Drivers for Sustainable Business Models in Start-Ups: Multiple Case Studies

Abstract

Mechanisms that large organizations employ to facilitate corporate social responsibility (CSR) engagement simply do not apply to start-ups due to distinct differences. The purpose of this study was to gain insight into how start-ups strive for sustainability in their business models by investigating internal and external drivers related to organizational processes, managerial characteristics, and stakeholder expectations. We explored key factors such as decision-making regarding CSR engagement, business values about sustainability, entrepreneurial orientation, and the relevance of the CSR theater (philanthropic orientation, disruptive innovation, or transforming the ecosystem). Multiple case studies and interview data elucidated how start-ups engage with their community and stakeholders to determine the best approach to sustainability demands, how start-ups embed sustainability practices within their business models, and how these practices match with the entrepreneurs’ personalities. On the basis of our case studies and data analysis, we propose that the decision to engage in CSR is treated as an investment decision. The business values of a start-up determine its CSR engagement. The philanthropic drive of a start-up determines its CSR initiatives, which are then in line with the field the start-up is operating in. Entrepreneurs’ willingness to adopt CSR practices is determined by their personalities and organizational expertise and experiences. CSR engagement within the business models of start-ups is based on a combination of financial and social capital, while financial benefits act as a continuous motivator for CSR engagement from inception.

University Start-Ups: The Relationship between Faculty Start-Ups and Student Start-Ups

“…Last, even though they did not discuss universities, Eulalia and Romuald [33] examined success factors of start-ups in the European Union. Emphasizing that it is imperative for start-up companies to boost innovation levels, the competitiveness of national economies also needs to be considered as a factor impacting sustainability [34], this study determined the key success factors of start-ups in the EU and classified the gap between developed and lagging member states. The results indicated that more developed countries offer an institutional competitive advantage to start-ups through such factors as institutions, human capital, and certain dimensions of social capital.…”

Entrepreneurship Education as a Strategy to Build Regional Sustainability

“…Our literature review indicates a need to specify the purpose of the programme [6,11,19]. The programme displays a lack of clarity concerning whether enterprising activity is seen as endogenous or exogenous to existing market forces; whether to seek development or business productivity [6]; whether to build a programme targeting rural or urban contexts [46,48,49]; whether to specify short-term objectives and learning methods [11,26]; whether to seek social and philanthropic utility, innovative development or economic growth and productivity [6,20]; and, last but not least, whether to establish selection parameters which mirror the relevant target groups, their start-up maturity and their context [6,50,51].…”

“…Sustainability is an area which is particularly poorly defined in our case programme, rather considering a general definition, objectives or an overall purpose of the programme. Poorly definitions of sustainability may lead to difficulties in adopting sustainability practice [20]. This has led to doubts about the real function or inclusion of sustainability as a dimension in the programme.…”

“…A third consideration regarding entrepreneurship is directed towards the social sector, utility or social entrepreneurship. This could also be considered exogenous to the established market context since, for example, concepts of measurable profit and growth are not necessarily prioritised over less tangible concepts of public or social utility [6,20]. In our view, this is also a relevant conceptualisation of the self-described purpose of some of our informant companies in the case programme; it is also part of the programme's more general objectives of contributing to a more sustainable Arctic, without further definition of this term.…”

Are Italian Start-Ups ‘Born Sustainable’? A Systems Approach to Sustainability Challenges

“…This implies that a networked and collaborative environment (ecosystem) is essential for triggering co-creative paths able to meet start-ups strive for development as well as other actors (stakeholders) expectations now and in the future (Ruokolainen et al, 2011). Thus, start-ups can be considered 'born sustainable' or sustainability-oriented when they act-inspired by entrepreneurs' mind-set and valuestaking into account sustainability and value implications at different ecosystem levels (micro, meso and macro) and for different individuals and/or collective actors (or stakeholders) (Voinea et al, 2019). However, it worth noting that further research is still needed to better understand how start-ups engage and, thus, interact with other ecosystem actors (e.g., PIJ/Volume 4 -Issue 2/2019 ISSN: 2499-1333 incubators, research centres, institutions, clients, etc.…”