would it make a difference in the environment if only small businesses were to implement? Why or why not
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The search for competitive advantage is an ongoing quest for companies in the United States. As new technologies continue to develop at a lightning fast rate, and efficiencies are gained in all areas of production, one relatively new endeavor is becoming increasingly important: companies around the world are looking for ways to become more "sustainable."
In recent years, sustainability has become a popular topic as business leaders face hardships with the poor economy in the United States. In fact, sustainability strategies have been growing in popularity over the past several decades. Young and Tilley (2006) describe in a recent article that the 1980’s and 1990’s were decades of eco-awareness following the pollution aware decades of the 1960’s and 1970’s. Now, as companies face increasing problems in trying to achieve profitability, managers are looking for ways to decrease costs while still maintaining quality products and services. Managers are looking for ways to survive. However, mere survival skills will not give a company much hope for the future. This is where the concept of sustainability becomes important.
It is important that sustainability concepts are able to produce visible results for the companies that implement them. Without visible results, it is likely that companies will choose not to pursue these strategies. However, researchers have been able to identify ways to ensure success through sustainability. It has been found that a competitive advantage can be accomplished through a “balance between economic progress, social responsibility, and environmental protection” (Epstein, 2008). With this formula for competitive advantage, more companies will be willing to implement sustainability concepts.
With the growing popularity of sustainability, it is not surprising that the trend is also growing in popularity among entrepreneurs. According to Gibbs (2009) in his recent article, sustainability entrepreneurs are a new breed of entrepreneur that work to combine the social, economic, and environmental aspects of sustainability. These business owners are leading the trend towards successful sustainability. Using the three valuable components of the formula for competitive advantage that were defined by Gibbs (2009), these entrepreneurs are starting their companies from the ground up in a way that produces an immediate advantage in their respective industries.
Sustainability entrepreneurs have an alternative approach to doing business that also assists them in building their advantage. In common practice, the primary strategy of businesses is to do whatever it takes to earn a profit. While profit is key to the success of any business, it is not the primary concern of the sustainability entrepreneur. Instead, these business owners focus on environmental health and social concerns (Gibbs, 2009). These owners are more likely than the traditional entrepreneurs to focus on reducing their companies’ carbon footprint and keeping their employees happy.
It is common knowledge that employee happiness is essential to the long-term viability of a company. However, it is difficult to imagine a company finding long-term success using a strategy that places social concerns above all else. A recent article by Gundlach and Zivnuska (2010) addresses the topic of sustainability entrepreneurs from the standpoint of the differences in business education required for sustainability entrepreneurs versus traditional entrepreneurs. In the article, the authors point out that curriculum must be changed to suit the drive and passion of these social.