Entrepreneurs Going Green in MIT Course

When Wal-Mart chief Lee Scott talks about reducing his footprint, he's not talking about shoes. He's looking for ways to reduce the retail giant's impact on the environment by using less energy or generating less waste.

These efforts are drivers of a new frontier for entrepreneurs.

And -- in a sign that a movement once associated with granola crunching has crossed into pinstripes and briefcases -- the Massachusetts Institute of Technology has crafted a special program to prepare entrepreneurs for this emerging market.

"There is a moral dimension to all of this -- doing good is the right thing -- but what we're seeking is 'can we identify those areas where the interests of sustainability are aligned with the interests of business,' " said professor John Sterman, director of MIT's System Dynamics Group and one of the S-Lab teachers.

S-Lab, in its second semester, is a series of classes designed to give graduate students the tools they need to be pioneers in the field whether they're working for a large company or starting their own.

"You don't have to leave your values at the door," said Professor Richard Locke, another S-Lab teacher. "You can care about issues of the environment and still be a successful entrepreneur."

The creators of the program were motivated by their own interest in the issues of sustainability. They also saw a growing demand in the marketplace. Companies are increasingly talking about going green as consumers push for new practices.

There is also a tremendous amount of room for small businesses that can offer green products or services.

The program starts with some frightening lessons in how fast we will use up our resources based on our current trajectory. The next step is to give the students hope that something can be done about it.

Part of it is changing thinking to focus on long-term gain as much as short-term profits. In one simulation exercise based on the fishing industries, students are put on teams and told the winner will be the one that makes the most money. Even the most pro-green students find themselves wiping out imaginary fish populations.

"Welcome to Gloucester," said Locke said.

The game opens up a discussion about how to balance market incentives with sustainability principles.

Students also talk about real situations, such as Wal-Mart's green efforts, in a class that fosters heated debates. It's a big company so any change it makes has a big impact. At the same time, it has been accused of adding to the problem by setting prices so low that people buy more stuff that ends up in landfills.

Students also dive into the real world by working on sustainability projects with companies of all sizes.

"There's no substitute for real world experience," Locke said.

The interest in the class has exceeded expectations. Its creators weren't sure how it would be received, but dozens of students have signed up.

Perhaps just as importantly, companies from around the world are lining up to work on projects with the students.