks such as encouraging the creation of "green" jobs by investing in "green" technologies and infrastructure have been defined[1].
Additionally, this paper underscores the importance of effective use of agricultural waste in ecological business models. By leveraging agricultural waste as a valuable resource through practices such as composting, bioenergy production, and nutrient recycling, farmers can reduce environmental pollution, improve soil health, and enhance resource efficiency.
Agricultural entrepreneurship can be developed through effective use of agricultural waste. Agricultural waste can be used to produce bio-based materials such as bio-plastics, bio-composites and bio-based chemicals. These materials contribute to reducing the impact of waste on the environment and saving resources, ensuring a short-term circulation of natural polymers.
By turning agricultural waste into valuable products, a circular economy model is established, where waste output is minimized, resources are conserved and economic value is
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created throughout the agricultural supply chain. This approach ensures sustainability by closing the loop on resource use and waste management.
Advances in the technology of extracting microcellulose from agricultural waste allow efficient conversion of agricultural waste into high-value products. Continuous research and development in this area will help to optimize the processes of technological innovation, resource utilization and economic efficiency.
Overall, the circular use of agricultural waste represents a multifaceted approach to sustainable development, combining technological innovation with environmental protection and economic prosperity in agricultural systems.
Literature review
Ecological entrepreneurship is a risk-based proactive activity aimed at the use of ecologically sound and clean technologies, with a sense of social responsibility towards the environment in order to satisfy these needs.
As a result of studying the results of scientific research of foreign scientists, the evolutionary development of environmental entrepreneurship can be divided into the following stages:
The first stage. Environmental awareness (until the 20th century). Environmental protection began long before green business practices were formalized. Concerns about deforestation, soil erosion, and other environmental problems have been around for centuries. However, this period often focused on conservation rather than integrating sustainable practices into business operations.
The second stage. Environmental movement and regulation (mid-20th century): The mid-20th century saw the emergence of the environmental movement, fueled by events such as the 1962 publication of Rachel Carson's Silent Spring, which raised awareness of the effects of pesticides. . The 1970s saw the establishment of environmental regulations and agencies in various countries, such as the US Environmental Protection Agency (EPA). This period created the basis for regulatory review of the environmental impact of enterprises.
The third stage. The Rise of Corporate Environmentalism (1980s-1990s): During the 1980s and 1990s, there was a growing recognition among some businesses that environmental responsibility could be incorporated into corporate strategies. Companies began to adopt environmental management systems and the concept of "greenwashing" emerged, which refers to the practice of promoting environmental initiatives without meaningful action. During this period, the formation of ecological certificates and labels appeared.
The fourth stage. Rio Earth Summit (1992) (Earth Summit, Rio de Janeiro): The 1992 United Nations Conference on Environment and Development was an important event. It brought together governments, businesses and NGOs to discuss environmental and sustainable development issues. The summit led to the adoption of the agenda 21 framework and increased awareness of the role of business in sustainability [6].
The fifth stage. The Era of Corporate Social Responsibility (CSR) (2000s): The 2000s witnessed significant changes as businesses embraced environmental, social and economic responsibilities. The concept of corporate social responsibility (CSR) has become increasingly accepted. Companies began to publish sustainability reports, and initiatives such as the Global Reporting Initiative (GRI) were established to standardize reporting on sustainability indicators.
The sixth stage. Green Technology and Innovation (2010s): Advances in green technology, renewable energy, and sustainable practices increased in the 2010s. Enterprises have begun to
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incorporate innovative solutions such as energy-efficient technologies and circular economy principles into their operations. The concept of the circular economy, which emphasizes waste minimization and resource efficiency, has gained popularity.
The seventh stage. Mainstreaming (Current): Green business practices are becoming increasingly popular as environmental issues, climate change, and resource scarcity gain global attention. Many companies see sustainability as a key factor for long-term success and are adopting comprehensive sustainability strategies. Investors, consumers and regulators are increasingly looking to businesses to demonstrate their commitment to environmental protection.
The evolution of green business reflects a growing understanding of the interrelationship between business activities, environmental well-being, and societal impact. As the world faces complex challenges such as climate change, businesses continue to adapt and innovate to address environmental challenges while contributing to sustainable development.
Research methodology. In the process of preparation of the article, foreign and local literature was effectively used. Business models of foreign countries on ecological entrepreneurship were studied and statistical indicators were analyzed.
Analyzes and results.
In Uzbekistan, great attention is also paid to the cultivation of ecological products. In 2023, the growth rate of products (services) of agriculture, forestry and fisheries was 104.1% (103.6% in 2022 compared to 2021) compared to the corresponding period of the previous year (Figure 3).
2019 - y. 2020 - y. 2021- y. 2022- y. 2023- y.
Source: stat.uz
Figure 1. Dynamics of the growth rate of the total volume of agricultural, forestry and fishing products (services) in Uzbekistan.
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110,9
2019-y. 2020-y. 2021-y. 2022-y. 2023-y.
Source: stat.uz
Figure 2. Growth of beverage production in Uzbekistan.
This indicator presents the production of non-alcoholic beverages and mineral waters, production of alcoholic beverages, mainly by the fermentation method including the production of beer and wine, as well as distilled alcohol. According to the results of January-December 2023, the share of production of beverage products in the manufacturing industry was 3.2%, compared to the corresponding period of the previous year, the physical volume index was 106.3%, and the volume of production amounted to 17,968.3 billion soums.
119,5
2019-y. 2020-y. 2021-y. 2022-y. 2023-y.
Source: stat.uz
Figure 3. Production of textile products
Production of textile products includes manufacturing of textile fiber, as well as production of textile yarns and ready-made textile products, decoration of textile products and clothes, production of ready-made textile products other than clothes. From January to december of 2023, the share of textile production in the manufacturing industry was 12.9%, compared to the corresponding period of the previous year, the physical volume index increased by 6.4%, the production volume was 71,121.1 billion soums.
By 2030, it is predicted that the world will require 50% more food, 45% more energy, and 30% more water. Agricultural systems are the foundation of human civilization, providing food for the population and fiber and fuel for industry.
Today, more than 37 million people live in Uzbekistan, and this figure is increasing day by day. In the country, an average of 91 kg of food is wasted per capita annually. This means that about 3.2 million tons of food waste is generated in the country in one year.
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When analyzing the food waste, it was found that 32% of it occurs in the process of cultivation, 33% in the process of storage and processing, 13% in the process of transportation, and 22% in the process of consumption.
If the waste produced in Uzbekistan for one year is converted into biofuel 1.11 billion liters of bioethanol or 1.02 billion liters of biodiesel can be produced.
Development of ecological entrepreneurship in agriculture includes the prevention of pollution, resource and nature-saving technologies, use of biotechnologies that implement measures to improve the environment, recycling, green energy, "healthy" food, clean water, construction materials, ecoparks, waste disposal, tourism, infrastructure, crop and animal breeding, and construction.
Figure 4. Aspects of ecological entrepreneurship.
Green business initiatives include renewable energy companies, sustainable agricultural practices, environmentally friendly products, and businesses focused on waste reduction and recycling.
Organization of environmental entrepreneurship is important to improve efficiency and waste management efficiency in the agricultural supply chain process.
Agricultural waste can be converted into bioproducts such as fertilizers, energy, materials and compounds. Limiting agri-food waste and transforming it into new materials or products that teach the principles of reuse, repair and recycling can help local economies by creating a profit stream and reducing environmental damage in the long term. However, despite the positive effects of the circular economy concept, their application in the supply chain increases operating costs, but this cost can be justified if there is pressure from government regulations to improve environmental protection efficiency.
The importance of circular use of waste in agriculture is shown in the following:
- Circular economy places great emphasis on reducing waste production and promoting recycling in the agricultural system. Moreover it promotes reducing accumulation, prevents pollution, and conserves important nutrients by recycling organic waste such as plant residues,
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animal manure, and food scraps as organic fertilizers or through procedures such as anaerobic digestion.
- Eco-business in agriculture focuses on closed food chains where nutrients are reused and recycled within the system.
- By promoting diverse and resilient ecosystems, rotational agricultural practices help maintain biodiversity
- By reducing greenhouse gas emissions and enhancing carbon sequestration, circular agriculture helps combat climate change.
Creating a green image and implementing environmentally friendly solutions has become an important element of the organization's strategy worldwide in recent years. Conscious investment in environmental initiatives allows for environmental care, which is consistent with the organization's concept of social responsibility and its duty, but usually turns out to be economically efficient from a business point of view and helps to form a positive image of the organization.
The concept of green investment refers to allocating capital to green economic sectors such as clean energy, water management and recycling. Additional capital attracted from investors allows such organizations to spread their technologies and solutions more widely and thus develop faster. Developing and marketing innovative green solutions is also a way to stand out from the competition. By offering a unique solution, the organization increases its competitiveness, resulting in higher profits. Such projects can be financed by the European Union under the Entrepreneurship and Innovation Program (EIP).
Discussion and Conclusion
Businesses can strike a balance between stability and profit with sustainable profitability.
How can businesses achieve sustainability?
To achieve sustainability, businesses must change their operations. Ways to achieve sustainability are as follows[5]:
1. Production of goods and services with environmentally friendly raw materials (for example, avoiding the use of environmentally harmful chemicals).
2. Goods must be made from renewable materials or they must be recycled.
3. Transportation of goods should not pollute the environment (for example, transportation by electric vehicles).
4. Use of renewable energy sources for production (for example, solar, wind, etc.).
5. Reducing the use of packaging.
6. Reduction of waste generated as a result of business activities.
7. Compliance with environmental policy.
Environmental entrepreneurship involves the creation and implementation of business models that address environmental issues, promote sustainability, and contribute to positive environmental outcomes. Several business models have emerged in the field of eco-entrepreneurship, and these models often combine social, environmental and economic considerations.
The main advantages and disadvantages of ecological entrepreneurship
Eco-business offers many benefits to the entrepreneur as well as to the wider society and environment.
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Table 1.
The main advantages of ecological entrepreneurship
Features Advantages
Positive impact on the environment One of the main advantages is the ability to contribute to environmental protection and sustainability. Environmental entrepreneurs focus on creating products and services that reduce negative impacts on ecosystems, reduce pollution, and help conserve resources.
Availability of Innovation and Technological Advances Environmental entrepreneurs often innovate in green technologies and sustainable practices. This can lead to the development of new, environmentally friendly solutions and technologies that benefit not only business, but society as a whole.
Market Opportunities As awareness of environmental issues increases, demand for sustainable products and services will also be increased. Environmental entrepreneurs can gain a competitive advantage by tapping into a growing market and serving consumers who prioritize environmentally friendly options.
Moving to Green Markets and Certifications Many industries and markets offer green certifications and labels for environmentally friendly products. Under these standards, eco-entrepreneurs can enter niche markets and demonstrate a commitment to sustainability.
Greater Corporate Social Responsibility Adopting environmentally sustainable practices can enhance a company's reputation and contribute to its CSR initiatives. Many consumers and investors are increasingly considering a company's social and environmental responsibility when making decisions.
Long-term cost savings Although the initial costs associated with implementing green technologies and practices are high, in the long term, businesses can often achieve cost savings through energy efficiency, waste reduction, and resource optimization.
Government Support Governments often encourage and support businesses that use environmentally friendly practices. These incentives may include tax credits, grants or subsidies that are financially beneficial for entrepreneurs to implement green initiatives.
Attracting talented Employees Attracting talent Employees, especially younger generations, are increasingly looking for employers that prioritize sustainability. Environmental entrepreneurship can attract top talent by providing a workplace that aligns with values related to environmental protection and social responsibility.
Resiliency to Regulatory Changes Given the global focus on environmental issues, businesses that actively adopt sustainable practices may be better able to adapt to future regulatory changes. This can provide a competitive advantage over businesses that are less compliant with emerging environmental regulations.
Long-term Viability Businesses that prioritize sustainability will be more viable in the long-term as environmental issues become more prominent. Adapting to changing consumer preferences and regulatory environments can contribute to the overall viability and longevity of a business venture.
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While green entrepreneurship has many benefits, it is important to recognize the potential drawbacks and challenges associated with adopting environmentally sustainable business practices. The disadvantages are listed in Table 2.
Table 2
Disadvantages of ecological entrepreneurship
Features Disadvantages
High initial costs Implementing environmentally friendly technologies and practices can result in high initial costs. Entrepreneurs may have difficulty securing the initial investment required for sustainable infrastructure, renewable energy sources, or environmentally friendly materials.
Challenges in market positioning Demand for sustainable products and services may still be relatively low in certain markets. Entrepreneurs may have difficulty convincing consumers to prefer environmentally friendly options, especially if these products are perceived as more expensive or less convenient.
Resource Constraints Eco-entrepreneurs may face challenges in securing resources such as raw materials, especially if they rely on sustainable or responsible sourcing. This limitation may affect the expansion of their businesses.
Technological Risks Some environmentally friendly technologies may be relatively new or untested on a large scale. Businesses may face risks related to the reliability and performance of these technologies, which may lead to operational problems.
Regulatory Uncertainty Environmental regulations may change over time, and entrepreneurs may face uncertainty about future policies. Changes in regulatory and legal documents can affect the viability and competitiveness of environmental business.
Consumer Perceptions Despite growing interest in sustainability, some consumers may be skeptical of "greenwashing" that exaggerates or makes false claims about their environmental efforts. This can lead to distrust and suspicion among consumers.
Competitive Challenges Environmental entrepreneurship may face competition from traditional businesses that do not prioritize sustainability. If consumers prioritize price over environmental considerations, only sustainability-focused businesses can compete.
Limited scope of impact Although individual environmental enterprises contribute to sustainability, the impact may be limited compared to broader systemic change. Entrepreneurs may find it difficult to affect large-scale environmental improvements without collaboration and systemic change.
Supply Chain Complexity Sourcing sustainable materials and ensuring a transparent and ethical supply chain can be complex. Entrepreneurs may face difficulties in identifying and cooperating with suppliers who meet environmental and ethical standards.
Low awareness Some consumers and businesses may not be aware of or understand the environmental impact of certain products or practices. Educating the market about the importance of sustainability can be a time-consuming and ongoing effort.
Despite these challenges, many entrepreneurs see environmental business as an opportunity to make a positive difference, stand out in the market, and contribute to environmental sustainability. Addressing these gaps often involves strategic planning, innovation, and a commitment to long-term sustainability goals.
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In summary, eco-entrepreneurship offers a range of benefits, from contributing to positive environmental outcomes to capitalizing on growing market trends and gaining a competitive advantage in a changing business landscape.
Environmental entrepreneurship involves creating and implementing business models that solve environmental problems, promote sustainability, and contribute to positive environmental outcomes. Several business models have emerged in the field of eco-entrepreneurship, and these models often combine social, environmental and economic considerations.
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