What is sustainability? What is a sustainable enterprise?

1. SUSTAINABLE
ENTREPRENEURSHIP
Paola Di Maio, Sustainable
Innovation @ ISTCS.org
Edinburgh-San Francisco 2011

2. INTRODUCTIONS
..A SYSTEMS ANALYST, LECTURER, RESEARCHER,
CONSULTANT, THINKER, METAPHYSICIST,
ADVENTURER, SUSTAINABLE ENTREPRENEUR....
A BIT MORE ABOUT ME...
http://personal.strath.ac.uk/paola.dimaio/
AND YOU? INTRODUCE YOURSELF!

3. CONTENTS
● Aim of this Talk
● Some Definitions
● Worldview
● Sustainability and Entrepreneurship, an Oxymoron?
● Principles
● Examples
● Open Issues

4. Aims of the Talk
To introduce and discuss 'new economics' thinking
To bring alternative perspectives to classical
entrepreneurial table
To provide some triggers for future work
To have a laugh :-)

5. ON THE IMPORTANCE OF
DEFINITIONS
Lots of good thinking, and good intentions, often
produces SLOGANS for ease of communication
SLOGANS are then used by good marketers to sell
anything that makes a buck
NO DEFINITIONS = PEOPLE USE WORDS WITHOUT
UNDERSTANDING THEIR MEANING =
MANIPULATION OF GOOD THINKING AND
DEVIATION FROM GOOD INTENTIONS

6. DEFINITIONS 1. ENTREPRENEUR
the act of being an entrepreneur, which is a French word meaning "one who undertakes an endeavor". Entrepreneurs
assemble resources including innovations, finance and business acumen in an effort to transform innovations into
economic goods. ... en.wikipedia.org/wiki/Entrepreneurship
a person who has possession of a new enterprise, venture or idea and assumes significant accountability for the
inherent risks and the outcome. The term is originally a loanword from French and was first defined by the Irish
economist Richard Cantillon. ... en.wikipedia.org/wiki/ENTREPRENEURSHIP
the art or science of innovation and risk-taking for profit in business; the quality of being an entrepreneur
en.wiktionary.org/wiki/entrepreneurship
entrepreneur - someone who organizes a business venture and assumes the risk for it
wordnetweb.princeton.edu/perl/webwn
The Entrepreneur - Peter Douglas Molyneux OBE, born 5 May 1959 is an English computer game designer and game
programmer. ...en.wikipedia.org/wiki/The_Entrepreneur
One special form of human capital that is important in an economic setting is entrepreneurship (often thought of as the
fourth factor of production). Entrepreneurial abilities are needed to improve what we have and to create newgoods and
services. ...www.enotes.com/business-finance-encyclopedia/economics
entrepreneur - a risk taker in the business world. Usually applied to a person who sets up as a business owner using their
own money or an obligation on borrowed money. www.tuition.com.hk/geography/e.htm

7. DEFINITION 2. SOCIAL
ENTREPRENEUR
1. SOMEONE WHO TACKLES SOCIAL PROBLEMS
WITH ENTREPRENEURIAL SPIRIT
2. SOMEONE WHO SEES SOCIAL PROBLEMS AS
REVENUES OPPORTUNITIES AND MANAGES TO
MAKE MONEY WITHOUT EVEN SOLVING THEM
3. THE SOCIAL ENTREPRENEUR DEFINITION
MATRIX http://www.scribd.com/doc/8451734/Social-
Entrepreneurship-Definition-Matrix

8. DEFINITION 3. SUSTAINABILITY
sustainable 1610s, "bearable," from sustain + -able.
Attested from 1845 in the sense "defensible;" from 1965
with the meaning "capable of being continued at a certain
level." Sustainable growth is recorded from 1965.
Related: Sustainability (1972).
Environmental Sustainability = preservation of natural resources
Economic Sustainability = That balances economic input/output by
reducing surplus and waste
Social Sustainability = that sustains inclusion, participation,
human values and justice etc
= System Sustainability
NOTE: THE DEFINITIONS ARE PURELY NOTIONAL AND
NEED TO BE REFINED AND DEVELOPED FURTHER

9. WORLDVIEW
- Economic system is not sustainable and current rate of
consumption/waste destroying the planet
- Socio-economic systems are (partly) deviated
(theory/practice) (economy based on overconsumption
and rapid waste cycles)
- Governments, Institutions say one thing, then do
another (hypocrisy, lies, etc)
- A strong legacy system is in place to prevent organic
change (manipulation of information and control of
learning)
Source: The Growth Illusion, R Douthwaite

10. SUSTAINABLE ENTREPRENEURSHIP
... is the process of sustaining a level of entrepreneurial
development as to create a paradigm shift in economic
activity such that national GDP, job growth, capital
investment, technology advancement, and quality of life is
unmatched, unsurpassed and unequalled. I realize this seems
a bit altruistic and sounds like I am talking about Utopia.
But I am not. We can and should strive through local, state
and national efforts to seek to establish an economic
mentality that is strategically focused on entrepreneurship
and authentic organic economic growth at the community
level Sandy Graham
http://ezinearticles.com/?What-Is-Sustainable-Entrepreneurship?&id=5045492

11. ANOTHER DEFINITION
Sustainable entrepreneurship is in essence the realisation
of sustainability innovations aimed at the mass market
and providing benefit to the larger part of society. By
realising such (radical) sustainability innovations
sustainable entrepreneurs often address the unmet
demand of a larger group of stakeholders.
From:
SUSTAINABLE ENTREPRENEURSHIP AND SUSTAINABILITY INNOVATION:
CATEGORIES AND INTERACTIONS 1 Stefan Schaltegger & Marcus Wagner

13. ABUNDANCE VS SCARCITY
ABUNDANCE:
- IF WE DO NOT WASTE , THEN THERE WILL ALWAYS
BE ENOUGH TO GO AROUND
- VALUE CAN BE CREATED THAT BENEFITS ALL
STAKEHOLDERS AND DOES NOT DEPLETE RESOURCES
EXAMPLES:
- agricultural policy based on subsidies and
waste/destruction to keep the pricing up,
- monetary systems that is based on inflation
- knowledge economy that is based on IP
- energy industry that does not harness free energy (to
force the dependency on oil)

14. SUSTAINABLE BUSINESS MODEL
Example:
does not deplete resources, but replenish them
(natural resources, knowledge, human resources etc)
benefits and creates value and wealth for all
stakeholders
wealth is not intended solely as financial economic or
material assets, but also knowledge and general wellbeing
and happiness etc

15. ALTERNATIVE ECONOMIC MODELS
ZERO GROWTH
a theory that all economic activities and policies should be oriented towards
achieving a state of equilibrium, a steady state economy.
http://en.wikipedia.org/wiki/Zero_growth
BUDDHIST ECONOMICS
BUDDHIST ECONOMICS by E. F. Schumacher
"Right Livelihood" is one of the requirements of the Buddha’s Noble Eightfold
Path. It is clear, therefore, that there must be such a thing as Buddhist
economics.
http://www.smallisbeautiful.org/buddhist_economics/english.html
OTHERS?.....

16. AN OXYMORON?
OXYMORON =paradox, contradiction
A SUSTAINABLE ENTREPRENEUR CONSIDERS
- KNOWLEDGE MORE VALUABLE THAN MONEY
(and other material assets)
IS THAT REALISTIC?

17. SUSTAINABLE INDUSTRIES
Examples: REMANUFACTURING!
TT remanufacturingindustrygenerates approximately $65 billion in
sales, with the automotive segment representing $37 billion of that total.
Read more:http://webcache.googleusercontent.com/search?q=cache:
BopDVc1ZJIEJ:www.doityourself.
com/stry/remanufacturing+remanufacturing+industry&cd=6&hl=en&ct=cln
k#ixzz1C3tNYEk1

18. PRINCIPLES OF SUSTAINABILITY
● Use resources parsimoniously
● The purpose of life is not accumulation of wealth and
exploitation of resources
● Minimize consumption and waste
● Long term outcomes as important as short term
● Economic wealth is not only based on material wealth
● Knowledge is more valuable than money
● Ethics and Justice must be upheld (making profits at all
costs and by any means is uncool)
● No lies!
● ... More..?

19. EXAMPLE OF CONVENTIONAL E
http://www.context.org/ICLIB/IC32/Gilman.htm

20. EXAMPLE OF SUSTAINABLE E
http://www.context.org/ICLIB/IC32/Gilman.htm

21. MORE EXAMPLES OF SE
Tesla Motors
Kiva
InterfaceFLOR
Plugwise
Qurrent
Sustainable Dance Club.
http://sustainableentrepreneurshipguide.com/

22. CONSIDERATIONS
The economic system is what it is (not fair?) as a
reflection of how economists and investors are , how
they perceive themselves and their role in the world
But this may be changing

23. OPEN ISSUES
Is it realistic? (to expect that the world will
change)
Is it happening already? (that the world is
changing)
Has it been happening all along?
What are the alternatives within our reach to
contribute to the development of sustainable
entrepreneurship?

24. EXERCISE
1) DEVISE YOUR OWN SET OF SE PRINCIPLES
(THAT YOU CAN LIVE WITH)
2) DEVELOP A BUSINESS PLAN FOR A
SUSTAINABLE ENTERPRISE
3) LOOK FOR PARTNERS/FUNDING/BACKERS
4) REPORT THE RESULTS TO THE GROUP

25. CONCLUSIONS
SUSTAINABLE ENTREPRENEURSHIP IS PROBABLY
BEST UNDERSTOOD AND PRACTICED WITHIN THE
CONTEXT OF AN ENLIGHTENED/SPIRITUAL
WORLDWIEW THAT CONSIDERS THE PURSUIT OF
MATERIAL WEALTH A MEANS, RATHER THAN AN
END IN ITSELF
IT NEEDS TO BE PRACTICED!
IT'S ONE OF THE ONLY POSSIBLE WAYS FOR A
BETTER WORLD

26. QUESTIONS, PROJECTS, IDEAS
(AND FUNDING):
Paola.DiMaio at gmail
https://sites.google.com/site/socialenterpriseacademy