Can Ecopreneurship and SEZ Co-exist?

Abstract

The term 'ecopreneurship' is a blend of two words, 'ecological' ('eco') and 'entrepreneurship'. It will be right to define ecopreneurship thus as 'entrepreneurship through an environmental lens'. Ecopreneurship is characterized by some fundamental aspects of entrepreneurial activities that are oriented less towards management systems or technical procedures and focused more on the personal initiative and skills of the entrepreneurial person or team to realize market. However, green entrepreneurship is not only important because it provides new opportunities for the nimble first movers who identify and exploit such opportunities but also because it has the potential to be a major force in the overall transition to a more sustainable business paradigm. In a country with 65 percent of the population depending on agriculture as a means of livelihood, industry ought to be complementary to agriculture. Through SEZs however, industry is being promoted at the cost of agriculture. Valuable resources spent to create SEZs will be at the cost of building better infrastructure for the rest of the country, something that will affect both the domestic industry as well as agriculture. One controversial policy allows the creation of special economic zones (SEZs), which are duty-free and tax-free enclaves. Lubricated by exceptionally lucrative incentives, these are meant to promote exports. India is said to be planning to set up as many as around 300 SEZs in its different states. SEZs have become controversial issue not only because of the land issue. They will also impose enormous losses on the exchequer through tax breaks and forgone duties. The Indian Finance Ministry estimates the losses at around 20 billion US dollars for just 150 zones. The global experience with SEZs hasn't been very pleasant. Only a handful of SEZs, of the hundreds that exist, have generated sizeable exports and that too at an enormous social cost. SEZs will also be exempt from environmental impact assessment and obligations to employ local people. They are certain to deplete groundwater and other resources. And they will be islands of prosperity amidst deprivation and agrarian distress. In given situation on one hand when we are talking about ecopreneurship and green environment with governments' intention to establish SEZ in various states of the Indian economy will it is feasible? Can ecopreneurship and SEZ co-exist? The present paper is an attempt in this direction.