A sustainable business model
A sustainable business model is what the modern entrepreneurs focus to develop. A sustainable business focus to make profits while considering the social and the environmental demands. However, most entrepreneurs find it a challenge to integrate the three dimensions of sustainability simultaneously due to the conflicting demands of each of the pillars.
Sustainability literacy
Sustainability literacy equips the students with skills on how to create value with the available resources without jeopardizing the existence of the resources for future generations. Therefore, sustainability education acts as a solution to the increased number of unsustainable businesses. The paper aims to prove how sustainability education can change the student approaches and perceptions to entrepreneurship.
Qualitative data
Qualitative data will be used to prove the skills that students learn from sustainability education and how to apply them in problem-solving strategies. The impact of sustainability initiatives in entrepreneurial ventures will be critically analyzed basing on the past research. The comparison of the financial performance between the companies that uphold sustainability and those that do not take part in sustainability will be critically analyzed. Furthermore, the recommendations will be made on how to enhance sustainability programs in schools as a way to solve global warming and severe weather conditions.
Sustainability entrepreneurship
Sustainability entrepreneurship is a result of incorporating the sustainability skills in the marketing and business courses. Sustainability entrepreneurship refers to the problem-solving strategies with regard to the economic, social, and environmental factors. The study is testing whether sustainability changes the student perception and approaches to entrepreneurship. Furthermore, the relevance of embedding sustainability courses in higher education will be analyzed.
Sustainability education changes the student’s perception and approaches towards entrepreneurship. The education policies should, therefore, consider the implementation of sustainability programs in higher educations. Sustainability emphasizes the exploitation of natural resources in a manner that secures the availability of resources in the future (Munoz and Cohen, 2018). Economic, social and environmental aspects are the three major pillars of sustainability. The three pillar of the sustainability shapes decision-making process of entrepreneurial ventures (Kuratko, 2016). Therefore, this paper aims to discuss how sustainability education changes the student perception and approaches towards entrepreneurship.
Background and significance of the study
In the past, entrepreneurs ignored the concept of sustainability in business ventures. Turning a blind eye to the sustainability requirements led to environmental degradation practices. The businesses only focused to make profits at the expense of the social and environmental concepts. Deployment of resources and global warming were the major negative outcomes of the unsustainable business ventures. The climatic changes and environmental degradation pose a threat to the health of the people. Therefore, the United Nations Environment Programme (UNEP) was established to recommend business initiatives that promote sustainability (Kuratko, 2016). Therefore, this research will help to illustrate the role of sustainability education and its application in entrepreneurial ventures.
Problem statement
The high number of unsustainable businesses enterprises has necessitated the need to think of effective mechanisms to enhance sustainable practices. Entrepreneurs are expected to integrate sustainable business models in order to cause no harm to the society and environment. Entrepreneurship in the past was perceived as a profit-making strategy at the expense of the social and environmental factors (Figueiró and Raufflet,2015). However, focusing on profits alone leads to other higher levels problems in the environment and the society at large. Thus, sustainability education will be a solution to unsustainable businesses such that it will nurture responsible entrepreneurs.
Research questions
What is the perception of students towards entrepreneurship?
Does sustainability education change the student perceptions toward entrepreneurship?
How does sustainability education change the student approaches to entrepreneurship?
Is it relevant to embed sustainability education in the curriculum?
Objectives and aims
The need to achieve a sustainable business enterprise has been a major concern for most entrepreneurs. The conflicting demand of the social, economic and environmental aspects gives the entrepreneurs a challenge to adopt green business initiatives (Munoz and Cohen, 2018). Therefore, the paper aims to give practical recommendations for incorporating the three pillars of sustainability in enterprises. The research will also illustrate the relevance for promoting the sustainability education in schools in order to nurture responsible entrepreneurs. The research focuses to prove the following hypotheses.
H1-Sustainability education equips the students with the necessary skills for the integration of the social, environmental and economic demands.
H2-Sustainability education is a solution to unsustainable entrepreneurial ventures.
The objectives of the study will be attained using the secondary method of data collection. The research will compare the perception of entrepreneurship among the students and critically evaluate how sustainability concepts can shape their application of entrepreneurship. Literature review method will provide the arguments on the past research about the topic. Further, the results section will illustrate the findings of the study. The discussion section will expound on the findings obtained from research. Thereafter, conclusion and recommendation section will summarise the study and propose initiatives for a sustainable business.
Literature Review
Literature review section gives an insight into the past studies on the topic. The section will deeply provide the content about the student perception of entrepreneurship. The relationship between sustainability education and entrepreneurship will be explained critically basing on the past studies. The theoretical background from the literature will be evaluated to find out the importance of sustainability in entrepreneurship. Thereafter, the findings from the literature will provide relevant arguments about the topic. The limitation of the study will be explained and the need to study the topic in the future.
Sustainability education and approaches to entrepreneurship
Herranen, Vesterinen, and Aksela (2018) analysed the impact of sustainability education to student perceptions of entrepreneurship. The researchers explained how sustainability education can be enhanced in higher education as a way to nurture entrepreneurship among the students. They used learner-driven and student-centred approaches to explain how sustainability education can be enhanced in universities. The researchers suggest the learner-driven and learner-centred approaches to enhance understanding of sustainability pillars in entrepreneurship. Learner-driven approach, on the other hand, states that students should be viewed as change agents of education. The leaner driven concept gives the students control over their education and encourages them to conserve nature. According to the authors, student centred approaches together with entrepreneurship education gives the students an insight on how they can tackle sustainability issues. Aikens, McKenzie, and Vaughter (2016) expanded the concept by adding that sustainability education equips the entrepreneurs with skills to tackle the challenges in the environment. On the contrary, Burton, Sørensen, and Dobrev, (2016) used the trait theory to explain the minimal impact of sustainability education in shaping the student perception towards entrepreneurship. The trait theory suggests that entrepreneurs are born with unique characteristics that include self-confidence, innovation, and independence. The author argued that effective entrepreneurship initiatives are dependent on the unique behaviours that an individual is born with and is limited impacted upon by the external education(Burton, Sørensen, and Dobrev, 2016). However, the study has been criticised as it lacks to recognise the career and attitudes that can be provided by sustainability education to advance entrepreneurs. The studies done by Herranen,Vesterinen, and Aksela (2018) identifies the relevance of sustainability education and propose the theories to be used in nurturing the responsible entrepreneurs. Aikens, McKenzie, and Vaughter (2016) also emphasize the three principles of sustainability and how it impacts the student perception of entrepreneurship. The trait theory learnt from the works of Burton, Sørensen, and Dobrev, (2016) helps to explore the concept of sustainability education in multiple dimensions.
Vincent, Danielson, and Santos, (2015) conducted a research to analyse the external forces that affect the student perception of entrepreneurship. The school and social groups were found to be the two major factors that influence the student perceptions on entrepreneurship. The undergraduate students were among the participants who required to gives their views and opinions concerning sustainability. Entrepreneurship is perceived as a career by some students while others viewed the concept as the ability to implement problem-solving strategies towards societal problems. The students who had an educational background on sustainability aspects perceived entrepreneurship as problem-solving initiatives (Vincent, Danielson, and Santos, 2015). The school and social groups shape the extent to which people think about the business opportunities in society. Moreover, Edirisinghe and Nimeshi, (2016) argued that individual perception of the environment determines the objectives that one focuses to attain using the available resources. Some students view the opportunities in society while others perceive the risks involved in entrepreneurship. The authors stated that entrepreneurship is advanced by the motivation factors. Education and encouragement are examples of motivation strategies that can be used to shape entrepreneurship. The positive perception towards sustainability practices nurtures responsible entrepreneurs (Edirisingheand Nimeshi, 2016). Munoz and Cohen, (2018) added that students in higher education have a role in shaping their education as a way of learning problem-solving skills in the business world. Munoz and Cohen (2018) emphasizes the need for entrepreneurial operations to be sustainable. The students through a Lerner-driven approach can develop solutions to existing problems. The learner-driven approaches nurture transformative thinking among the students hence encourages entrepreneurship. The theories also motivate the students to develop something on their own through experimenting and collaborative learning. The active role of the learners enables them to create a solution to the existing problems in the community. Learner-driven and student-centred theories make students to understand that entrepreneurship is not only about making profits but comes with social and environmental responsibilities according to Herranen, Vesterinen, and Aksela, (2018).
Figueiró and Raufflet, (2015) suggested that sustainability education can be enhanced by focusing on natural science. The authors further stated that sustainability education is eco-driven and teaches the students how to make wiser decisions concerning the exploitation of natural resources. The authors stated the three pillars of educational sustainability which are ecology, ethics, and evolution. O’Byrne, Dripps, and Nicholas, (2015) stated the importance of sustainability education that it gives an insight to students on how to make wise decisions concerning the exploitation of resources as they are part of the ecosystem. The teachings help the students to recognise the existence of natural resources and try to advocate for policies that conserve nature rather than working against it. According to Figueiró and Raufflet, (2015), the partnership and collaborative behaviours nurtured in schools derive values such as social justice and environmental conservation. The students are able to understand the complexity of the universe and the scarcity of natural sciences hence learn how to use. Therefore, O’Byrne, Dripps, and Nicholas, (2015) argue that the integration of sustainability education is relevant for students at higher levels such as colleges and universities. The students are able to learn how to tackle the challenges in the universe using the available resources hence entrepreneurship (Figueiró and Raufflet,2015).
Amran and Keat (2014) argued that sustainable business models ensure socially equitable practices and help to restore the natural resources in the ecosystem. The authors emphasised on the need for the incorporation of sustainability education in schools. Kuratko, (2016) added that sustainability education teaches the students to bring changes to the society by incorporating governance, networks, partnerships, and collaboration. According to Amran and Keat (2014), educating on the three pillars of sustainability and its importance in growth makes students wise and creative hence develop solutions through exercising creativity and innovation. Students have a sense of confidence that their actions can bring positive changes to the society. The students are able to understand the roles they have in the conservation of the environment and co-habiting with each other (Aikens, McKenzie and Vaughter 2016). On the contrary, Paul, and Shrivastava, (2015) conducted research to compare the impact of education on entrepreneurs. The authors suggested that the internal confidence an individual is born with shapes their perception of entrepreneurship. The authors suggested that the school has a minimal contribution to the innovation of an individual (Paul, and Shrivastava, 2015).
O’Byrne, Dripps, and Nicholas, (2015) expressed the three dimensions of sustainability as the planet, people and profit. The researchers emphasised that the three dimensions are not mutually exclusive but are dependent on each other. Gast, Gundolf, and Cesinger (2017) added that sustainability and entrepreneurship are two terms that highly depend on each other. Going against the demands of a single concept compromises the existence of the other two. According to Gast, Gundolf, and Cesinger (2017), over-exploitation led to adverse effects such as severe weather conditions. Climatic change is a global challenge that entrepreneurs should focus to tackle through upholding zero emission practices, proper disposal of waste, and environmental conservation initiatives. Companies are required to engage in Corporate Social Responsibility (CSR) activities so as to meet the demands of the people. O’Byrne, Dripps, and Nicholas, (2015) predicted that sustainable development is one of the factors that will determine the competitiveness and survival of businesses in the future. Therefore, the learners need to have a background theory of sustainability as they learn to solve the problems in society.
Alshehhi, Nobanee, and Khare, (2018) explained the two competing theories of sustainability that impact corporate financial performance. The two theories are ‘value-creation’ and ‘value-destroying’ and act in two opposite directions. Value-creation theory holds that the risk of a company is reduced when the stakeholders engage in environmental and socially responsible practices. Value creation, therefore, argues that engaging in sustainable practices gives the company a competitive advantage hence increased financial performance. Value-destroying theory states that the profitability of a company reduces when it engages in environmental and socially responsible practices. The value-destroying theory argues that sustainability practices seek to please the consumers at the expense of the shareholders which reduces profitability. Munoz and Cohen, (2018) explained other similar theories that illustrate the relationship between sustainability and the financial performance which include stakeholder theory, resource-based theory, and trade-off-theory. Trade-off theory predicts a detrimental impact when company’s resources are used to conduct sustainability programs. The stakeholder and resource-based theories prove the increased financial performance when engaging in sustainable initiatives. Resource-based theory holds that a firm possesses a unique ability that when strategically exploited gives the firm a competitive edge. Competitive advantage promotes the financial performance of a firm since it boosts the brand image and attracts the consumers. Meeting the environmental and social demands, therefore, has positive impacts on the financial performance of a business enterprise (Alshehhi, Nobanee, and Khare, 2018).
Kuratko (2016) analysed the challenges experienced by entrepreneurs when integrating the sustainability principles. Integration of the three pillars in ventures becomes complex for most businesses due to the conflicting demands of the dimensions. The social aspects of sustainability require flexible use of the resources towards finding solutions to the social problems. Therefore, social demands aim to create value for the society at the expense of the company which is opposite to the financial needs. Financial aspect aims to maximise profitability by reducing the production costs and other expenses. The social aspects become expensive for a company as exercising financial flexibility increases the cost of production. Kickul and Lyons (2016), explained about the conflicting demands of the environmental and financial dimensions of sustainability and suggest the methods by which the demands can be satisfied simultaneously (Kickul and Lyons, 2016). The authors recommended effective environmental management practices as it promotes the brand image and leads to production efficiency. According to Gast, Gundolf, and Cesinger ( 2017), the environmental sustainability practices are associated with increased costs of compliance. Huge expenses are associated with the modifications of the existing system in order to adopt the environmentally friendly mechanisms. The environmental demands may limit the growth of the company and reduce financial competitiveness which is detrimental to the economy. The financial dimensions support the use of technology and artificial machines in the exploitation of resources for faster productions in order to gain a competitive advantage. The technology and use of machines to enhance the economic sustainability are in accordance to the social demands such that the customer will get quality products. On the other hand, Kuratko, (2016) argued that the use of artificial intelligence in production causes harm to the environment. Therefore, there is complexity when it comes to the integration of the three pillars of dimensions simultaneously. Sustainability education help entrepreneurs solve the conflicting demands of the social, economic and environmental demands
Ben-Eli(2004) explained the five core principles underlying sustainability which are material, economic, life, social and spiritual domains. He defined sustainability as the dynamic equilibrium between the activities of the humans and the environmental carrying capacity. Material domain refers to the processes that form the basis for human existence and is guided by thermodynamic principles. The first law of thermodynamics emphasises on the conservation of energy and other natural resources in the environment. The second law requires the humans to create, maintain and increase orderliness in the exploitation of the resources (Ben-Eli, 2004). The two thermodynamic principles set the limits for productivity potential on the exploitation of natural resources according to Owusu, and Asumadu (2016). Ben-Eli (2004) recommended the policies that can be applied to ensure proper use of the available materials include controlling of leakages, recycling of non-regenerative resources, proper disposal of the waste, and striving for high resource productivity. The economic domain refers to transaction activities involved in businesses to ensure profitability. The calculation of the values should be in accordance with the social and environmental aspects. The market strategies should reflect the true cost when it comes to the allocation of capital assets (Owusu, and Asumadu, 2016).
The principle of life holds that the continued propagation of the human species has negative implications for the existence of other lives in the ecosystem. That is, overpopulation leads to the over-exploitation of the natural resources. Owusu and Asu madu (2016) stated that overpopulation leads to a high demand for the land to settle which causes deforestation. The entrepreneurial ventures should focus to maintain the existence of diverse species in the biosphere (Alshehhi, Nobanee, and Khare, 2018). Sustainability requires businesses not to exploit the resources beyond the regeneration capacity. Humanity should assume the stewardship role and take care of the bio-diversity through upholding the conservation policies. Effective land use is one of the practices that can be used to secure the bio-diversity. The social domain involves an individual maximising their full potential without affecting others negatively (Ben-Eli, 2004). Therefore, entrepreneurial ventures should foster tolerance, universal rights, social inclusion, equitable access, cooperation, and trade to meet stakeholder demands. The spiritual aspect refers to the recognition of universal ethics and exercises wisdom in practicing business decisions. The sustainability education should, therefore, be made compulsory in the curriculum as a way to nurture responsibility among the upcoming entreprenurs (Ben-Eli, 2004). The entrepreneurs should express their full potential in the exploitation of the resources without adversely or irreversibly affecting the environmental carrying capacity for the balance to be attained (Owusu, and Asumadu, 2016).
Fisher and McAdams, (2015) conducted a research to explore the effect of sustainability education to the perception of entrepreneurship. The authors explained the importance of sustainability education to students on entrepreneurship. Sustainability education makes the students recognise that the success of an entrepreneurial venture highly depends on the three dimensions of sustainability. O’Byrne, Dripps, and Nicholas (2015) recommend the strategies that should be adopted to attain sustainability. The business activities should uphold human rights policies, advocate for zero corruption and empowerment of the society. The demands of the employees should be addressed in order to create an energised team that is ready to achieve the corporate goals and objectives. The customer demands can be met through the provision of safe and quality products. According to Fisher, and McAdams, (2015), sustainability education gives the students an insight of the strategies that they should adopt to gain a competitive advantage in an entrepreneurial venture.
From the literature review, it is evident that sustainability education impacts positively on the student’s approach to entrepreneurship. The importance of sustainability education has been critically evaluated based on past literature. The literature has provided a broader dimension on the need for sustainability education in schools.
Research Methodology
The research applies the qualitative method to analyse how the sustainability education changes the student’s perception and approaches to entrepreneurship. The research will analyse how the concept of sustainability impacts entrepreneurial ventures. The qualitative approach was chosen because of the availability of secondary research materials about the topic. Primary method of data collection is ineffective for this study due to the limited time available.
Literature review provides the secondary information for this study. Data is gathered on the current perception of entrepreneurship among the students and how the sustainability education will change their approaches towards entrepreneurship. The past studies on the topic are used to support the arguments concerning sustainability education. The literatures include the articles books, journals and reliable websites that were published to provide an insight on how the past research concluded about the topic. The findings from the literature are reliable since they are peer-reviewed. Critique analysis approach is used to determine the relevance of the literature chosen for this study.
The research is an explorative case study of some of the new UK entrepreneurial ventures. The financial performance of the companies with higher sustainability and those with lower sustainability will be compared in the study. The internet sources will also be used as a tool to gather information concerning the student perception of entrepreneurship. The internet provides a suitable platform for comparison of the traditional and modern entrepreneurial ventures basing on the issue of sustainability.
Findings
The entrepreneurship students who had taken part in the sustainability courses had higher chances of engaging in sustainability initiatives in the society than those who had no previous exposure to sustainability education. Exposure to sustainability education nurtures entrepreneurs who are sensitive to the impacts of their practices. There is a difference in the perception of entrepreneurship between the student with exposure to sustainability education and those without (Fisher, and McAdams, 2015).
The literature review indicated that most students have a positive perception of entrepreneurship. Most of the students are optimistic to be innovative and come up with the solutions to societal problems. The enablers of entrepreneurship include the intrinsic motivation, self-confidence, go-getter attitudes and social interactions. The fear to fail are among the factors that lead to a negative perception of sustainability education (Aikens, McKenzie, and Vaughter 2016).
Entrepreneurship is perceived as finding the solutions to the problems in the society. Innovation emerges from the ability to think of the solutions that could bring positive change to the planet and the people. Sustainability determines the success or failure of a venture due to the sensitive nature of modern consumers on the impact of the business on the environment and the society at large (O’Byrne, Dripps, and Nicholas, 2015).
The entrepreneurial ventures that engaged in Corporate Social Responsibility (CSR) had a higher financial performance than those with low-sustainability ventures. The investors and partners are more willing to participate in ventures that have a positive relationship with the suppliers, customers, employees among other stakeholders (Kuratko, 2016). The environmental initiatives create a strong brand image for a company.
Discussions
Entrepreneurship perception
The ‘profit-first’ mentality among the entrepreneurs led to the neglect of the social and environmental aspects in the past. The negligence to sustainable initiatives led to the emergence of global warming and environmental degradation practices as the businesses only focused on the returns. However, the trend has changed and the modern entrepreneurs have a role to find the solutions to the societal problems (Morgan, 2018). The problems in the society are taken to be the foundations of entrepreneurship idea. Sustainability education programmes have been initiated in business schools to equip the students with knowledge and skills towards making sustainable business models (Lans, Blok, and Wesselink, 2014).
Sustainability education gives an insight into the entrepreneurship students on the aspect of the ‘true cost’. Most business in the past aimed to make profits at the expense of the social and environmental impacts. Basing on The True Cost Documentary by Andrew Morgan, the unsustainable business models turn out to be expensive to the humans and the environment at large (Morgan, 2018). The documentary illustrated how the fashion industry put the lives of the workers and the environment at risk. The documentary is a practical reflection of the harm that may result from negligence to sustainable models. Consuming less and smart are among the aspects that should be emphasised by the sustainability education.
Sustainability education changes student perception and approaches to entrepreneurship
Entrepreneurship coupled with sustainability education is an essential tool for creating sustainable business practices in the future. Sustainability education focuses to mitigate the poverty in the society through changing the students approaches to the entrepreneurship. The sustainability courses embedded in entrepreneurship class modifies the profit-making spirit among the entrepreneurs and increase the awareness of the environmental and social factors. Sustainability education itself focuses on meeting the present demand without compromising the needs for the future (Iyer, 2015).
Sustainability education combined with entrepreneurship skills is a relevant approach that aims to foster sustainable business ventures. Sustainability education enhances the student deeper understanding of the natural science and profit-making strategies (Maciková, et al, 2018). Students learn how to gain competitive advantages with their ventures in the modern business environment where the aspect of sustainability is no longer an option to corporates. Therefore, the approaches to innovation changes such that the ideas and creativity of the students will be based on conserving the natural resources, meeting the stakeholder demands as well achieving the shareholder expectations (Paul and Shrivastava,2015).
‘Sustainable entrepreneurship’ is a combination of the sustainability education with the entrepreneurial courses. The entrepreneurs learn to balance the manpower, raw materials, market, capital, and manufacturing methodology in order to create value (Iyer, 2015). The equilibrium must exist between the concepts for efficiency to be attained in the business. Without a sustainability background, it becomes a complex procedure to balance the aspects.
The society is more concerned on the impact of sustainability programs that the entrepreneurial venture has to the environment. The theme of sustainability dominates the modern consumers where their preference to a company is based on the contribution to the society. The stakeholder expectations are in conflict to the shareholders thus the challenge to incorporate sustainability factors in ventures (Paul, and Shrivastava,2015). The business policies and models should be made in accordance to the social, environmental and economic factors. The high financial performance is a result of meeting the social, and environmental demands in the modern business world. The environmental policies that should be integrated to achieve the environmental factors include green supply chain, energy and water conservation strategies, and carbon emission practices. Employee diversity, equal opportunities, health, work-life balance and safety for the stakeholders are among the policies for meeting the social demands. Upholding business ethics and human right movements are the strategies that can be done for the community (Iyer, 2015). Customer health and
