So why is sustainability and Triple Bottom Line important as an opportunity for entrepreneurs?

There are multiple reasons but five key ones are:

Changing Consumer Tastes - Millennial and other consumers have higher expectations of those
they buy from now. They expect more from their products and companies who sell them.
Consumers are demanding new approaches to everything ranging from organic food to greener
buildings, more energy efficient appliances to more responsibly sourced products.

Social Media – More than ever before, entrepreneurs need to engage through technology as real-
time connections replace mass-target communications. Relationships must be built on trust and
transparency. Social media, one of the fastest growing industries, is more than a marketing tool.
It allows entrepreneurs to share their views on important issues to their core audience and
interact freely and quickly.

Supply Chain – Suppliers and corporate customers are increasingly requiring sustainable
practices from their vendors. Products are only as good as their components, raw materials,
transportation and logistics. Executives see sustainable supply chains as a direct link to long-term
profitability, value creation and opportunities to create competitive advantage in product
development and process innovation.

Financial - Many agree that building a business around TBL practices have a positive economic
impact because it, makes them more competitive, delivers greater efficiencies and sparks
innovation -- all drivers of profitability. Quantifiable are the efficiencies produced through
streamlined efforts, waste reductions and resource conservation. Less so but equally important is
the increased value to the brand and company image.

Better workplace - Many people want to work for companies that make the planet better. They
want to be part of a company that operates ethically and acts with integrity, cares about the
people it employs and makes products that enhance people's lives. Entrepreneurs respectful of
the environment and its employees will attract the caliber of people whom helps a business
expand.

Sustainable entrepreneurs introduce products and services to existing markets and develop new
consumers wanting sustainable lifestyles. Though they play a critical role in change, they
recognize that their businesses must create value for customers and investors. They ask questions
and put themselves in a position to take advantage of "sustainability" as a market. They create
opportunities to address problems around clean air, water and conservation, improving health,
more efficiently designed cities and energy efficiency

https://www.familybusiness.org/content/232-the-sustainable-entrepreneur-balancing-people-pl

Feldman, D. (2017, September 21). The sustainable entrepreneur: balancing people, planet and
profit. Entrepreneurship & Innovation Exchange. Retrieved December 28, 2019, from
https://familybusiness.org/content/232-the-sustainable-entrepreneur-balancing-people-pl
Feldman, Dave. (2017). The Sustainable Entrepreneur: Balancing People, Planet and Profit.
Entrepreneur and Innovation Exchange. 10.17919/X9J66S.

*******
Fisk, P., 2010. People planet profit: How to embrace sustainability for innovation and business
growth. Kogan Page Publishers

Sustainable entrepreneurship is a spin-off concept from sustainable

development that can be defined as the continuing commitment by business to
behave ethically and contribute to economic development while improving the
quality of life of the workforce, their families, local communities, the society
and the world at large as well as future generations.

Sustainable entrepreneurship can be defined as the continuing commitment by

businesses to behave ethically and contribute to economic development while
improving the quality of life of the workforce, their families, the local and
global community as well as future generations (World Business Council for
Sustainable Development). From a sustainable entrepreneurship perspective, a
company is a nexus of responsibilities towards the shareholders, but also
towards nature, society and future generations. When the interests of these
stakeholders are part of the decision making process in a company, we can
genuinely speak about a whole new type of a company with a new type of
operational management

The essence of sustainable entrepreneurship

Following a well known marketing principle, sustainable development is said

to deal with the 3 P’s, which stand for People, Planet, Profit. All three aspects
(including the last) have to be satisfied before an entrepreneurial activity can
be labelled as sustainable. The first aspect ‘people’ is about the behaviour of
companies in social and ethical issues. How does a company treat their
employees (or human resources) and does it promote social cohesion? The
issues that need to be adequately dealt with are the protection of human
rights, the non-indulgence towards fraud and corruption, the use of child
labour, the gender relationships and discrimination on the work floor, labour
participation in management and profits, behavioural codes and so on. While
many labour regulations were imposed in the beginning of the 20 th century by
labour and socialist movements as well as in the golden sixties, voluntary,
self-imposed systems in this area are most recent, for example SA 8000 and
AA 1000. Secondly, sustainable entrepreneurship takes care of the natural
environment. ‘We did not inherit the earth from our ancestors; the earth is on
loan from our children’, says the Indian adage that clearly summarizes
individual and corporate responsibility towards the natural environment. The
second aspect ‘planet’ raises the question of the effect and remedy of the
impact of a company on natural resources and the landscape. Environmental
care, chain management, eco-efficiency, clean products, sustainable
technology development, sustainable industry fields and eco-design are
concrete examples of these issues. The consequence for business behaviour is
that either environmental integrity becomes a business goal next to profit
seeking or that environmental protection becomes a real constraint on profit
maximization (the mathematical calculus in business optimization model
leads in both instances to same outcome). The integration of environmental
concerns into business practices is driven by both regulation (environmental
legislation) and self-regulation (ISO 14000 and so on). Finally, the third
aspect ‘profit’ does not – as one might expect - relate solely to the purely
financial results of an enterprise. Profit is also about the use and allocation of
value added for employment, investments in machines and infrastructure and
sponsoring and about the distribution (e.g. labour participation). The
definition of sustainable entrepreneurship is not a static one since the world
and the ideas that emerge are by nature dynamic. But, while the former two
aspects of sustainable entrepreneurship (which relate to the material and
immaterial contributions of dynamic corporate behaviour to nature and to
global and local communities which shape our natural and social
environment (Bos, 2002)) are subject to
4changing views on people and planet, the last aspect is the very essence of a
business enterprise. Janssen (2001) provided a list of ten ground rules for
becoming a sustainable entrepreneur: 1.The corporation should start reducing
the environmental damage, respecting human rights and treating its employees
with great care; 2.Sustainable entrepreneurship has to be a self-initiated
process and should not simply be a response to external pressure; 3.If a
corporation wants to practice sustainable entrepreneurship, it should identify
clear aims and targets; 4.The aims should be closely related to the corporation’s
practice and should match the corporate values and its primary activities; 5.The
aims have to be closely related to the consumers’ needs; 6.The corporation has
to be capable of explaining the relationship between sustainability and its
activities and production process; 7.The corporation should adhere to these
aims on a long term basis; 8.Consumers and pressure groups should have a
transparent overview of investments made by the corporation related to
sustainable entrepreneurship; 9.Sustainable entrepreneurship practiced by the
corporation should not shifted to the consumers via a price increase; and 10.A
corporation should not attempt to overemphasize its efforts. Bos (2002) added
an additional rule to the list: 11. A corporation should make sure that its
practices are shared by the corporation as a whole, and that they are not solely
efforts of the management.

The gains of sustainable entrepreneurship for SMEs

4.1. Gains for all enterprises

Bos (2002) states there are two main reasons for corporate organizations to
take into account the socio- and eco-ethical aspects of their behaviour. The
first consequence for not doing so is bad publicity. When a corporate
enterprise is perceived by the general public as unethical, this will damage its
corporate reputation, which, in turn, may result in a loss of income, profits
and share value from a conscious consumers’ boycott or unconscious bypass
of its products. It is important to remember, however, that many benefits
from sustainable entrepreneurship are being defined as costs or losses
avoided. Secondly, Bos emphasizes that idealism drives more and more
organizations that consider themselves to be more than solely profit-making
ventures. If not led by idealism, however, corporate enterprises can still
enhance their public reputation by showing respect for people and planet
instead of only for profit. Sustainable entrepreneurship gives companies an
opportunity to distinguish themselves from others. So far, the results have
been encouraging as shown by the returns on funds of companies that are
engaged in sustainable development. Examples are the RG Sustainable
Shares Fund, ABN-AMRO Sustainable World Funds and the SNS Eco
Shares funds. Also the Dow Jones Sustainability Group Index, launched in
1999, shows that sustainable companies financially outperform others. The
Dow Jones Sustainability Group Index includes the best performing
companies with regard to financial results, social and environmental
accountability.

4.2 Gains for SMEs

A general gain of adapting sustainable entrepreneurship in SMEs is the
internal dynamics that sustainable approaches introduce in the production
process and human resource management. It is likely to lead to a more bold
investment policy in both technology and personnel that will yield results in
the long run. A direct and obvious gain accrues to those SMEs that supply
their products to large companies which themselves are sustainable
entrepreneurs and require
7from their supplier to be so as well in order to be in business. Such large
companies may have a direct interest in product- and chain directed
environmental care as well ass labour conditions. SMEs that do not anticipate
to these developments and requirements, seriously risk loosing business to
small and medium-sized competitors that do or did invest in sustainable
production methods. Another argument for adopting sustainable
entrepreneurship lies in the concentration trend of big, global companies.
SMEs obviously can not compete with these international players. SMEs
should therefore focus on their surroundings, an essential part of the definition
of sustainability. Being involved in the local community may prove a
sustainability technique for SMEs that global companies will find hard to copy
which, for that reason, turn to locally well embedded SMEs. The other benefits
of sustainable entrepreneurship can be summarized as follows: -A positive
image and reputation; -Lesser dependency on depleted resources; -Higher
motivation of employees and attractiveness for new employees; -Efficient
production due to superior technologies and better skilled staff; -Superior
insight in market preferences and opportunities; -Risk control (environmental
accidents, scandals, bad publicity, etc.); -Lower burden from changes in
(environmental and social) legislation; -Corporate social responsibility; and as
mentioned before -Internal business dynamics, -Business partnerships with
other sustainable entrepreneurs, -Business partnerships with global players.
Sustainable entrepreneurship requires an ongoing dialogue between
shareholders and stakeholders. Since a healthy financial basis remains
essential, not only will shareholders have to live up to their social and
environmental responsibility, but - especially in the case of SMEs - will
stakeholders have to understand that sound financial results are essential for
the survival of the company. If not, there is no company, let alone a sustainable
one. After listing the potential gains of sustainable entrepreneurship for SME,
the key question remains: can they afford it?

SMEs face the following problems that SMEs with regard to sustainable
development (Hilton, 2000):

-Lack of resources, time and money; -Lack of capabilities, skills and

knowledge; -Lack of awareness of issues, risks, regulation; -Lack of training
needs analysis (TNA); -Lack of awareness of tools and techniques; -Lack of
awareness of provisions and their benefits; -Lack of strategic and holistic
thinking; -Lack of internal communication and integration; -Lack of work floor
staff involvement; -Lack of flexibility and fear of change; -Lack of external
communication (networking); and -Mistrust of other companies in groups.

Crals, E. and Vereeck, L., 2004, February. Sustainable entrepreneurship in SMEs: theory and
practice. In 3rd Global Conference in Environmental Justice and Global Citizenship, Copenhagen,
Denmark.

https://pdfs.semanticscholar.org/b5ad/87fda44bd4dadbd2a6218b24d8fe86e24ff1.pdf
Entrepreneurship typically focuses on identifying opportunities for creating value for
customers, ultimately yielding a profit for the founders and investors. Entrepreneurship
courses and texts share this focus. Sustainability entrepreneurship takes a slightly different
perspective, however, by emphasizing the additional goal of promoting sustainable living, in
terms of social equity and environmental improvement. From an entrepreneurial perspective,
such an emphasis presents opportunities in the form of innovative products, services, and
production processes that alleviate social or environmental conditions, make more efficient
use of energy and natural resources, and harness renewable resources that save costs, lower
risks, and are less harmful to society in the long-run.

Sustainability entrepreneurship (SE) takes a slightly different perspective from the

traditional focus of entrepreneurship by emphasizing additional goals of promoting
sustainable living and environmental improvement. An emphasis on sustainability
within entrepreneurship involves searching for opportunities for new products or
services or new technologies or production processes that alleviate social or
environmental conditions, make more efficient use of energy and natural resources, and
harness new resources that are more abundant, cheaper to produce, and less harmful to
society. From an entrepreneurial perspective, such an emphasis presents opportunities
in the form of innovative production processes, cost savings, lower risks, and the
potential to tackle the world’s critical problems

SE can be regarded as involving the three Ps: people, planet, and profit (Crals and
Vereeck nd). The first aspect, people, refers to an enterprise’s treatment of its
workforce, the protection of human rights, guarding against child labor and imposing
self-restraint in desisting from following unethical labor practices. It might include
creating jobs, which is a laudable goal but cannot be undertaken without simultaneously
considering its impact on the third P, profit. The second aspect refers to the impact of
the company on natural resources and the environment. Protecting the ecosystem is
integral to an SE perspective in terms of becoming a major goal (alongside profit-
making) for a company or a criterion for evaluating strategy. Thus, SE may be regarded
as a process that creates enterprises that “can be contributory and restorative in their
interactions with human and ecological systems” (Tilley 2007). The third aspect, profit,
is the essence of a business enterprise. When broadly defined, profit relates not just to
the financial returns of the enterprise, but to the allocation of the financial returns
between investment in machines, infrastructure, R&D and other uses, and the
distribution of the gains between those involved in the entrepreneurial process. The
concept of SE is dynamic in the sense that the chief concerns regarding people and the
ecosystem are likely to evolve over time. It could be argued that the first generation of
companies practicing SE focused on employing processes that saved money while the
second generation has focused on new ventures that make new products that contribute
to enhancing sustainability.

https://s3.amazonaws.com/academia.edu.documents/43528427/A_New_Course_on_Sustaina
ble_Entrepreneur20160308-6022-697k69.pdf?response-content-
disposition=inline%3B%20filename%3DA_New_Course_on_Sustainable_Entrepreneur.pdf
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Basu, A., Osland, A. and Solt, M., 2008. A new course on sustainability entrepreneurship. In
VentureWell. Proceedings of Open, the Annual Conference (p. 71). National Collegiate Inventors
& Innovators Alliance.

Assuming that sustainable entrepreneurship leads to business performance, the present

paper intends to investigate the standpoints of SMEs (small and medium-sized enterprises)
entrepreneurs on different facets. The emphasis is laid on the entrepreneurs’ approaches towards
people, planet and profit and on their prioritization within business dynamics. The aforementioned
dimensions are deemed important factors engendering business performance in terms of turnover,
customer attraction and retention and market share.
https://www.mdpi.com/2071-1050/8/4/342

Soto-Acosta, P., Cismaru, D.M., Vătămănescu, E.M. and Ciochină, R., 2016. Sustainable
entrepreneurship in SMEs: A business performance perspective. Sustainability, 8(4), p.342.

Moreover, as mentioned by Pacheco et al. (2010), literature on welfare

economics has also concluded that entrepreneurial activities actually
contribute to environmental degradation.Specifically, environmental
discontinuities such as pollution, land degradation and climate
changeare examplesof effects from entrepreneurial activities in the
society(Chick, 2009).

One of the significant works that used TBL to explain SEwas done by
Dixon and Clifford (2007). Although the word “ecopreneurship”was
used, it actually carried the meaning of “sustainable entrepreneurship”.
The authors developed a model based on the trinity of social,
environmental and economic to examine whether the entrepreneurs
could operate an economically viable venture whilst retaining their
environmental and social values. They conclude balancing among the
three aspects of social, environmental and economicremains as the
main challenge for most businesses.

http://hrmars.com/admin/pics/855.pdf

Majid, I.A. and Koe, W.L., 2012. Sustainable entrepreneurship (SE): A revised model based on
triple bottom line (TBL). International Journal of Academic Research in Business and Social
Sciences, 2(6), p.293.
People, profit, and planet are reliant on one another. Under this new standard, we avoid undesirable
outcomes that could hurt us and our environment now and later, and entrepreneurs need to be
cognizant of these barriers when considering in what direction to grow a company

https://www.kauffman.org/currents/2015/05/can-entrepreneurship-solve-environmental-and-
social-issues

The entrepreneurial community has long prided itself on a working philosophy based on purpose
over profits. With sustainability becoming a more prevalent part of economies as a whole,
individual businesses have had to focus greater attention on striking a balance between returns to
people, planet and profits.

https://www.futurpreneur.ca/en/2016/people-planet-and-profit/

2.2.1 Three Dimensions of SustainabilityThis next section will analyse

the important 3Ps, which make up the TBL –People, Planet and Profit. To
remain viable, businesses and companies must now incorporate and pay
greater attention to these 3P’s. They effectively measure and capture an
entities ecological, economic and societal values (Langdon, 2010). Each P
will be briefly explained and its connection to the TBL. PeopleIt is
imperative for a sustainable business to value its workforce -hiring,
developing and training the ‘right’ people that complement the business
initiative. People reflect the behaviour of the business, in both social and
ethical issues; human resource management is critical to this. A TBL entity
implements good working conditions towards labour and the surrounding
community in which it conducts operations. Reciprocal social structures
arean important element within the TBL. The “up streaming” of profits back
to the original producer encourages further business and trust. It is
fundamental for workers to feel a sense of ownership and responsibility for
their work. A TBL entity does not disadvantage, endanger or exploit any
constituencies. A TBL business would never exploit children, and would
monitor supplier and contractors labour practices, ensuring they are
appropriate while maintaining an acceptable standard that does not seek to
exploit or take advantage of any person’s situation. Fair salaries, tolerable
working hours and conditions are the basics that must be benchmarked at
an appropriate level. Furthermore, the continuous investment into staff is
very important. Support in health care, insurance and training programs
proposes a learning environment.
5PlanetSustainability is crucial to the planet’s longevity. If it is not already
obvious, it is time for businesses to realise that unsustainable practices run
the risk of losing their people –both employees and customers –and profit
(Langdon, 2010). A TBL entity strives to benefit the natural order, or at least
do no harm to the environment, and endeavours to eliminate their
environmental (ecological) footprint as much as possible. Moreover, a TBL
initiative does not conduct business operations nor produce harmful or
destructive products –it considers the natural environment and biodiversity.
Crals and Vereeck (2005, p.174) explain, “Environmental care, chain
management, eco-efficiency, clean products, sustainable technology
development, sustainable industry fields and eco-design are concrete
examples of these issues”. Businesses that adopt a mission to protect the
environment face a profit maximisation dilemma. Entities that fully integrate
environmental consciousness essentially align their profit strategy with
environmental protection initiatives. In contrast, these initiatives reduce profit
maximisation; the business is constrained by the adoption of environmental
integration efforts. Government regulation/ legislation and the individual’s
self-regulation have direct impact in the result of profit outcomes.ProfitThe
computation of the TBL economic value differs to the traditional corporate
accounting profit measure. Profit is the economic value created by the
organisation after deducting the costs of all inputs, including the cost of the
capital tied up. While it is this traditional understanding of profit that enabled
a starting point for the computation of TBL economic value, theTBL
calculation of the sustainability framework encompasses the ‘real’ economic
benefit enjoyed by the host society. Therefore, the TBL economic approach
must account for other entities ‘profits’ which must be understood as social
benefits.

http://www.diva-portal.org/smash/get/diva2:536383/fulltext02

Corporate Social Responsibility is Everyone's Job

Many analyses of the 2007 financial crisis reflect an overall focus on corporate social
responsibility even if the crisis itself reflected a lack of responsibility. Many experts and scholars
talked not about how many of the mammoth banks that taxpayers bailed out failed but rather how
they failed society. "Business should have had some inherent responsibility to take care of the
economy and it didn't," Stetar said. "They not only failed as businesses and the people and
shareholders that owned them, they failed society in general."

Corporate social responsibility has something of a misnomer, Stetar said. When experts began
thinking about ways businesses should consider more angles than how much money they make,
it was thought only giant corporations could impact the communities, states and regions they
profited from. "We now realize that every company no matter how big or small they are has a
responsibility to the socioeconomic environment in the society in which they exist," Stetar said.
It's now often called simply social responsibility or responsible business and in the wake of the
Great Recession more focus is being put on its principles.

While many colleges and universities previously offered degrees in corporate social
responsibility, and some still do, the discipline is more and more integrated into all aspects of an
overall business education. Some programs reflect that by writing their business curriculums so
the principles of corporate social responsibility are an interwoven theme in all MBA courses
because employers expect all of their employees to understand the foundations of philosophy and
make decisions with the business's social responsibilities in mind. "Nothing stands alone," Stetar
said. "Every decision you make as a business has an impact on society, the socioeconomic
environment around it."

Corporations Are Responsible for the Environment, Too

Much, but by no means all, of the considerations a corporate socially responsible business has to
consider concern the environment. "A positive impact should be made to the elimination of
waste, turning waste into usable resources, an adequate supply of clean water, energy efficiency,
and generally contributing to a green market. In today's environment, business should align and
balance their profit motive with contributions to the environment and society," Jenkins said.
"People and planet are a priority in the profit equation for business. Business has to realize that
profits are achievable in conjunction with preserving the planet and ethically serving people."

the balance of the triple bottom line is like an enormous conglomeration of seesaws on an infinity
of axes and touching one can have consequences in far flung regions of the business and
community.

https://www.snhu.edu/about-us/newsroom/2016/11/people-planet-profit-the-triple-bottom-line

. Each and every day CEOs across the world face numerous decisions, and sustainability is just
one in a long list of priorities. Few will simply admit that they don’t care, although it is clear from
interviews conducted with them that many will only go as far as the customers demand, or only
make environmentally positive decisions if they also reduce costs.

https://www.theguardian.com/environment/2018/sep/07/profits-v-planet-can-big-business-and-
the-environment-get-along

EcoNautics Sustainability Institute (ESI) finds that companies that promote sustainability at the
executive level see a number of economic benefits. By eliminating waste, reducing resource use,
avoiding regulatory issues, enhancing customer loyalty, and achieving competitive differentiation,
sustainable companies see long-term economic benefits by reducing costs, increasing resilience,
and promoting their brand.
The Outlook

Customers and consumers will increasingly be well informed about the adverse social and
environmental impacts of business activities, and they will be demanding change, including
lobbying for regulatory reform. Extended Producer Responsibility, which would require
electronics manufacturers to ensure sound disposal of e-waste generated by their products, has
found its way onto the legislative agendas of local and national governments. Certification and
labeling standards will become more common, clamping down on false advertising of green
products. Supply chain disruptions and constraints on resources such as freshwater supplies
caused by climate change will increasingly reward sustainable companies.

https://www.supplychainbrain.com/articles/15666-balancing-the-triple-bottom-line-of-people-
planet-and-profits
https://emagazine.com/csr-small-business/

Incorporating social good into a business model has always been laudable, but it’s especially
important as Millennials reach the height of their spending power. Almost half of Millennials are
willing to make a purchase to support a cause, and over half will pay more for environmentally
sustainable products. In addition, 94 percent of Millennials want an opportunity to use their skills
to help a cause, meaning you’ll have better luck recruiting them as team members if your
business makes a positive difference.

These statistics illustrate that social good and profitability are no longer mutually exclusive, and
the most effective companies pursue both. According to Deloitte’s “2018 Global Human Capital
Trends” report, business leaders around the globe are facing a significant shift in priorities.
Today’s organizations are no longer judged strictly on their financial performance but also on
their treatment of employees and customers and their contributions to the communities they
serve.

As a result, top companies are adopting a triple bottom-line approach that prioritizes people and
the planet in addition to profit. This change in priorities is by no means purely altruistic. Instead,
it’s a matter of meeting customer demands and rising above the competition. Many entrepreneurs
are following suit.

A triple bottom-line approach that prioritizes social impact is no longer a luxury for many
businesses. Today, it has become a competitive differentiator, and in response, entrepreneurs are
coming up with creative ways to give back to their communities. As evidenced by the experiences
of these entrepreneurs, making a difference and making a profit go hand-in-hand — in fact, it’s
difficult to have one without the other.

https://www.forbes.com/sites/rhettpower/2018/09/16/heres-how-to-balance-profitability-and-
social-good/#75c154353e91

Sustainable development hinges on a combined focus of its impact on society (people),

the environment (planet) and to its economic value (profit). Increasingly, it is being
recognized that these people, profit and planet dimensions are interlinked and an
important challenge for public and private policy is to take them jointly into account.
This inter-linkage is particularly evident in international channels that build on scarce
natural resources from developing countries, which is the focus of this thesis.

https://edepot.wur.nl/121878