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Paper Number: ICHUSO-115
Proceedings of 14th International Conference on Humanities and Social Sciences 2018 (IC-HUSO 2018)
22nd-23rd November 2018, Faculty of Humanities and Social Sciences, Khon Kaen University, Thailand
Sustainable Entrepreneurship: An Emerging Pattern for Entrepreneurship
Nguyen Van Dai1, Nguyen Q. Anh2 and Trinh Mai Van3
1,3 National Economics University, Vietnam
2 Vietnam National University, Vietnam 1 E-mail: dainv@neu.edu.vn, 2 E-mail: anhnq999@gmail.com, anh_nq@vnu.edu.vn,
3 E-mail: trinhmaivan@gmail.com
Abstract
This article discusses recent scholarly research that bridges two fields of the
sustainable development and entrepreneurship, namely “sustainable entrepreneurship”,
with also highlighting existing theoretical framework to study the field. It also aims to
illustrate the new emerging trend regarding sustainable entrepreneurship in contemporary
Vietnam.
Keywords: Corporate Social Responsibility, Entrepreneurship, Sustainable Development,
Sustainable Entrepreneurship
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Paper Number: ICHUSO-115
Proceedings of 14th International Conference on Humanities and Social Sciences 2018 (IC-HUSO 2018)
22nd-23rd November 2018, Faculty of Humanities and Social Sciences, Khon Kaen University, Thailand
1. Introduction The role of business in society has been more perceived by public perception as well
as the enterprises per se. Enterprises not only focus on their profit-maximizing process, but also
launch different activities that contribute to tackling social and environmental issues. The
evolution in the enterprises’ behaviors and concerns partly results from global challenges of our
time such as global warming, climate change, ecosystem degradation, poverty and
impoverishment, threatening the life at all levels (Smith, 2003; Carroll and Shabana, 2010).
Since 1990s, responsibilities regarding environmental and social factors other than
pursuit of profit-making have appeared in business decision making of enterprises of any size
(Del Baldo, 2014). Dynamics of innovation process and job creation are boosted through
entrepreneurship (OECD, 2011). Entrepreneurs and their enterprises may play a critical role in
strengthening the sustainability of economic-commercial ecosystem. Of which are the SMEs
(small and medium sized enterprises) whose interest in sustainability in doing business will, in
turn, contribute to sustaining community and society as a whole.
The term ‘green entrepreneur’ is used as a way to feature start-ups on the basis of
sustainability towards natural environment (Allen & Malin, 2008; Farinelli, Bottini, & Akkoyunlu,
2011; OECD, 2011; Walton & Kirkwood, 2010). In the context of transition economies, it is still
strange to or, at least, under-researched by academia despite the fact that enterprises towards
sustainability are playing more and more important roles in meeting the growing needs in terms
of job opportunities, especially for marginalized people as well as community-based benefits and
environmental aspects (Kronenberg & Bergier, 2012). Green entrepreneurship in Bosnia and
Herzegovina, for instance, successfully shows lesson learnt for other countries in transition
through success stories of start-up activities based on community-based resources and benefits
(Silajdžić, Kurtagić, & Vučijak, 2015)
It is safe to say that sustainable entrepreneurship is not a new but emerging
phenomenon across the globe in which it targets a closer link between enterprises’ economic goal
and their social and environmental impacts (Zu, 2014). Sustainable entrepreneurship is
“characterized by some fundamental aspects of entrepreneurial activities which are less oriented
towards management systems or technical procedures, and focus more on the personal initiative
and skills of the entrepreneurial person or team to realize large-scale market success and societal
change with environmental or societal innovations” (Schaltegger & Wagner, 2011). Accordingly,
beyond the scope and level of previously researched terms related to entrepreneurship, sustainable
entrepreneurship are defined as a process in which business opportunities (ventures) are
discovered through the contribution to such 3 pillars of sustainable development as economic,
social and environmental impacts (Schaltegger & Wagner, 2011; Young & Tilley, 2006)
Research objectives
Objectives of the paper are presented as two fords: Firstly, it aims to review a concept
that bridges two fields of the sustainable development and entrepreneurship, with also providing
the theoretical framework to study “sustainable entrepreneurship”. Secondly, two case studies are
analyzed to illustrate the new emerging trend in entrepreneurship in Vietnam.
Theoretical framework
Each form of sustainability-oriented entrepreneurship is different from others due to
ultimate goal, means and motivation entrepreneurs pursue and the pattern each type of
sustainability-oriented entrepreneurship follows to have impacts on social/environmental
conditions.
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Paper Number: ICHUSO-115
Proceedings of 14th International Conference on Humanities and Social Sciences 2018 (IC-HUSO 2018)
22nd-23rd November 2018, Faculty of Humanities and Social Sciences, Khon Kaen University, Thailand
Table 01: Characterization of different kinds of sustainability-oriented entrepreneurship
Ecopreneurship Social
entrepreneurship
Institutional
entrepreneurship
Sustainable
entrepreneurship
Core
motivation
Contribute to
solving
environmental
problem and
create economic
value
Contribute to
solving societal
problem and
create value for
society
Contribute to
changing
regulatory,
societal and
market institutions
Contribute to
solving societal
and
environmental
problems through
the realization of
a successful
business
Main goal
Earn money by
solving
environmental
problems
Achieve societal
goal and secure
funding to achieve
this
Changing
institutions as
direct goal
Creating
sustainable
development
through
entrepreneurial
corporate
activities
Role of
economic
goals
Ends Means Means or ends Means and ends
Role of non-
market goals
Environmental
issues as
integrated core
element
Societal goals
as ends
Changing
institutions as core
element
Core element of
integrated end to
contribute to
sustainable
development
Organization
development
challenge
From focus on
environmental
issues to
integrating
economic issues
From focus on
societal issues to
integrating
economic issues
From changing
institutions to
integrating
sustainability
From small
contribution to
large contribution
to sustainable
development
Source: Schaltegger & Wagner, 2011
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Paper Number: ICHUSO-115
Proceedings of 14th International Conference on Humanities and Social Sciences 2018 (IC-HUSO 2018)
22nd-23rd November 2018, Faculty of Humanities and Social Sciences, Khon Kaen University, Thailand
There exist differences among types of entrepreneurship with which entrepreneurs set
up a number of business conditions and goals at the beginning and throughout their business
activities. Sustainable entrepreneurship is the most holistic form that attempts to tackle the
problems outside the direct sphere of enterprises. (Schaltegger & Wagner, 2011)
Figure 01: Model of sustainable entrepreneurship
Source: Young & Tilley (2006)
Building on the model introduced by Dyllick & Hockerts (2002), Young & Tilley
(2006) created a more comprehensive model of that focuses on 3 criteria of sustainable
entrepreneurship. The advancement of this model can be presented through the introduction of
‘sustainable entrepreneurship’ component. The pole of ‘sustainable entrepreneurship’ is achieved
by satisfying all other sub-poles of economic, social and environmental entrepreneurship in which
each one has its own sub-criteria to meet. In other words, it cannot gain sustainable
entrepreneurship only by pursuing either of the above poles. Sustainable entrepreneurship is
considered a ‘means’ for sustainable development that derives from entrepreneurial perspective.
More clearly, the relationships between sustainable entrepreneurship are described as
follows:
Firstly, the link between sustainable entrepreneurship and environmental sustainability
is reflected in both ways in which on the one hand, business activities do not place more burden on
environment and on the other hand, environmental sustainability needs to be strategically included
in enterprises’ decision-making process.
Secondly, inter-generational economic benefits, including welfare of the current
generation and prosperity of future generations, need to be taken into account in business strategy
of enterprises.
Thirdly, sustainable entrepreneurship takes into consideration for (i) social
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Paper Number: ICHUSO-115
Proceedings of 14th International Conference on Humanities and Social Sciences 2018 (IC-HUSO 2018)
22nd-23rd November 2018, Faculty of Humanities and Social Sciences, Khon Kaen University, Thailand
responsibility that requires that all effects on community and more broadly, society and
environment, positive or negative, have to be reflected through enterprises’ business strategy and
(ii) social well-being of future generations (also known as futurity) is necessarily included in
enterprises’ pursuit.
2. Methodology
This study is built on the key concepts review combining application of a case study
approach in which the latter helps make a case for a new promising emerging trend in
entrepreneurship in Vietnam.
Data collection methods
The desk study is based on secondary data from various sources, which will be described as
follows:
Reports
Data related to business activities/results of two selected enterprises released on their
websites
3. Results
Table 02: Brief Description of Enterprises
Mekongplus Co. Ltd EcoLink Co. Ltd
Introduction Founded in 1994, Mekong
Quilts is seen as a ‘social
enterprise' by itself towards
local community-based
benefits on the basis of local
community’s female
participation.
Ecolink Co. Ltd., have been set up in August
2004 by a group of traders and development
consultant, with the purpose of promoting
organic and fair-trade agriculture as a
differentiated way of branding Vietnamese
tea internationally, and to increase the
awareness and consumption of organic
products domestically.
Vision Develop in a way that brings
out sustainable employment
into poor women.
To be a reliable producer in organic and fair
trade food industry in Vietnam and
worldwide.
Mission Create sustainable
employment for under-
privileged women in remote
and rural areas of Vietnam and
Cambodia.
Improve quality of life reaching from upland
ethnic minority farmers to our end
consumers
By building up supply chains of certified
organic and fair trade Vietnamese natural
tea/herbal/spices
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Paper Number: ICHUSO-115
Proceedings of 14th International Conference on Humanities and Social Sciences 2018 (IC-HUSO 2018)
22nd-23rd November 2018, Faculty of Humanities and Social Sciences, Khon Kaen University, Thailand
- Improve societal welfare of
local community.
Business
model
- Growing local material
- Creating patchwork,
piecing and intricate
stitch details by
handcrafting
techniques and selling
handcrafted products to
target customers of
tourists
Farming
Processing
Marketing
Sales and Distribution
Source: British Council, CIEM, & NEU, 2016
Table 03: Description of 3 sustainability poles
Mekongplus Co. Ltd EcoLink Co. Ltd
Economic
perspective
Offering economic opportunity
for rural women through job
creation.
Microcredit provision.
High-quality unique products
ensure a stable and high price
Providing consultancy service for
Vietnam organic industry.
Trading/exporting green tea and black
tea in international market.
Job creation for thousands of local
people.
Social
perspective Poverty reduction in local
communities
All profit generated from
business activities will go back
to serve the community's
benefit including children
education, health and hygiene
advancements
Till 2016, EcoLink Co. Ltd has set up
various farmer groups; recruited 800
local farmers households, while 80%
of those being within ethnic minority
groups in Northern Vietnam
Capacity building for local farmers
through technical training courses
As committed, 7-15% of total annual
profit made by EcoLink will go back
to serve farmers’ benefit
Environmental
perspective
Providing training sessions of
agriculture farming techniques
Using local environment-
friendly materials (bamboo,
Using environment- friendly, bio-
organic fertilizer and insecticide for
farming.
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Paper Number: ICHUSO-115
Proceedings of 14th International Conference on Humanities and Social Sciences 2018 (IC-HUSO 2018)
22nd-23rd November 2018, Faculty of Humanities and Social Sciences, Khon Kaen University, Thailand
water hyacinth and papier
Mache
Sources: Synthesized by authors
On the economic side, the point in common of these enterprises is job creation for local
groups/residents focusing more on the poor or poor women. Job creation is made through the
livelihood-introducing and training activities funded by the enterprises. Further, these two
enterprises have attempted to ensure its economic purposes to serve the business operation.
For the social pole, these enterprises significantly help to improve income and thus
substantially reduce poverty via stable employment generation. Additional social values, created
through local participation of ethnic groups living in mountainous areas, are mentioned in the case
of ECOLINK. In addition, education and health care training activities provided by Mekong Plus
benefit local people by improving knowledge and physical health status that lead to a long-term
effect in local community’s life.
The environmental protection is also clear because they use local raw materials in an
environment-friendly way. Less chemical fertilizer or insecticide is expected to minimize the
negative effects on ecosystem. Also, training provision of agricultural techniques towards
protecting the environment have positive impacts on natural environment in an indirect way.
In short, these enterprises are the good examples of ensuring all three poles of
sustainability at the same time. In other words, that demonstrates that the sustainability of the
business journey from start-up to the current situation may contribute to ensuring the sustainability
of all three sustainability pillars in sustainable development.
4. Discussion and Conclusion
According to Nguyen et al. (2012) and Nguyen et al. (2018), social enterprises have
been developing, even before Vietnam’s economic Reform in 1986. The characteristics of social
enterprise in Vietnam have embedded in various forms ranging from women union, associations of
people with disabilities, community-based groups for disadvantaged children. More recently, a
number of social enterprises in Vietnam have transformed into a new emerging form that is featured
with core-value creation towards environment, more community-based ownership-sharing
participation.
Purely
profit <-------------------------------------------------------------------------------> Purely
social
benefit
Traditional
enterprises
Enterprises
with CSR
Social
enterprises
Income
generating
unit inside
NGO
Traditional
NGO
Source: British Center for Social Enterprise
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Paper Number: ICHUSO-115
Proceedings of 14th International Conference on Humanities and Social Sciences 2018 (IC-HUSO 2018)
22nd-23rd November 2018, Faculty of Humanities and Social Sciences, Khon Kaen University, Thailand
Distinguished from other forms of entrepreneurship, sustainable entrepreneurship has
been emerging as a fertile ground for entrepreneurs to discover the business opportunities. In
Vietnamese context where the majority of enterprises that are categorized as one of the forms of
social enterprise, social-responsibility enterprises, and so on, ECOLINK and Mekong Plus are the
good cases that provide strong evidence of an emerging business model for entrepreneurs to learn
and apply. Sustainable entrepreneurship lies in the strongly interactive relationship between
selected enterprises per se and the community. In a wider perspective, sustainability of
entrepreneurship is built on the basis of meeting all 3 social, economic and environmental
standards. Again, sustainable development is achieved through the values that enterprises create
and also the critical factors enterprises make good use of.
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