Electronic Recycling Pick Up Business - Coursework Example

ELECTRONIC RECYCLING PICK-UP BUSINESS Electronic recycling pick-up business Introduction There have been a number of businessideas that have emerged to be of high beneficial to entrepreneurs in Singapore. One of such business ideas is electronic waste collection and management. There has been an increase in concern over the effect that electronic parts that are no longer in use or spoilt have on the environment. This has led to an increase in pressure on electronic producers to take responsibility in handling of the wastes their products. Most of the companies have adhered to this requirement. However, the problem is that there has been a difficulty in the connection of consumers and producers of electronic products. The problem comes about because of the fact that most consumers do not really know the effect of disposing such wastes to the environment. Even those who have an idea of exactly how electronic wastes can be in effect to the environment barely know exactly how the electronic wastes can get to their original producers (Johri & Energy and Resources Institute, 2008). Electronic products producers have put in place programs to collect such wastes, but most of these programs have failed because of the gap between producers and consumer. Such a gap implies that there needs to be a third player in the electronic waste recycling process. Therefore, electronic recycling pick-up could be a very good venture. This paper aims at discussing electronic recycling pick-up involvement as a business idea. The problem In the recent past, there has been an increase in the concern of the effect of human activities on the environment. The disposal of electronic wastes is one of the things that have been in the recent past of high concern to environmentalists. Electronic products have negative effects to human beings and the environment if wastes are not handled well (Appendix 1) This has led to the formation of international bodies that have the mandate of seeing to it that companies that produce electronic materials act responsibly with regard to the wastes of the products that they produce (Golush, 2008). However, the companies do not have a direct interaction with the consumers of their products. This makes it very hard for the electronic waste collection to be effectively done by the companies. However, a business minded person can view this as a business opportunity. There are firms that have specialized in collection of electronic wastes all over the world. What makes it a viable venture is the fact that there are very few firms that have specialized in collection of electronic wastes in Singapore. Industry structure and competition Before looking at the other aspects of the electronic waste collection business it will be important to look at how the business works. Companies that produce electronic products are expected to make sure that their product is environmentally friendly. One of the ways through which they are expected to do this is by making sure that their wastes are managed responsibly. In most cases the phrase, “responsible management of electronic wastes” usually imply that the companies producing them have to take the wastes back (Hester & Harrison, 2009). When they take the back they are expected to sort the parts into those that can be reused or recycled and those that need to be disposed. Some of the parts that need to be disposed need to be handled with care because of the fact that they have any harmful effect to the environment and its inhabitants. However, if the electronic product producers decide to deal with the collection of the wastes by themselves it sometimes turns out to be a costly activity. However, due to the fact that an electronic waste collectors deal with all electronic wastes regardless of their producers, they have a chance of making very high profits. Apart from the electronic product producers there are also other firms that have specialized in recycling of parts of electronic gadgets. This implies that such a firm will not have to depend entirely on the producers of the electronic gadgets for them to make profit from their activities. What happens after the collection is that you are supposed to get the waste products to the people who are in need of them at a cost. It has been discovered that most electronic product manufacturers buy back their waste materials in terms of kilograms (Vaughn, 2009). The money that they pay for the waste will be able to cater for the operational cost and bring forth profits that are likely to grow bigger as the popularity and connection of the fir increases. Industry entry barriers are things that can either make it easier or harder for an entrepreneur to penetrate a certain market. Industries with high entry barriers usually tend to be less attractive to entrepreneurs. Another thing about such industries is that they usually require allot of startup capital (Cuervo, Ribeiro & Roig, 2007). However, the good thing about the electronic waste collection and recycling industry in Singapore is that it does not have much entry barriers. This means that it would not be hard for an entrepreneur to invest in such an industry. An entrepreneur who is looking for a chance for an industry that does not have much entry barriers should surely consider investing on electronic waste collection (Sodhi & Reimer, 2001). There are no specific business organizations that can be said to be highly dominant in this industry. When choosing a business venture, it is always good to look at the nature of competition in the industry that you wish to invest in. Some industries are highly competitive with the well-established player bullying the small and new entrants (Minniti, Zacharakis & Rice, 2007). However, due to fragment that is not the case for the electronic waste collection and recycling industry in Singapore. The electronic waste management industry in Singapore is highly fragmented, making it hard for one player to dominate. This makes it easier for new players in the industry to survive. With regard to such information it will be right to say that it would be a good idea for an entrepreneur to consider getting into this business. Financial feasibility of the business In entrepreneurship, the most important thing is whether the venture is profitable or not. To see exactly if the venture will be profitable or not it will be important to look at the rate at which people consume electronic products in Singapore. Statistics have it that there has been an increase in the volume of electronic products that are consumed by people in Singapore and all over the world (Darby & Obara, 2005). With an increase in the volume of electronic products that are bought it is obvious that there will be a resulting increase in electronic wastes that are disposed to the environment. With an increase in the volume of electronic wastes it will be easier and more profitable for a firm to specialize in the collection of electronic wastes (Kuehr & Williams, 2003). This will be very true, especially because for the best result they would have to do a door-to-door collection of the electronic wastes. Singapore’s infrastructure is highly rated globally. Looking at the nature of electronic waste collection business it is clearly evident that this is going to be an advantage to a person who wishes to start an electronic waste collection business. Absence of good infrastructure implies that such business will have to go through many unnecessary hardships (Verstraete & Jouison-Laffitte, 2011). With poor infrastructure an electronic waste collection firm will also have to do with a bigger operational budget. About 99% of Singapore roads are paved. This implies that an electronic waste collection firm will have an easy time as they move around collecting the electronic wastes from the people living in Singapore. The country also has well developed communication networks which make it easier for there to be adequate communication between the firm and the people that they are supposed to collect the wastes from. Working is such an environment is likely to make such a business very profitable in Singapore. The Singapore public has been gradually adopting a positive attitude towards the fight against environmental pollutions. Studies have proved that a majority of the people living in Singapore has concerns over the rate at which non-green activities are affecting their environment. This is an opportunity that can be easily seized at this period when everyone is very much concerned about making the environment pollution free (Krozer, 2008). People want to live in safer environments and are willing to be part of the course that will see to it that the effect of environmental pollutants are reduced. For an entrepreneur who wishes to get the best from the electronic waste collection industry this will be the pillar upon which the success of the venture is going to depend on. One thing that is certain is that the public is going to be cooperative because of the need to keep their environment free from any type of pollution. The government has also been very supportive of the electronic waste recycling industry. One of the ways through which they have shown their support is by giving incentives and moderating taxes that are associated to electronic waste collection and recycling. If a business organization is able to operate under minimal taxation, it will be able to do with less operational cost (Forbat, 2007). When this happens the firm will be sure that they will be able to operate without having to fear having to deal with high taxations. Another notable thing about taxation rates in this industry is the fact that they have been highly stable. Operating in an industry where taxation does not fluctuate will mean that a business organization will be able to operate without having any fears of tax rates being fluctuated at any time. This kind of stability brings stability to a business organization that happens to be operating in this industry. Stability will enable proper and effective future planning and strategizing. One important consideration that all entrepreneurs should make is the amount of capital that is needed to start a particular business. Someone might be having a brilliant idea, but lacks the required capital to bring the idea to activity (Baron, 2012). This should not be much of a worry for someone who wishes to invest in electronic waste collection. The biggest worry in this industry is getting the knowledge of exactly who have the electronic wastes and those who need the electronic wastes. With such knowledge a person will only have to worry about the legalities involved, putting up an office, and finding the most appropriate way of getting the electronic wastes from the people who have them to the people who need them or the people who should be having them. This makes the industry a very open one. An entrepreneur can decide to invest in small scale, middle scale, or large scale collection of electronic wastes (Macauley, Palmer & Shih, 2003). For those with the relevant resources there would be nothing wrong with investing in both collection and recycling of electronic waste. When intending to invest in a certain industry, it is always important to know how the industry has been performing in the previous years. The main reason as to why an entrepreneur has to know the performance of an industry in the recent past is because such knowledge can be used in predicting future performance of the industry (Baty & Blake, 2003). The electronic waste collection and recycling industry in Singapore has gone through significant growth over the past few years (Appendix 2). In the last decade the electronic waste collection and recycling industry in Singapore has grown from being just average to being among the best in Asia. In comparison to other Asian countries such as Japan and China, Singapore have less electronic waste problems. More electronics producers are being attracted to the prospect of having to work with a system that is already functional for their take-back programs. This is a clear indication that the industry is likely to improve in the future. Conclusion It is clearly evident that the electronic waste collection will be a very profitable venture. All the reasons given herein show that its profitability, availability of markets, and lack of entry restriction all work for the advantage of an entrepreneur wishing to venture into this industry. Most entrepreneurs will be attracted to this because of its high profitability and relatively low risks. The industry is also not crowded. References Baron, R. A. (2012). Entrepreneurship: An evidence-based guide. Cheltenham: Edward Elgar. Baty, G. B., & Blake, M. (2003). Entrepreneurship: Back to basics. Washington, D.C: Beard Books. Cuervo, G. A., Ribeiro, D., & Roig, S. (2007). Entrepreneurship: Concepts, theory and perspective. Berlin: Springer. Darby, L., & Obara, L. (2005). Household recycling behaviour and attitudes towards the disposal of small electrical and electronic equipment. Resources, Conservation and Recycling, 44(1), 17-35. Forbat, J. (2007). Entrepreneurship: The seeds of success. Petersfield: Harriman House. Golush, T. V. (2008). Waste management research trends. New York: Nova Science Publishers. Hester, R. E., & Harrison, R. M. (2009). Electronic waste management. Cambridge, UK: RSC Pub. Johri, R., & Energy and Resources Institute. (2008). E-waste: Implications, regulations, and management in India and current global best practices. New Delhi: Energy and Resources Institute. Krozer, Y. (2008). Innovations and the environment. London: Springer. Kuehr, R., & Williams, E.(2003). Computers and the environment: Understanding and managing their impacts. Dordrecht [u.a.: Kluwer Acad. Publ. Macauley, M., Palmer, K., & Shih, J. S. (2003). Dealing with electronic waste: modeling the costs and environmental benefits of computer monitor disposal. Journal of Environmental Management, 68(1), 13-22. Minniti, M., Zacharakis, A., & Rice, M. P. (2007). Entrepreneurship: The engine of growth. Westport, Conn: Praeger. Sodhi, M. S., & Reimer, B. (2001). Models for recycling electronics end-of-life products. OR-Spektrum, 23(1), 97-115. Vaughn, J. (2009). Waste management: A reference handbook. Santa Barbara, Calif: ABC-CLIO. Verstraete, T., & Jouison-Laffitte, E. (2011). A business model for entrepreneurship. Cheltenham, UK: Edward Elgar. Appendix 1: Harmful components of E-wastes Appendix 2: growth of E-waste management industry in Singapore Read More