Unit 3: Integrating Entrepreneurship with Innovation and Sustainability
Can entrepreneurship make the world a better place? Entrepreneurship means finding new ways to solve problems in the marketplace. Unfortunately, this short-sighted definition has contributed to many sustainability crises. Eco- and social entrepreneurs take the traditional approach to solving problems and integrate it with the progressive values of sustainability and the triple bottom line: people, planet, profit. Businesses and their stakeholders will have many sustainability challenges in the years ahead, and the main issue may be urgency and the pace of change. This unit explores the process of identifying innovative opportunities that can solve sustainability challenges.
Completing this unit should take you approximately 12 hours.
Upon successful completion of this unit, you will be able to:
- describe the sustainability entrepreneurial process;
- identify sustainability needs in society and the marketplace by finding opportunities for sustainable entrepreneurship;
- develop creative skills such as idea generation and product design improvements that enhance innovation; and
- recognize social and environmental ethical issues, such as equity, wellbeing, production and consumption, arising from innovation and sustainability product development.
3.1: The Sustainability Entrepreneurial Process
This section describes an innovation methodology that can be applied to match capabilities with resources to achieve sustainable goals. It connects the creative phase (idea, vision, innovation, and breakthrough) with the operational phase (mission, strategy, planning, and execution).
How can this concept be applied to real-world sustainable innovation and entrepreneurial initiatives?
This video introduces circular business models. It discusses how a circular economy necessitates the design and implementation of cascading models, where the same resources are used again and again, and the sharing economy where one resource is used by many. It discusses types of circular business models, including rental, reusing, recycling, refurbishing, and modular design, by applying them to sectors such as apparel, transportation, and sporting gear.
How can companies deliver and capture value by using circular business models? How does this require new ways of thinking about value capture?Albert Einstein is credited for saying that "we can't solve the world's problems by using the same kind of thinking we used when we created them". Read this chapter, which explores how integrating entrepreneurship, innovation, and sustainable business can help solve the world's challenges.
Sustainability, innovation, and entrepreneurship involve traveling across new ground and pushing through current limits to reimagine our world. Read this journey through entrepreneurial processes and methodologies that will help you see sustainability solutions to existing problems.
How can systems and molecular thinking open new product and process design opportunities? What does it mean to strategically apply weak ties, adaptive collaboration, and radical incrementalism?
3.1.1: Identifying Opportunities That Can Solve Sustainability Challenges
This talk makes a case for optimism – that we'll invent, innovate, and create ways to solve the challenges that loom over us. How can optimism shift people from scarcity to abundance thinking and help solve our current challenges? How can technology and bold thinking help solve sustainability issues?
This video discusses the dual roles of responsibility and opportunity in the design of more sustainable business models. It describes how some companies improve their sustainability because they see themselves as responsible for managing their own social and environmental externalities. Some companies see profitable growth opportunities by addressing social and environmental externalities they do not necessarily have responsibility for.
How would you describe the dual roles of responsibility and opportunity in product design and innovation? How can a company identify and deliver more positive than negative externalities through design and innovation?
3.2: Creativity and Innovation
To create a better world, we need an abundance of optimism. We also need advanced creativity and innovation skills.
Read this article that highlights ways to encourage creativity and support innovation. What management practices are effective in creating a culture of innovation?
3.2.1: Techniques for Encouraging Creativity
How do creative people come up with great ideas? This talk discusses three habits of "originals" (thinkers who dream up new ideas and take action to put them into the world), including embracing failure. How can people develop skills that enhance innovation or originality? What methods can you adopt to increase your creativity?
Certain creativity techniques facilitate idea generation and increase the originality of those ideas. This article provides a ready-to-implement creativity training concept with design thinking elements you can practice on your own or lead with a team of co-creators. Try out some of the exercises to see how many new ideas you can develop related to innovation sustainability.
This toolkit includes ideas for all stages of the innovation process. While the entire toolkit is very long, for our purposes, focus on the Creative Workshop, Fast Idea Generator, and Thinking Hats sections.
3.2.2: Sustainability Innovation in Society and the Marketplace
This video introduces the concepts of social sustainability and social entrepreneurship. It sheds light on the societal boundaries companies operate in and the social sustainability problems they face, including human rights abuses, corruption, inequality, and poverty.
How can social entrepreneurship contribute to society as an extension of a company's activities in the marketplace? What are some examples of social entrepreneurship in the marketplace?
Digital social innovation means using technology for good to tackle real-world social challenges, such as health, refugees and migration, or the environment. Watch this video, which highlights the work of digital social innovators and how these organizations are making positive changes in society.
3.3: Level and Sector Product Identification
When identifying entrepreneurial opportunities, sometimes called idea or product screening, an effective process involves assessing the various venture ideas being considered at the societal, industry, market, and firm-levels.
3.3.1: Specific Level and Sector Evaluation and Need Identification
One of the greatest challenges modern society faces is the supply of sustainable energy. One fundamental issue is finding the right portfolio of energy sources that are environmentally safe and cost-effective. This case study discusses the challenges of electric energy systems and how to integrate sustainable energy resources and smart grid developments.
3.3.2: Proposed Product Solutions
As you are nearing the end of the course, you likely have ideas for product solutions that could contribute to people and the planet. As part of this process, read the Evidence Planning, SWOT analysis, Business Model Canvas, and Problem Definition sections of this toolkit.
3.3.3: Ethical Considerations Related to Proposed Product Solutions
Throughout this course, we have covered why we need sustainability innovation, what needs to change, and how sustainability can lead to a more abundant world. Another important area is impact investing and social entrepreneurship. This section demonstrates how social enterprises have the potential to connect financial values with the public good. Read this chapter to learn about the work of six social enterprises and their services.
- How do value-driven social enterprises and impact investors differ from profit-driven enterprises and traditional venture capital firms?
- How do social enterprises include ethical considerations in their product solutions?
- How can business be a force for good and transform our world?
Study Sessions
These study sessions are an excellent way to review what you've learned so far and are presented by the professor who created the course. Watch these as you work through the unit and prepare to take the final exam.
We also recommend reviewing this Study Guide before taking the Unit 3 Assessment.
Unit 3 Assessment
- Receive a grade
Take this assessment to see how well you understood this unit.
- This assessment does not count towards your grade. It is just for practice!
- You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
- You can take this assessment as many times as you want, whenever you want.