AS the global business landscape transforms, entrepreneurs are increasingly adopting innovative strategies to create value, ensure profitability, and promote growth.
A crucial shift is taking place – sustainability is now regarded as equally important as profitability, as highlighted by business strategist, Michael G. Edwards, in his analysis of growth and sustainability trends.
This emphasises the need for entrepreneurs, particularly those agile enough to adapt to evolving environmental dynamics.
The goal is to not only minimise adverse effects on our planet, various communities, and businesses themselves but also to actively promote the creation of long-term value and foster operational success.
Sustainability in entrepreneurship goes far beyond simply adhering to regulatory requirements or ticking boxes for compliance.
It necessitates a holistic integration of environmental and social considerations into business strategies, goals, action plans and everyday practices.
By actively implementing sustainable practices, entrepreneurs can have the opportunity to unlock a vast array of benefits that significantly enhance their success in today’s increasingly eco-conscious marketplace.
Embracing sustainability significantly enhances a company’s or brand’s reputation and resonates deeply with consumers, particularly younger and modern audiences.
These consumers increasingly prefer brands that demonstrate ethical and responsible practices in their operations and values.
A 2024 Deloitte Gen Z and Millennial Survey connected with more than 22,800 respondents in 44 countries revealed that many Generational Z and Millennials prioritise sustainability in their purchasing decisions.
The study found that Gen Zs (25 per cent) and millennials (24 per cent) have ended a relationship with a business because of unsustainable practices.
Additionally, about two-thirds of Gen Zs (64 per cent) and millennials (63 per cent) are willing to pay more for sustainable products.
This sustainability-centric trend is particularly relevant in Malaysia, where over 52 per cent of the population comprises Millennials and Generation Z.
This supports the urgency for local entrepreneurs to integrate sustainable policies into their business strategies to meet the growing demand for eco-friendly options.
As consumers increasingly seek environmentally friendly alternatives, businesses that adopt sustainability can set themselves apart in a crowded market.
This differentiation not only attracts environmentally conscious consumers but also paves the way for innovation and diversification, thus leading to the creation of new and unique product lines that can substantially boost revenues.
Several local and international success stories exemplify the positive impact of sustainability as a core entrepreneurial value.
Tanoti Craft is a remarkable social enterprise based in Sarawak that specialises in producing exquisite hand-woven textiles and fabrics, including beautiful cushions, elegant shawls and unique accessories.
The core mission of Tanoti Craft is to empower women weavers in rural areas. This empowerment is achieved by supporting and promoting the traditional art of songket weaving. Songket weaving is an intricate craft passed down through generations.
Co-founded by the passionate social entrepreneur Jacqueline Fong, Tanoti Craft initially aimed to secure employment and sustain the livelihoods of these talented artisans in rural communities.
The aim is to ensure that their vital skills and the rich cultural heritage they represent will not be lost to modernisation.
Another notable example is Batik Boutique, which aims to address poverty in Malaysia by empowering artisans from marginalised communities to create beautiful Batik, a traditional Malaysian fabric.
Batik Boutique was founded by Amy Blair with a core philosophy that women deserve a fair and sustainable income to support their families.
Adopting a holistic approach that encompasses everything from production to sales, Batik Boutique offers artisans sustainable income opportunities and skill development, fostering long-term financial independence.
On the international stage, Yvon Chouinard, founder of outdoor clothing and gear retailer Patagonia, embodies an unwavering commitment to environmental and ethical practices.
Founded to produce high-quality outdoor gear with minimal ecological impact, Patagonia upholds sustainability by utilising recycled materials and responsible sourcing.
Patagonia has pioneered organic cotton and recycled materials, significantly diminishing the environmental footprint linked to conventional manufacturing. Additionally, its ‘Worn Wear’ programme encourages the repair, reuse and recycling of clothing instead of disposal.
The implementation of sustainable practices significantly strengthens relationships with a diverse range of stakeholders, including investors, consumers, suppliers and the communities in which businesses operate.
Nowadays, many investors are increasingly mindful of Environmental, Social, and Governance (ESG) criteria when making their investment decisions, recognising that businesses demonstrating strong sustainability practices are more likely to thrive in the long run.
By clearly demonstrating a commitment to sustainability and responsible practices, entrepreneurs can greatly enhance their appeal to a growing pool of investors who are eager to support ventures that support ethical responsibility and environmental stewardship. This also cultivates strong partnerships with suppliers who emphasise sustainable sourcing and practices.
By adopting these innovative models, entrepreneurs can drive the future of sustainability in business, fostering economic resilience while addressing the pressing environmental challenges facing society today.
The commitment to sustainability is not merely a trend. It is a pathway to creating lasting value for businesses, communities and the planet.
Dr Ee Yaw Seng, School of Business, Faculty of Business, Design and Arts, Swinburne University of Technology Sarawak Campus
The views expressed here are those of the writer and do not necessarily represent the views of Sarawak Tribune. The writer can be reached at mvoon@swinburne.edu.my.
