Clayoquot Green Economic Opportunities Project

Overall Assessment Small business and entrepreneurship will continue to be cornerstones of the rural economy of the West Coast. Finding deliberate ways to support, link and encourage collaboration between small businesses in the Region, like through a 'green promotions' strategy, would help to strengthen their overall success. Initiatives that focus on improving the state of the environment and that encourage a conscious relationship between people and the environment are a natural 'fit' with the objectives of the UNESCO biosphere designation.

Overview: Current status and trends in the industry For the purpose of this project, the Green Products and Services category has been used as somewhat of a 'catch-all' category. The category captures the wide variety of small businesses, industries and services that use or sell environmentally sustainable products and/or operate with deliberate intent around issues of social responsibility, equity and environmental improvement. Recognizing that these businesses and services can be described or itemized in a variety of ways, the authors of this report, for simplicity, have chosen to cluster them into the following 'categories': Businesses selling environmental products Holistic health, fitness and body work Natural foods, markets and restaurants Natural remedies and products Bookstores, counseling, education and spiritual enterprises Social/cultural non-governmental Resource and environmental conservation, management and restoration In Clayoquot Sound there is already a plethora of businesses and activities that rightfully fall into these clusters or categories. As one resident stated, "The region has, by accident and by history, created and drawn to the area people who are interested in a healthy lifestyle, who have a higher than average concern about the environment and who want to live in harmony with the natural world".

Photo: Central West Coast Forest Society

The war in the woods, establishment of the UNESCO biosphere reserve and growth in the region's eco-tourism industry all attest to the fact that there is, indeed, a special quality on the West Coast that brings people and their environment into better balance. For the most part, the people who are drawn to live in the region are drawn by these qualities and those who have been here for generations already have an intrinsic link to the land. One person interviewed for the report called it a 'mystic quality'. It is in this kind of atmosphere that a deliberate strategy to promote green business can and should thrive.

Research for this report identified a number of existing businesses currently focusing on the sale of green products (including natural-fiber clothing and organic produce); a number offering holistic health and fitness services (including spas, health food and retreat businesses); and a range of non-profit and for profit initiatives focussed on environmental issues including restoration and resource management.

The construction of an eco-industrial park in Ucluelet designed specifically to attract environmentally friendly industry and the construction of the first Gold Standard LEED restaurant complex in North America (Cedar Corner) will serve to further raise awareness and interest in the region's commitment to an alternative and greener economy. Research has identified a number of areas where the 'green theme' for want of a better word could be further emphasized. This would have the impact, as with arts and culture sector, of deepening an overall culture and identity for the Clayoquot Sound Region. These include:

Green building development: The region has a stated interest in supporting alternative building technologies. The Tofino Council is currently reviewing an addition to its' building by-law that strengthens the language around options for alternative power and water storage and use. The first LEED[1] standard building in the Region is being developed this summer at the corner of 4th and Main in Tofino. Cedar Corner, once completed will house the first gold-level LEED restaurant in North America along with an organic food store and a compatible business service. Two staff apartments have been included in the design to help address the affordable housing shortfall in the District.

This project has not only raised interest in the concept of green building construction, it has and will no doubt continue to generate interesting spin-offs. At the present time, those involved in the Cedar Corners project for instance, are exploring the feasibility of adding a new business to the 'mix' in the region with a salvage wood program that would provide consumers with the option to incorporate reclaimed wood into their construction projects.

A second green building project in the region generating significant interest is the new $5 million dollar expansion at the Pacific Sands Resort on Cox Bay. The resort owners, with assistance from BC Hydro plan to introduce an energy efficient Geoexchange heat pump system. This earth source system will heat, cool and provide domestic hot water to the 22 new units. It is the first resort in Tofino to incorporate this technology.[2]

The consideration of a by-law to encourage green building and conversion can also be taken a step further with the addition of deliberate incentives or reward programs for homeowners and businesses that demonstrate a commitment to green technologies and approaches. This concept is currently being developed for review in the District of Tofino.

Organic produce and bio-regional products: At the present time, there is only one organic food producer in the region, located behind the Info Centre on the Pacific Rim Highway. This greenhouse business provides salad greens and vegetables in season to local restaurants and bulk produce to Salal's Coop. A seasonal visitor adds a 'twist' to the organics business by bringing a truck load of Okanagan produce each summer to sell in the region. The continued success of this endeavor is a small indication of the growth potential in this marketplace. Tofino Coop has added a small organics section to their inventory but at the present time, with the sale of Salal's Coop this spring, there is no food store or specialty store focused on organic or bio-regional food products. Business recruitment is underway to see if this type of business can be incorporated into the Cedar Corners development.

Habitat restoration: Three years ago, habitat restoration promised to become a significant industry in British Columbia. An estimated 1200 people coast-wide were working on initiatives to build and improve park trails, restore damaged salmon streams, decommission logging roads and bridges, construct habitat viewing platforms and perform silvaculture tasks. Much of this work was being paid for through HRDC, Forest/Fisheries Renewal BC and Western Economic Diversification - via project partnerships designed to create new employment opportunities and develop new skills in communities experiencing significant economic transition (due to forestry and fishing cutbacks).

In 2001 the provincial government announced their intention to close the two crown corporations, Forest and Fisheries Renewal BC, that were their vehicles for this work. In 2003, HRDC announced its final year of funding for community projects to support human resource transition in the fishery and DFO announced the closure of its community stewardship program.

Without these funding sources opportunities for habitat restoration businesses and employment will be significantly reduced. Some silvaculture employment and contracting will continue in the Region, paid for by Interfor and Weyerhauser. Some private fisheries biology contracts will also be retained through agencies such as Department of Highways for remediation consultation. One interview respondent suggested, however, that this contract work is insufficient for a consulting biologist to operate out in the region on a full-time basis. It was also suggested that with cooperation between communities two crews of up to ten people could be sustained in in-stream and riparian work along with building and maintenance of trails and recreational infrastructure throughout the region. A few jobs will be retained through the National and Provincial parks system, again focused on park infrastructure and maintenance.

Unfortunately, despite the need for these activities, without government programs and funding support there will not likely be significant new opportunities or growth in this sector in the coming years. Private dollars for habitat restoration are very restricted and the competition for funding in the non-profit environmental sector is steadily increasing.

Resource and environmental management: The funding challenges that face habitat restoration are also relevant in resource and environmental management. Nevertheless, public concern, assertion of Aboriginal rights and title and a desire for increased local control over resource and environmental management have been responsible for the creation of a number of new organizations in the region, and new jobs within them. These include Iisaak, The WCVI Regional Aquatic Management Board, Clayoquot Biosphere Trust, Central Region Board and others. A strategy for building the human resource requirements to fill positions within these organizations is needed to ensure local, particularly First Nations, residents are able to fill these positions.

Small businesses focussed on green products: At the present time, there are only a couple of local businesses that have a 'green' emphasis in the products they retail. There is probably some further opportunity for 'niche' retail and wholesale industry in the Biosphere Region - especially if there is a commitment to emphasis and build an overall regional culture based on the 'green theme'. Small businesses face some special challenges in this region however, that cannot be ignored. The factors for success are not clearly in their favor. Higher-than-average commercial rents, limited commercial space options (storefront, storage, industrial), parking restrictions, a lack of staff housing, significant seasonal population fluctuations all combine to make a business start-up and success quite complex.

One retailer summed the situation up nicely. 'Focussing on green products might prove to be good for business if everybody in town is doing it so we could get some synergy and marketing happening, but if it was just me doing it, I would sink my business in a week. Green products are too expensive for the people who live here and the tourists won't pay my rent in the winter'.

The chart below suggest some of the areas that could be further developed if the region was to commit to a 'go green' strategy for retailing.

• Air Purifiers & Filtering Systems
• Alternative Energy Product Sales and Production
• Architects & Building Designers
• Artists & Galleries
• Automobile Repair & Service
• Baby Accessories & Diaper Services
• Beauty Salons
• Beds, Bedding, Futons & Mattresses
• Bicycles: New, Used, Repair and Service
• Boating Products
• Bottled Water
• Building Contractors, New & Remodeling
• Building Materials, Supplies & Products
• Carpet & Upholstery Cleaning
• Cleaning Products & Supplies
• Clothing and Shoes
• Convention Organizing
• Crafts and Cultural Arts
• Desktop Publishing and Graphics Design
• Energy Saving Devices
• Entertainment)
• Environmental Design & Consulting
• Value added wood Furniture & Accessories
• Gardening Supplies
• Greeting Cards
• Heating and HVAC Contractors
• Hemp Products (existing)
• House Cleaning and Janitorial Services
• Interior Design & Decoration
• Landscaping
• Lighting
• Music: Tapes, CD's & Records
• Organic Products
• Outdoor Recreation & Equipment
• Paints, Stains, & Other Finishes
• Paper, Stationery & Office Supplies
• Pest Control
• Pet Stores & Supplies
• Photography and Services
• Printing and Photocopying
• Recycling & Waste Reduction Services
• Telephone & Telecomm Products & Services
• Transportation - Alternative
• Tree Service
• Water Treatment - Filters & Purifiers
• Financial services (responsible investing)

To assist and encourage businesses to improve their environmental practices and to increase focussed marketing efforts, some areas have adopted special programs that either award 'green behaviour' or provide recognized certification where businesses achieve a pre-determined standard of excellence in environmental performance. The boxes in this section describe three such initiatives that are achieving considerable success for participating businesses.

Environmental Indicators: There are clear environmental advantages if a region adopts a strategy of promoting greener products and services. The 'switch' from activities that are not environmentally sustainable/friendly to activities that can be more readily defended in this realm would have an inherently positive impact on the natural environment.

Social Indicators: Small businesses and entrepreneurs often have a difficult time gaining financial stability and profitability. Commonly used statistics suggest that more than 50% of small businesses fail within the first two years of operation. However, it is also acknowledged that small businesses are the largest employer in Canada and are the single largest contributor to the health and vitality of local economies. An economy that can be diversified through a deliberate strategy of market support and identity development that helps to sustain small businesses would be a significant benefit to the region. Women operate over 36% of small businesses in British Columbia. The majority of owner/operators are between the ages of 35 and 55 but there is a significant portion (20%) under the age of 25. Older workers (55+) account for 19% of all entrepreneurs in the province.

Economic Indicators: In 2001, almost 98% of all businesses in British Columbia were small businesses. Micro-businesses (those with fewer than 5 employees) constituted 83%. The sector generated an estimated 930,900 jobs (58% of all private sector employment) and contributed 28% to the provincial GDP.[6] On average, small businesses pay their employees at a lower rate than large companies (est. to be approximately $8000 less/year). In 2001, the average small business employee earned $29,558.00. The province estimates that tourism, high tech and value added (secondary) processing will become the major economic generators in BC over the next decade. The service sector (with some obvious overlap into tourism) currently comprises the majority of small business owners. In 2001 there was small but steady growth in both the number of establishments and in employment statistics for the tourism sector (2.4%), significant growth in the high tech sector (8%) and a decline in the secondary manufacturing sector.

Many environmental businesses are small. They also face unique economic challenges in accessing their markets and requiring higher prices than their less environmentally responsible competitors. Without a system of full-cost accounting in our society going green continues to come with a higher cost. Nonetheless, the tremendous growth of industries such as organic products and natural health care demonstrates that there is demand for environmental alternatives. Ecolabelling efforts such as Canada's environmental choice program and forest products certification schemes are seeking to provide a market advantage and identifiable image for green companies.

Opportunities for First Nations: Small businesses that have a 'green' focus may be a natural fit for First Nation's entrepreneurs. There may be some capacity building requirements for business planning, marketing and management but the opportunities that are available to be exploited, particularly by the younger generation and the suitability for some small business activity in outlying communities are important factors to consider.

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[1] The LEED (Leadership in Energy and Environmental Design) Green Building Rating System[TM] is a voluntary, consensus-based national standard for developing high-performance, sustainable buildings. Members of the U.S. Green Building Council representing all segments of the building industry developed LEED and continue to contribute to its evolution. LEED standards are currently available for:

• New construction and major renovation projects
• Existing building operations
• Commercial interiors projects

• define "green building" by establishing a common standard of measurement
• promote integrated, whole-building design practices
• recognize environmental leadership in the building industry
• stimulate green competition
• raise consumer awareness of green building benefits
• transform the building market

Contacts:

• Barbara Bryant, Tofino Business Assocation
• Chambers of Commerce, Ucluelet and Long Beach-Tofino
• Gord Johns, Fiber Options
• Warren Rudd, Tofino Community Investments
• James Rogers, Cedar Corners Development
• Central Westcoast Forest Society

Publications:

• BC Stats, Small Business Profile 2001, Ministry of Competition, Science and Enterprise, 2002

Internet:

• Green Tourism Business Scheme, www.green-business.com/AboutUs.asp, 2002, Scotland
• Green Partners Program, www.greenpartners.org , 2003, Florida
• Coop America, Green Pages Online, 2001, www.greenpages.org
• Green People, www.greenpeople.org, Santa Monica, CA
• Natural Choice Directory of Puget Sound, Washington, www.naturalchoice.net/
• Environmental choice program, www.environmentalchoice.com

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