Can sustainability, circularity and business longevity live happily ever after?
In an era where sustainability is not just a buzzword but a business imperative, understanding the intersection of entrepreneurship, circularity, and long-term business success is more crucial than ever. The shift from traditional, linear economic models to circular ones offers a pathway to sustainability that can also drive profitability and innovation. This transition, however, is not merely about adopting new business models; it's about cultivating a set of core competencies that can sustain this transformation over the long term.
Unveiling the four core competencies
In my paper, published in the Journal of Business Venturing Insights, titled "Four Core Competencies toward the Circular Economy: Insights from a Born-Sustainable Company," which I co-authored with Simone de Colle, we analyze the entrepreneurial dynamics that facilitate this pivotal shift. Through an in-depth case study of a pioneering firm that has embedded circular economy principles from its inception, we have identified four key entrepreneurial competencies essential for long-term sustainability and circularity in business operations:
Cross-Cultural Sustainability Alertness – Recognizing and integrating sustainable practices across diverse cultural landscapes to enhance global business operations.
Net Positive Regulatory Adaptation – Skillfully navigating and leveraging international regulatory environments to align with and enhance sustainability goals.
Stakeholder-driven Innovation – Crafting novel business models and solutions that not only meet market needs but advance circularity and sustainability.
Purpose-driven Ecosystem Building – Creating robust networks of partnerships that are founded on shared sustainability values and goals.
Why this research matters
For practitioners, understanding and developing these competencies are crucial. They represent more than just business skills; they are transformative forces that can redefine how businesses operate within their ecological and social environments. As the global economy continues to grapple with sustainability challenges, these competencies provide a framework for not only surviving but thriving by turning systemic challenges into opportunities for innovation and growth.
The benefits for practitioners
Adopting these competencies can lead to several tangible benefits:
Enhanced Competitive Advantage: Businesses that can adeptly incorporate circular economy principles are better positioned to meet regulatory requirements and customer expectations, setting them apart in the market.
Operational Resilience: By fostering innovation and adaptability through these competencies, companies can more effectively respond to environmental and market changes.
Long-term Viability: Companies that are built on the principles of sustainability and circularity are more likely to endure in the face of finite natural resources and growing societal demands for ethical business practices.
The insights from our research underscore the importance of these entrepreneurial competencies in driving the successful integration of sustainability and circularity into core business strategies. For business leaders and entrepreneurs, embracing these competencies is not just beneficial; it's essential for building a resilient, responsive, and responsible business that is equipped to succeed in today's complex, interconnected world.
Read the full paper to find out more: https://www.sciencedirect.com/science/article/pii/S2352673424000271
Author bio
Neri Karra Sillaman is an Entrepreneurship Expert at Saïd Business School, University of Oxford. She is the founder of a B-Corp certified leather accessories brand, now in its 25th year of operation. She earned her PhD from Cambridge Judge Business School. Her current research focuses on immigrant entrepreneurship and factors that contribute to business longevity. Neri combines academic insights with practical experience to inform her work in entrepreneurship.