Sustainable Entrepreneurship - Why It Matters
The Importance of Sustainable Entrepreneurs and Businesses
Sustainable entrepreneurship matters because the environment matters. Entrepreneurs and the companies they create and manage are responsible for providing opportunities and services that improve our quality of life, contribute to social improvement, and ensure we meet the economic and environmental needs of present and future generations. A sustainable business model can be defined as one that is profitable and also provides products and services in a way that doesn’t destroy, deplete, or degrade the natural capital on which it relies. Put differently, sustainable businesses make money while minimizing their negative impact on people and the planet.
Keep reading below for an excerpt on why sustainable entrepreneurship matters by Arihant Patni, managing director of Patni Financial Advisors.
Written by Arihant Patni
As a result of global challenges, acting on economic developments consistent with the principles of sustainable development is an important task for governments, academia and industries around the world. The mounting importance of environmental issues and sustainable development has given rise to the concept of sustainable entrepreneurship. Sustainable Entrepreneurship or what is being termed “Sustainopreneurship” aims at the protection of nature, life support and community in the pursuit of perceived opportunities to bring into existence future products and processes with both economic as well as non-economic gains to individuals, the economy and society.
While debates rage on about whether environmental issues should be heavily invested in, sustainability entrepreneurs around the world are making heavy strides toward a greener way of life. Sustainable entrepreneurship can be considered an opportunity for business development practices at the nexus of environmental and social aspects. Companies increasingly consolidate their competitive position through innovative actions in the field of sustainability.
Why It Matters
When Economics and Social Impact Join Forces
The importance of sustainable entrepreneurship can be considered a unique perspective that links the creation of economic, social and environmental values with a focus on the well-being of future generations. Companies considering environmental and social aspects are considered to be innovative. A common feature of such entrepreneurs is that their goal is not only to achieve profitability by meeting specific needs, but also to achieve a positive impact on society and the environment. This may be reflected in the saving of raw materials – packaging, electricity – bioenergy or consolidating existing ecosystems – honey from neighboring areas.
Sustainable entrepreneurship is perceived as a solution to, rather than a cause of, environmental degradation and social inequality.
Massive Marketplace Prospects
Sustainability entrepreneurship builds on the basics of entrepreneurship and extends it to encompass addressing ecological and social concerns through the creation of new enterprises and innovation in existing enterprises.
Sustainable businesses recognize change in the form of the increased scientific evidence about the effects of ecological disruption on human populations and the environment and increasing evidence of rising social inequities that are disruptive to the business environment and global society. Sustainable businesses recognize change by understanding that the consuming public is becoming increasingly concerned about these challenges to a sustainable world.
These changes create market opportunities for sustainability-focused businesses. The market opportunity includes the opportunity to address concerns about sustainability by providing new products and services that reduce energy and natural resource use. The opportunities to address sustainability concerns are worth pursuing if new ways of addressing the concerns can be conceived and delivered in ways that bring net value to significant numbers of consumers in the marketplace. A key for successful sustainability entrepreneurs is to make sure that the new way of doing things they create provide value to their potential customers.
Think Inventive, Out-Of-The-Box!
Entrepreneurship as a mind-set, or kind of behavior, lends itself well to sustainable business practices. For sustainable business practice, entrepreneurship is about constantly looking for innovative ways to protect the environment or improve societal conditions by providing new goods, services, or methods that reduce detrimental activities while also generating profits for the entrepreneur. By always thinking about doing things in new and better ways, entrepreneurship is highly relevant to individuals and organizations interested in sustainability.
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