What are the Characteristics of Successful Sustainable Ventures?

According to a report by European Commission, 1 out of 4 new enterprises set-up every year are social enterprises.

For entrepreneurs who want to create a business around a core value or cause, sustainable ventures are the way to go. A sustainable venture is one that promotes positive social and environmental change while creating profit.

As such, these businesses are ideal for those who want to make money while doing good, as well as those who want to create an impact on the world around them.

In this article, we’ll look at some of the characteristics of successful sustainable ventures so you can create your own business with a similar mission in mind.

1. Collaboration with stakeholders is key

Successful sustainable ventures are built on partnerships. The success of these businesses is often measured by the impact they’ve had on their partners, as well as the world around them.

Because of this, successful sustainable ventures invest a lot of time working with those who are most affected by their cause.

This includes stakeholders such as government officials and businesses, as well as the general public. Partnerships with stakeholders can help a sustainable venture gain influence and influence others, which can be key to success.

2. Real-world impact is essential

Sustainable ventures must not only provide a positive social and environmental impact, but also a real-world impact. Successful sustainable ventures are more than just businesses, they are real-world impact platforms.

This means that the businesses’ social and environmental impact is measured against a real-world benchmark.

Successful sustainable ventures are doing the right thing by participants, customers, and the world around them. These ventures are on mission to solve world problems like inequality and hunger at massive scale.

Successful sustainable businesses are creating real-world impact through their products, services, and business practices. This should be directly translated into their mission and day-to-day efforts including communications with their stakeholders.

3. Transparency is crucial

Businesses driven by a cause must be transparent in order to be successful. This means the ventures are open about their activities with the general public, government officials, and other stakeholders.

Successful sustainable ventures are transparent about their activities and decision-making, which allows for greater trust and collaboration between all parties involved. They are probably going an extra mile when it comes to openness and transparency of their activities and partners they pick (think about the Fair Trade Concept) compared with purely commercial entrepreneurs.

This also means they are open to hear critiques and deal with complains about their approaches whenever possible.

Transparency is a sign of integrity, which is a key part of being successful in business.

4. The cause you are working on does matter

Successful sustainable ventures are based around causes, not products.

This means the ventures’ focus is on improving the world around us. Businesses that are a success, according to sustainable entrepreneurs, are those that are good for people and the planet.

You can’t just create a sustainable business, you need to create a good sustainable business. This doesn’t mean that you will create a business around a cause, it just means that your venture is driven by a cause.

You should also not only think about solving a problem that has frustrated you or your neighbors, you need to think about how to scale your solution at a large and international scale.

5. Flexibility, when things change, is required

When developing a sustainable business, you need to be open to changes in both your partners and your cause. Successful sustainable ventures are flexible — not rigid — in their approach to business.

This means, in order to implement or scale your business, you are willing to test different approaches and even some that commercial entrepreneurs implement as long as they do not hurt your cause or your mission.

Successful businesses are adaptable in order to meet the needs of their stakeholders, customers, and the world around us.

Successful business owners and managers are open to new opportunities and are willing to change their approach when things do not go as planned.

 Bottom line

Successful sustainable ventures are driven by a cause, not products. They are real-world impact platforms, creating positive social and environmental change.

Successful businesses are flexible and adaptable, while being based on a cause. And to create a sustainable business, you must be willing to change. Entrepreneurs who are open to change will be successful in creating sustainable businesses driven by causes.