Written by Bruna Gabriele
Edited by Othaila Abuzaid
Industries have played a crucial role in the environmental problems we face today. However, entrepreneurship is about finding new and innovative ways to create value and grow a business. In recent years, many entrepreneurs have realized that creating a sustainable future is just as important as building a profitable one. Sustainability has become an important term nowadays for both large and small companies that hold a considerable position in the market. Furthermore, consumers play an important role in encouraging companies to adopt such practices.
What is Sustainable Entrepreneurship?
As we know, entrepreneurship opens countless possibilities, but one of them is gaining more space in the market among consumers and brands: sustainable entrepreneurship. But after all, what is the meaning of this term?
Sustainable entrepreneurship represents a commitment to balance the social and environmental aspects of business. In other words, these are activities and products that seek commercial success and consider a positive impact on the planet.
The idea behind this concept is to work with sustainable products and businesses that combine profit generation with attention to the social and environmental impact of the tasks performed by the company. Its main characteristic is humanized management that considers the consequences of its services and products for the world and the environment
What are the characteristics of sustainable entrepreneurship?
Some characteristics that make up sustainable entrepreneurship practices are:
Ecological Awareness: prioritizing practices that minimize environmental impact;
Social Responsibility: aiming at a commitment to the well-being of the community and employees
Sustainable Innovation: constantly seeking eco-friendly and efficient solutions;
Use of Renewable Resources: valuing the use of sustainable energy sources and materials;
Circular Economy: adopting business models that reduce waste and reuse products;
Transparency and Ethics: maintaining transparent and ethical practices;
Collaboration: forming partnerships that enhance sustainability and the reach of the business;
Longevity: focusing on long-term result-oriented strategies in harmony with the environment; flexibility to adjust to changes in the sustainable landscape;
Empowerment and Social Inclusion: addressing core social issues, sustainable entrepreneurship empowers underrepresented groups; sustainable entrepreneurs often develop pioneering technologies and business models.
Many large and small companies use some or all of these elements not only to achieve success in their fields but also to build trust with their consumers and investors by prioritizing not only profit but also the well-being of the planet.
The future that sustainable entrepreneurship holds
With sustainable practices from many companies growing, a term called ESG emerged.
Environmental, social, and governance (ESG) refers to a set of standards for a company’s behavior used by socially conscious investors to screen potential investments.
The three terms refer to different elements:
Environmental criteria: refers to how a company addresses the environment in their behaviors.
Social: refers to the relationships with employees, customers, and communities.
Governance: involves a company’s leadership, executive, internal controls, and shareholder rights. Moreover, those behaviors are highly motivated by notable investors and institutions, such as BlackRock and Norway’s Sovereign Wealth Fund.
Sustainable Entrepreneurship holds the promise of directly aligning with Sustainable Development Goals. Innovative technology solutions are to be an invaluable ally to sustainable entrepreneurship. Tools and solutions that align profitability with ecological responsibility are paving the way for a new era of business that respects the planet and its people. One term that has become more popular among businesses is Net Zero:
“Net Zero Innovation is the process of developing and implementing new strategies, practices, and technologies to dramatically reduce greenhouse gas emissions, particularly carbon emissions. Its ultimate aim is to balance the amount of greenhouse gases produced and the amount removed from the atmosphere. Taking an innovative approach is an essential component of our response to the climate crisis and is key to transitioning towards a circular economy.” (Jo North)
Net Zero opened doors to the opportunities of sustainable innovations and technologies that promise to transition towards a sustainable future for entrepreneurship. Sources that provide clean energy, such as wind power, solar energy, hydropower, biomass, or perhaps electric vehicles, are directly aligned to the Net Zero goal. However, it is not only limited to these sectors. One example is the concept of the “digital twin”. This technology can create a replica of buildings, cities, or an electrical grid. It is not only used to create scenarios but also to optimize energy use, reduce emissions, and plan for the integration of renewable energy sources.
Therefore, we can analyze the promises sustainable entrepreneurship holds for our future. This can be through increased innovation regarding sustainable practices or through companies adopting more responsible practices, either way, sustainable entrepreneurship promises a better quality of life for everyone and leads to a better future for the people and the planet.
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References:
Empreendedorismo sustentável: o que é e por que colocá-lo em prática? (n.d.). https://digital.unesc.net/blog/empreendedorismo-sustentavel-o-que-e-e-por-que-coloca-lo-em-pratica
Digital, O. (2023, October 4). Empreendedorismo sustentável: conceito, vantagens, exemplos. Blog Para Contadores E Empreendedores. https://blog.omie.com.br/empreendedorismo-sustentavel-4-dicas-para-prosperar-nos-negocios/
Team, A., & Team, A. (2023, February 1). The role of sustainability in entrepreneurship. AIContentfy. https://aicontentfy.com/en/blog/role-of-sustainability-in-entrepreneurship
North, J. (2023, September 9). Sustainable entrepreneurship and Innovation in 2023. The Big Bang Partnership. https://bigbangpartnership.co.uk/sustainable-entrepreneurship/
Team, I. (2024, February 6). What is Environmental, Social, and Governance (ESG) investing? Investopedia. https://www.investopedia.com/terms/e/environmental-social-and-governance-esg-criteria.asp
North, J. (2023a, July 18). Net Zero Innovation and Technology: sustainable business. The Big Bang Partnership. https://bigbangpartnership.co.uk/net-zero-innovation-and-technology-sustainable-business/
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