Associated Press: BUSINESS: New Sustainable Startup Struggles to budget while maintaining core values

 

BUSINESS: New Sustainable Startup Struggles to budget while maintaining core values


By: Mahima Shyno 


         


BERKELEY (AP) —  Almost eight million tons of pandemic-associated waste have been generated over the past two years and sustainable businesses are essential to reducing our impact on the environment. Grassphalt, a new and upcoming sustainable start up, is requesting over half a million dollar investment  from the Berkeley Venture Capital (BVC)  in order to fund the implementation of their prototype business in Hungary that would actively work to curb the rise in single use plastic. 


The company aims to “Turn Trash into Treasure '' by taking plastic and turning it into eco-friendly asphalt that would then be used to build infrastructure in developing countries. The company plans to use the funding to create recycling centers across Hungary, collect plastic, and then turn that plastic into  asphalt through an intense shredding and heating process. 


At the moment, Grassphalt’s founding members are working to create a sustainable business model that is cheap and effective before their final pitch to the BVC. However, while creating their models and calculating their finances they are encountering a common problem that sustainable businesses run into: How does one balance cost efficiency without compromising a company's founding values? 


The company has calculated and recalculated their finances only to find that somewhere along the line a compromise must be made. While creating their business model, person 10 stated “[w]e have to find cheap plastic alternatives to gloves and sanitary uniforms for the waste pickers because sustainability is the sole reason for our company. It's just not something we can afford to compromise on” 


This sentiment, however, was not carried for the humanitarian aspect of Grassphalt’s company. One of the company's reasons for piloting their program in Hungary was to provide better jobs to the Roma people.  But contrary to this founding principle, Key leaders, such as person 17, commented on paying the workers at the recycling centers at or slightly above minimum wage. 


Additionally, the company is running into issues on the feasibility of operating the recycling centers. Balancing financial constraints with quality products and work. Person 12 explained that , “We need to establish a 6-week training program for the waste pickers to train them on separating trash and operating machines.” Other delegates countered them questioning the time frame, and the financial issues that come with the establishment of such a program. According to other delegates, intense training programs would be too expensive. 


Grassphalt isn’t alone in their journey to receive a major financial investment from the BVC or in the struggle to balance sustainability, quality, and finance. While they work to iron out the details it is important to recognize how sustainable businesses are at this time as the COVID-19 pandemic is not over and our utilization of single-use plastic continues to increase.


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