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Potentials of Entrepreneurial Approaches in Addressing Global Societal Challenges: the Case of Fresh Water Supply

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Potentials of Entrepreneurial Approaches in Addressing Global Societal Challenges: the Case of Fresh Water Supply Submitted by: Alaleh Fallah Toussi (11735049) Submitted at: Institute of Innovation Management Supervisor: Univ.-Prof. Dr. Matthias Fink December 2020 Potentials of Entrepreneurial Approaches in Addressing Global Societal Challenges: The Case of Fresh Water Supply Master’s Thesis to confer the academic degree of Master of Science in the Master’s Program Management JOHANNES KEPLER UNIVERSITY LINZ Altenberger Str. 69 4040 Linz, Austria www.jku.at DVR 0093696 Statutory Declaration I hereby declare that the thesis submitted is my own unaided work, that I have not used other than the sources indicated, and that all direct and indirect sources are acknowledged as references. This printed thesis is identical with the electronic version submitted. Linz, 20.12.2020 2 Abstract This research “originally” aims to examine the general issues of water distribution to consumers in dispersed areas in Sweden and the question if a startup could be a solution to their current and future issues. My goal is to clarify how an entrepreneurial business model can look up for disperse areas in Sweden in order to distribute water and deliver energy supplies to inhabitants. In doing so, we have selected the municipality of Lilla Edet in Västra Götaland County of Sweden as an example. Although this research in particular focuses on scattered areas in Sweden, the insights and the conclusions could be possibly practical elsewhere in Europe, Africa or the Middle East. 3 Acknowledgement I would like to express my sincere appreciation to my patient University Professor and also Supervisor, Professor Dr. Fink who has always supported me through the entire process of conducting my thesis from the beginning until the end. I am very thankful to his friendly support, sincere tips and advice which were all very heartwarming when facing the challenges of this research in the time of Covid-19. 4 Table of Contents 1. INTRODUCTION .......................................................................................................................7 2. BACKGROUND: OPERATIONS & INFRASTRUCTURES .................................................. 10 3. CASE STUDY ......................................................................................................................... 14 3.1. GÖTA RIVER .................................................................................................................................... 15 3.2. LULE RIVER ..................................................................................................................................... 19 4. EMPIRICAL RESEARCH: QUALITATIVE DATA ANALYSIS ............................................. 21 4.1. LILLA EDET’S INTERVIEW OUTLINE ................................................................................................ 21 4.2. TOPICS COVERED IN THE INTERVIEWS ......................................................................................... 23 5. STARTUP AS A SOLUTION, DESIGNING A BUSINESS MODEL ..................................... 27 6. RUNNING INTO AN UNEXPECTED INSIGHT ........................................................................ 29 7. FURTHER DISCUSSIONS ..................................................................................................... 31 5 Table of Figures Figure 1, Västra Götaland County .............................................................................................14 Figure 2, Göta River ..................................................................................................................18 Figure 3, Luleå Municipality.......................................................................................................20 Figure 4, Lule River ...................................................................................................................20 6 1. Introduction Water is necessary to survive. Unlike some countries such as Israel where people are taught to appreciate water as it is scarce in this part of the world (Ofek and Preble, 2017), many European countries do not have water scarcity issues. However, many of their inhabitants particularly in dispersed areas face issues in regard to water accessibility. Regardless how wealthy that European country is in terms of economics, this issue remains the same in all: how to distribute water in scattered regions within the country. In most countries as in Sweden, drinking water supplies are provided and distributed locally. Thus, local governments are mainly in charge of supplying drinking water for their inhabitants. Important mentioning that regional and national levels additionally play key roles within this process. From planning to regulation and supervision as well as law enforcement, all levels are involved from the top to the bottom (Bendz & Boholm, 2019a). Therefore, drinking water management could be addressed as a political debate (Bendz & Boholm, 2019b) - if not in all countries - at least in most of the countries. Therefore, water management not only today but also in the future entails the attention of politicians at all levels. Finding an effective and efficient solution regarding water management issues is not easy, since the issues themselves are complex and challenging. There are often a number of obstacles such as “planning problems, with intertwined problem formulations and solutions, ridden with disagreement and uncertainty” (Bendz & Boholm, 2019b). Although it is not a long time since drinking water supply has been regarded at the national-level policy criteria in Sweden, the lack of awareness and or (ignorance) of many local politicians and or people playing a key role in the local government – for example the role of people of technical background in water and sewer management section – is questioning (Bendz & Boholm, 2019b). 7 “The Drinking Water committee report that was submitted to the Swedish government in 2016 concludes that drinking water is by far the most critical support system in the country, a prerequisite for the functioning of the society, companies and all sorts of activities” (Bendz & Boholm, 2019b, p. 2). A number of obstacles contribute to addressing water management issues in Sweden – but also globally. Senescent technical infrastructure, social changes as urbanization and finally climate impacts are these challenges. Thus, they require critical attention today so as to ensure that water will be available for the future generations (Bendz & Boholm, 2019b). Climate change results in increasing sea levels, heavy rains leading in floods and rising temperature. It is crucial to be prepared for the future as these problems are predicted to occur more often in the future. Hence, the most vital thing to survive, which will be threatened is the supply of safe and sound drinking water (Bendz & Boholm, 2019b; Wheeler and von Braun, 2013). As already mentioned, in Sweden local municipalities play a key role in addressing the debates. In this country local governments within municipalities possess an enormous amount of authority (Wollmann, 2004). According to national rules and constitution, local governments in municipalities make decisions in regard to service supplies for inhabitants. Municipalities are in charge of provisioning drinking water and managing service production for example waterworks, pipelines and other facilities. They are further required to identify and manage risks. Thus, the interaction between public and political attention in communities could considerably impact on water resources management (Bendz & Boholm, 2019b). Based on what we have explained so far, within this paper we address the challenges that the municipality of Lilla Edet is nowadays dealing with in respect to water provisioning to their citizens. We tend to examine these challenges from close perspective and we aim to provide a plausible 8 solution to help out their burdens and facilitate their processes in this respect. For this reason, we have designed interviews to be conducted with the authorities who can influence relevant general agenda concerning own municipality and also day to day operations to deliver water to their citizens. Despite extensive efforts and enthusiasm to find out about their issues, we were very surprised by the ignorance of the authorities, which we later thoroughly would address within chapter 6 in this paper. This unexpected result made us examine the reasons why the authorities refused to get involved in spite of the fact that considerable attempts were performed to reach out to them and furthermore, the fact that this topic is of great importance. Thus, such questions arise: - Why do local authorities lack interest for today’s water challenges they are facing? - How can local authorities ignore their responsibility for ensuring water supply? - Finally, why do local authorities lack interest for someone who extensively attempts to reach out to them to offer help for free? These are the issues we surprisingly encountered, in the phase of our interviews and thus, they pushed us into completely different perspective as “new challenge”. We, therefore, move forward into this direction and question this situation as the result of our interviews by examining from different perspectives driven from previous literature trying to understand what we encountered and why. This field additionally rises an interesting open question for the future research: “How could you expect people to contribute in global societal challenges while politicians ignore the problems?” Especially when this is the case in “developed
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