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Sustainability as an opportunity in entrepreneurship

Climate changes, transformations in society and the move towards ESG concepts will logically
cause a number of business sectors to disappear or force them to transform their business model
(a wonderful example of this is the automobile industry or the area of the circular economy, in
which, on the contrary, a number of new business opportunities are arising).

There are many motives for implementing the principles of sustainability into one’s business or
coming up with a new business concept built upon the sustainable approach. The following, for
example, can be cited:

● Financial advantages in the form of reducing costs and increasing efficiency:
Additional costs may arise while implementing a sustainable approach; nonetheless, these costs
are accepted with the aim of increasing the efficiency of entrepreneurial processes in the future.

Efficiency can then be represented by factors such as cost-saving linked to reducing employee
turnover or a decrease in future costs for creating products or improving internal processes. The
application of sustainable principles thus leads in the long-term context to lowering costs, including
a greater social effect (e.g. lowering employee turnover, a greater awareness among employees,
identification with the mission, etc.)

● Greater customer satisfaction and acquiring a competitive advantage:
The competitive advantage is strongly linked to customer loyalty. Customers in the present era
notice when the sustainable approach is being applied. Increasing pressure is being exerted not

only on energy-efficient production, but also generally on an organization’s approach with regard
to the application of sustainable principles across the organization. This not only concerns the
customer, but generally the reaction to the behavior of investors or the competition.

● Reducing risks and finding new opportunities
The sustainable approach provides new entrepreneurial opportunities and creates new areas for
business, including the creation of new jobs. Investments are usually no longer viewed as an
insurmountable barrier; their return rate and rentability can often be calculated. Application of the
sustainable approach reduces the risk of being misunderstood by stakeholders and reduces the

risk of pressure from them to apply a sustainable approach. For example, just in the area of the
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circular economy , the huge potential for the creation of new jobs is predicted. Similarly, an
organization implementing the circular approach is expected to increase the sales of its product,
expand its portfolio and improve its reputation, including lowering risks in terms of e.g. suppliers. If
closed cycles are improved, profitability may be heightened, and these organizations can even be

protected from fluctuations in the prices of resources.

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