Abstract:This study sought to establish the social and environmental factors that influence sustainable entrepreneurship (SE) in Small-and medium-sized enterprises (SMEs). It also attempted to identify whether the demographic background of the entrepreneur influences the SE in SMEs of the Iranian food industry. A mixed method approach, employing the use of questionnaires and interviews from a sample size of approximately 130 participants and 12 owner-managers of SMEs in food industry, was used to collect data. Data were analyzed using descriptive statistics and several inferential analyses. Findings showed that certain characteristics of the entrepreneur, including work experience and education, have a significant impact on SE. Furthermore, out of the eight identified factors, according to the participants' perception, the most important factors towards sustainable performance of SMEs in food industry are social factors, including customer orientation, as well as human resources and environmental factors, including recycling and the future of Earth. This research paper concludes that considering the social and environmental aspects of sustainability and employing experienced staff would majorly contribute to the pursuit of SE in SMEs of food industry.