I. Industry Risk Analysis

(1) Policy Risk

During the policy window period of the rapid development of the degradable plastics industry, entrepreneurs face transitional policy risks. At present, there are vague standards in the policy – making stage (for example, there is a lack of a unified certification system for degradation conditions and time), which makes it difficult to judge product compliance. At the policy implementation level, the local regulatory scales vary, and cross – regional sales are prone to encounter access barriers. In the future, policy adjustments may reduce subsidies or switch support directions due to disputes over technological routes (such as competition among materials like PLA/PHA), resulting in the invalidation of previous R & D investments. When international policy iterations (such as new regulations in Europe and the United States) are out of sync with domestic policies, export – oriented enterprises will bear double compliance costs. The volatility of the policy life cycle leads to the risk of “betting deviation” in the industry.

(2) Economic Risk

Driven by policies during the expansion period, the production capacity of the degradable plastics industry is released intensively. However, the expected economic recession leads to weak demand in downstream packaging and agricultural sectors, intensifying price competition. The price of lactide, a raw material, is significantly affected by the international crude oil cycle, and start – up enterprises face cost – transmission pressure. During the period of tight monetary policy, the financing threshold is raised, and the financial pressure for technology R & D and equipment renewal doubles. The periodic strengthening of green trade barriers in Europe and the United States, combined with exchange – rate fluctuations, squeezes the profit margins of export – oriented enterprises from two aspects. The risk of mismatch between the industry inventory cycle and the macro – economic cycle is prominent, and small and medium – sized production capacities may face structural clearance.

(3) Social Risk

From the perspective of inter – generational consumption differences, the high acceptance of environmental protection concepts among the younger generation and the price – sensitive consumption habits of the older group form a hedge, causing degradable plastic products to fall into the “environmental premium dilemma”. Driven by policies, enterprises rely too much on government orders, but the penetration rate in the basic consumer market is restricted by the insufficient actual purchasing power of Generation Z and the inertia of relying on traditional plastics in the sinking market. The inter – generational cognitive gap leads to a marketing dilemma: radical environmental narratives are easily suspected of “greenwashing”, while pragmatic promotion is difficult to break through consumers’ distrust of degradation efficiency.

(4) Legal Risk

Entrepreneurs entering the degradable plastics industry need to be vigilant against three legal risks. First, if the production process fails to meet national degradation standards (such as GB/T 20197 or EU certification), they may face penalties under the Advertising Law and the Anti – Unfair Competition Law due to false publicity. Second, if the pollution discharge indicators and solid waste treatment in the production process exceed the scope permitted by the environmental impact assessment, it will trigger liability under the Law on the Prevention and Control of Environmental Pollution by Solid Wastes. Third, when the intellectual property layout is insufficient, they are prone to get involved in litigation disputes due to patent infringement of formulas. Especially in cross – border sales, they may be restricted from market access by European and American enterprises using patent barriers.

II. Entrepreneurship Guide

(1) Suggestions on Entrepreneurship Opportunities

Currently, entrepreneurship opportunities in the degradable plastics industry are concentrated in high – growth niche markets driven by policies. Entrepreneurs should focus on scenarios of rigid – demand substitution such as take – out packaging, agricultural mulch films, and medical consumables. They should give priority to laying out in regions with clear policy subsidies (such as first – tier cities with strict implementation of the plastic ban order), develop low – cost customized products (such as modified PLA/PBAT materials) for small and medium – sized B – end customers. At the same time, cooperate with large petrochemical enterprises to use their raw material channels to reduce production costs, and establish a regional recycling and treatment closed – loop to solve the pain point of insufficient back – end degradation facilities. On the technology side, they can explore performance optimization (such as improving heat resistance) or develop patents for mixed materials to quickly seize green procurement orders from channels such as catering and supermarkets.

(2) Suggestions on Entrepreneurship Resources

Entrepreneurs in the degradable plastics industry should give priority to integrating technological resources, cooperate with universities and research institutes to obtain patent authorizations or jointly develop new materials, and lower technological barriers. In terms of supply – chain resources, they should lock in manufacturers with stable supply capabilities of mainstream raw materials such as PBAT/PHA and sign long – term price – guarantee agreements to control costs. They can obtain start – up funds by applying for special funds for environmental protection industries, green credit, and tax – preference policies from local governments, and access shared environmental protection testing equipment and production qualification certification services in industrial parks. They should give priority to expanding B – end customers such as municipal projects on the government procurement list and chain supermarkets, and establish a C – end distribution channel through e – commerce platforms. They should participate in the formulation of industry standards jointly with industry associations to enhance brand voice, and establish a material recycling system to realize the secondary use of recycled materials and improve resource utilization efficiency.

(3) Suggestions on Entrepreneurship Teams

Entrepreneurs in the degradable plastics industry need to focus on recruiting materials science experts to solve technological bottlenecks, supply – chain talents to ensure the stable supply of bio – based raw materials, and regulatory affairs specialists to track global plastic – ban policy trends. At the same time, they should be equipped with marketing personnel with industrial product channel resources. When forming a composite team, they should give priority to ensuring that core members have experience in R & D of environmental protection materials in multinational enterprises or project management in large chemical enterprises. A joint decision – making mechanism between the technology team and the market team should be established to balance the R & D cycle and customer delivery pressure, and equity – binding methods should be used to lock in quality control talents with international certification experience such as ACS.

(4) Suggestions on Entrepreneurship Risks

Entrepreneurs in the degradable plastics industry need to dynamically track the latest environmental protection policy standards, reserve raw materials in advance to lock in price – fluctuation risks, and give priority to entering niche markets with clear policy support such as food packaging and agricultural mulch films. A third – party testing mechanism should be established to ensure that the product degradation rate meets the standards and avoid legal disputes caused by “pseudo – degradation”. They can obtain raw material procurement channels and equipment leasing resources through industry associations, and jointly build R & D laboratories with universities to reduce initial technology investment costs. They should focus on laying out in environmental protection demonstration parks in coastal cities and use regional subsidy policies to reduce early – stage operating costs.