While startups are acknowledged for their potential to address sustainability issues, little is known on how to assess their impact, given the uncertainty they deal with and their lack of resources. This paper investigates the ones that are supposed to be ‘best-in-class’ in that matter, that is, startups targeting sustainability, in order to explore how they integrate sustainability impact assessment in their entrepreneurial process. We conducted a multiple case study of eight sustainable startups, based on a 2-year longitudinal research in their incubator to gather multiple sources of information. Our results revealed that the integration of the triple bottom line in the entrepreneurial process has a major effect on startups’ sustainability impact assessment practices. ‘Born-sustainable startups’, which have aimed for the triple bottom line since idea generation, have more robust tools and routines than ‘Transitioned sustainable startups’, which integrated the triple bottom line during prototype/validation.

The circular economy (CE) has gained increasing attention as a means towards sustainable development. Entrepreneurs and small and medium enterprises are regarded as key custodians in the transition to a CE. Opportunity identification is the cornerstone of entrepreneurship and has been extensively studied in traditional venturing; however, research on circular opportunity identification is limited. This paper addresses this gap by exploring (1) how entrepreneurs identify opportunities in the CE, underpinned by an adaptation of a sustainable opportunity identification conceptual model and (2) how CE principles are reflected in the identified opportunities, through the lens of the ReSOLVE CE framework. Nine in-depth interviews were conducted with circular entrepreneurs from three European Union member states with high, medium, and low Resource Efficiency Scoreboard rankings. The findings shed light into the black box of circular opportunity identification and indicate that the ReSOLVE levers constitute a useful framework to advance knowledge on circular entrepreneurship.

This research aims to unpack how digital technologies can facilitate the flourishing of circular business practices in small- and medium-sized enterprises by structuring a detailed going circular path that explains businesses’ evolution toward circularity. In doing so, it outlines how the observed organizations have adopted – or are adopting – circular economy principles thanks to business digitalization. Following an inductive approach based on a multiple case study methodology, we investigated 16 small- and medium-sized enterprises operating in industries that put considerable pressure on the environment (e.g., manufacturing, chemical, construction, fashion, food, and beverage). Our findings confirm how digital technologies, as well as Industry 4.0 structures, play a fundamental role in shaping, enabling, enhancing, and refining circular products and processes development. Accordingly, we outline a generalizable step-by-step process to pursue circular economy by employing digital technologies. The present study represents a practical handout for guiding companies through their going circular path.

An increasing number of small and medium enterprises (SMEs) are focusing on sustainable development and on embracing sustainable business models (SBMs). Despite the growing interest of academics and practitioners in SBMs, and the benefits for stakeholders, there is limited knowledge regarding the factors enabling SME transition toward SBMs, leading them to integrate sustainable principles in their BMs. This study explores the enabling factors for SBM adoption by SMEs and provides an improved understanding of this recent phenomenon. Understanding what factors enable adoption of SBMs is crucial for both SMEs and policymakers. The research uses an inductive qualitative research design approach focused on multiple case studies. The findings reveal that both internal and external factors play a key role in enabling SME transition toward SBM adoption. The internal factors that emerged include openness, change of mindset, problemistic search, social exchange, and resource valorization, while external factors included markets change, technological innovation, stakeholders’ influences, policy and institutions.

Addressing major global environmental and social challenges requires transformation of the private sector. Small- to medium-sized enterprises (SMEs) constitute 90% of private organisations globally, resulting in calls for research into the strategic roles SMEs can play in shaping sustainable futures through adopting sustainable business models (SBMs). The purpose of our study is to understand the factors that allow SMEs to successfully adopt SBMs. We used an exploratory qualitative approach drawing on interviews with SMEs implementing SBMs. Our findings extend contemporary insights by revealing the important role of the external support (‘enabling’) environment, and identifying—potentially transformative—capabilities that can help steer SMEs’ transitions to SBMs. These include persistence, tenacity, flexibility, adaptability, and a willingness to learn and fail. They enable SMEs to successfully operate in times of uncertainty and rapid changes in the external environment, and respond to new requirements through changes to their business models.

Medium Enterprises (MEs) are significant contributors to global economic development. Integrating sustainability practices in their business can support MEs worldwide to become more sustainable, improving companies’ performance and stakeholders’ expectations. Nevertheless, few MEs adopt sustainable practices. Following Behavioral Decision Theory and Behavioral Strategy literature, we argue that this can be associated with their managers’ decision-making processes – apart from not possessing considerable resources like large companies. Via a mixed-method research design involving 277 Italian ME managers, we investigate the cognitive biases that hinder the development of a sustainable performance management system (SPMS) in MEs. We found the most prominent biases influencing SPMS development. Then, we developed a ‘SPMS de-biasing funnel’ framework. We propose some corrective actions to reduce the impact of the most critical cognitive biases that influence SPMS development, allowing related beneficial potential outcomes.

This study investigates the managerial approaches family SMEs adopt to address sustainability in the context of the Blue Economy. Using a qualitative methodology, we conduct nine case studies of family firms operating in Sicily's COSVAP Fishing District area. The data are collected via semi-structured interviews with the founders/managers and analyzed using the Gioia method. The results reveal that family SMEs approach sustainability by adopting three managerial approaches. In the first approach, SME managers conceive sustainability as a threat to the economic sustainability of their firms. The second approach implies that sustainability must undergo specific compromises. The third approach considers sustainability as an opportunity whereby social, environmental, and economic sustainability goals are balanced. Regarding the theoretical implications, our work provides a comprehensive account of managerial approaches of family SMEs toward sustainability. The study offers insights for practitioners and policymakers concerning how to facilitate the transition of family SMEs – and, specifically, fisheries – toward sustainability.

Startups play a crucial role in advancing the Sustainable Development Goals (SDGs) through their innovative solutions that increasingly focus on sustainability. However, they face significant challenges in effectively assessing their contribution to the SDGs. In our study, by adopting an action-research methodology, we develop and introduce Prosper, i.e., a tailored social impact assessment (SIA) framework for startups. First, we conducted a comprehensive review of existing methods and standards for assessing social impact to establish an initial foundation of Prosper. Second, we refined Prosper based on an empirical validation on five startups. By embracing action research, we aim to empower startups with a robust and user-friendly tool, which facilitates SIA and representation. We also contribute to the literature aimed at overcoming the existing sustainability barriers for startups and to respond to the call for assisting them in reporting about SDGs. We also discuss practical implications and future research avenues.

This research aims to analyse the links and potential limiting and supporting factors between sustainability actions and sustainability reporting. Comparing companies involved in sustainability actions and those whose reporting practices lack a formal reporting system, this analysis focuses on Italian small and medium-sized enterprises (SMEs) in the meat and cured meat industry, identifying the perspective (formative) that links sustainability action to communication in these SMEs. The qualitative interpretative approach, based on semistructured interviews, highlights the relevant strengths and weaknesses concerning substantive sustainability actions and the effect of communication on them, providing implications for international and sectoral policies and management choices. Filling a gap in the SME literature concerning their approaches to sustainability reporting and action (and the relationship thereof), this study also introduces, as a widely used practice, ‘greenhushing’, i.e., the deliberate absence of or limited communication on effectively implemented sustainability practices or their salient results.

Policymakers, academics, and practitioners are increasingly discussing non-financial reporting (NFR) initiatives, i.e., reporting initiatives that are related to environmental and social matters. The implementation of NFR initiatives in the context of small and medium-sized enterprises (SMEs) is a key topic. Based on a systematic literature review, this article first synthesizes what we know about the mechanisms underlying NFR initiatives implemented by SMEs. A thematic analysis led to the identification and examination of drivers, enabling factors, and challenges for NFR initiatives. Relevant drivers include legitimacy-based motivations, competitive advantage, and stakeholder engagement. Enabling factors include specific guidelines and tools for NFR. Lack of capabilities and lack of standardization are significant challenges. Second, drawing on the thematic analysis and on what we do not know about NFR in the context of SMEs, a novel conceptualization of NFR as a process characterized by three main phases is presented. Last, this article suggests future research opportunities.