The future of business belongs to sustainable enterprises
Entrepreneurs with a vision of the future are the architects of a new business landscape. And this new economic age is just around the corner. Resilience, sustainability and value creation are the three key pillars that will distinguish the future of entrepreneurship. More than just fine-sounding concepts, in today’s connected world they are becoming a day-to-day imperative for successful businesses. Stephen Ampofo Twumasi is a Steinbeiser in Accra, Ghana. He shows how these pillars are influencing international entrepreneurship and leading to innovation and global growth.
Resilience is the foundation of modern entrepreneurship. In recent years, the COVID-19 pandemic, economic instability and geopolitical upheaval have shown that businesses are able to cope with adversity, but that they need to be adaptable in a changing world.
Tomorrow’s entrepreneurs will have to negotiate uncertain times and be agile and flexible in how they go about their business.
From a global perspective, resilient businesses must diversify their markets and supply chains in order to reduce their reliance on particular regions or nations. The COVID-19 pandemic also showed how supply chains with global manufacturers can be brought to a standstill. For instance, many businesses that relied on China to produce goods and provide services suffered badly during the pandemic. Some businesses opt for a more decentralized approach to production by relocating to regions like Southeast Asia, Africa and Latin America.
The digital transformation is also a major enabler of resilience. Resilient entrepreneurs use the available technologies to develop flexible, dynamic business models that leave them much better placed to cope with uncertain times. In other words, tools like cloud computing, artificial intelligence and data analytics strategies allow companies to respond to change immediately, keep the business going and continue to satisfy their customers, even during difficult times.
Sustainability is non-negotiable
Today, sustainability is no longer a side issue – it has become a fundamental pillar of any forward-looking business. People all over the world are increasingly losing patience with the companies responsible for phenomena like climate change, resource depletion and worsening environmental pollution. Entrepreneurs who are mindful of this in the way they run their business are not just protecting the planet – they are also creating new markets and appealing to a fast-growing segment of customers who have a very clear idea of what they want.
Innovative entrepreneurship based on sustainable principles is being seen in more and more industries around the world. Circular economy principles, for example, have transformed major industries like the fashion, electronics and automotive sectors. These industries are now making products designed to last so that they can be reused several times before eventually being fully recycled.
Doing business sustainably has also allowed companies to diversify their business. This has led to the emergence of eco-friendly companies that have become market leaders in many countries around the world. Large enterprises like Patagonia (see also the article on p. 8) and Tesla provide compelling case studies of sustainability strategies that have resulted in a competitive edge, a large customer fanbase and a strong reputation.
Stable growth must be sustainable
Cooperation between government, NGOs and businesses can improve access to finance for innovative startups. In Kenya’s EYE project, for example, various partners are working together to support young entrepreneurs by offering them affordable loans. Sustainable finance can make it easier for entrepreneurs in the agricultural sector to buy new land and acquire the skills they need to improve their efficiency, for instance. All the project partners are pursuing the shared goal of creating jobs in general and more specifically of reducing poverty among young people. The partners and project participants exchange information so that follow-up actions can build on what has already been achieved.
Lastly, access to green finance is becoming a priority for most investors around the world. It offers a competitive advantage by enabling high returns without compromising on environmental sustainability. In today’s business environment, successful companies have to be mindful of factors such as protecting society against environmental destruction, employee wellbeing, and equal treatment of their employees regardless of their social or ethnic origin.
The entrepreneurship of the future must contribute to the common good
Entrepreneurship has a great future, but it won’t be easy. Resilience, sustainable business practices and value creation are no longer optional – they are the fundamental pillars of any business that wishes to remain successful in the future, too. This realization is leading to a strong, worldwide increase in the number of entrepreneurs who are also striving to solve some of the great problems of our time.
Entrepreneurs who wish to carve out a successful future must embrace these ideals. They must use technology, global teamwork and innovation to make their businesses resilient and sustainable so that ultimately they have a profoundly positive impact on society as a whole. If they do this, they will be helping to create a more prosperous, fairer and more sustainable global economy.
Contact
Stephen Ampofo Twumasi (author)
Steinbeis Entrepreneur
Steinbeis Business Solutions Ghana Ltd. (Accra/Ghana)
227256-28