…but is that enough to become an entrepreneur in today’s reality?
The last decade has seen a lot of change, driven among other things by the emergence of platforms like Instagram, TikTok and Netflix. These platforms have transformed the way that consumers interact with content and brands. But they have also fundamentally altered the business landscape by offering new channels and opportunities that allow brands to reach their target groups in previously unimaginable ways. And just when businesses were getting used to the new ways of approaching customers and marketing based on rapid, bite-sized content creation, along comes artificial intelligence with a whole new set of challenges. The world is currently in the throes of a paradigm shift brought about by new AI tools and technologies like ChatGPT, Google Gemini and many more. Ideas, innovations and capabilities that used to take years to develop are now just a mouse click away – as long as the companies mentioned above deign to grant permission. But Vineet Kumar Goyal, a Steinbeiser in Hyderabad, India, argues that this also means there is a lot more to successful entrepreneurship today than simply having a great idea.
The emergence of social media platforms and AI-driven recommendation algorithms has changed how consumers interact with and perceive content and brands. Today’s consumers are no longer only interested in a brand’s product or service – they also want to know whether it is environmentally and socially responsible and committed to ethical procurement.
How do you build a brand that will stand the test of time in the face of such huge changes in the business landscape? Let’s take a look at a brand that has made a real name for itself through the way it handles these challenges: Patagonia.
Sustainable outdoor gear provides best practice example
US outdoor clothing and equipment provider Patagonia was founded in 1973. But despite being over 50 years old, the company has been quick to adapt to the new global order of recent years. It now has over 5.4 million followers on Instagram. And in 2010, it changed its mission statement to “We’re in business to save our home planet” [1], striking a chord with millions of consumers who want to support sustainable businesses. By focusing on the latest trends and appealing to consumers’ humanity, the company was able to increase its sales from 450 million to approximately one billion dollars between 2008 and 2019 [2].
Can entrepreneurs use this as a blueprint for building their own successful business? Yes and no. While Patagonia’s focus on sustainability and customer loyalty can provide useful guidance for entrepreneurs, it should not be copied blindly. The key is to find out what consumers want and then take the relevant actions and decisions without delay. Entrepreneurship is no longer just about ideas and innovation. A genuinely resilient business must have an in-depth understanding of the new norms in today’s world, the ability to adapt to sudden changes, and an edge over the competition.
Focusing on sustainability opens up new business opportunities
Today’s entrepreneurs have to do much more than merely concern themselves with their profit and loss accounts. They need to build a brand that reflects the interests of their different stakeholders – the environment, society, employees, investors, government and future generations. You can’t build a resilient business in today’s world without looking after all your stakeholders. Interestingly, the indirect benefits of a sustainable product often create new business opportunities for others, in the following ways:
- Supply chain innovation: When companies introduce sustainable practices, this often leads to innovations in their supply chains. When Patagonia switched to usingrecycled, organic materials, for example, it boosted demand for organic fabric suppliers and created opportunities for new businesses to meet this demand.
- New market segments: The fact that more and more companies are turning their attention to sustainability is creating demand for new government regulations, specialist services such as carbon footprint analysis, environmentally-friendly packaging solutions, energy-efficient technologies and much more besides. This means there is an opportunity to establish startups and small businesses.
- Waste management innovations: When companies focus on sustainability, they often develop new waste management processes. This creates opportunities for potential entrepreneurs who specialize in areas like waste reduction and recycling technology to start a business and leverage this demand.
These opportunities clearly demonstrate that sustainable practices in industrial processes and the development of sustainable, environmentally-friendly products aren’t just good for the planet. They also enable the growth of associated industries, drive innovation and create opportunities to build new businesses.When all is said and done, entrepreneurship today is much more than the traditional definition in the Oxford English Dictionary, where it is described as the activity of making money by starting or running businesses, especially when this involves taking financial risks [3]. In the future, the term will increasingly embrace a wider responsibility toward different stakeholder groups that constantly evolves and involves taking financial risks in the pursuit of profit.
Contact
Vineet Kumar Goyal (author)
Steinbeis Entrepreneur
Steinbeis Centre for Technology Transfer India (Hyderabad/IND)
www.steinbeisindia.com