(Newsletter #9) Entrepreneurs: with great potential comes great responsibility?

Right from the start, entrepreneurs have dozens of decisions to make. But their motivations are varied, even contrasting: spreading an innovation, making a name for themselves, earning a living, improving a part of everyday life...

Until recently, startups mainly faced a market: now they also face society and its stakeholders, who expect them to be ethical and sustainable.

Why and how can they avoid creating ‘ESG debt’? What examples can inspire? Why adopt an approach that is by design, cross-functional and as close as possible to its communities? Is there a possible path to post-growth? This month, our professors and researchers present their ideas, initiatives and solutions on this vast subject of responsible entrepreneurship.

Don't forget that all these articles are available in French on edhec.edu, and if you haven't yet signed up to receive the EDHEC Vox monthly newsletter: follow this link.

Happy reading!

Startup with a mission: navigating with a strategic compass from the outset

By Yasmine Machwate - Head of EDHEC Incubators, and Justine Soudier - Director EDHEC Entrepreneurs & East Coast Director EDHEC America

Mission-driven startups, which prioritize social or environmental goals at the core of their strategy, are rising. However, these startups face challenges balancing their mission with the pressures for rapid growth, often leading to compromises. In this article, the authors present the advantages of defining a mission from the start, to ensure that it guides all strategic decisions and prevents what is called "ESG debt". They unveil the EDHEC method - "Responsible Entrepreneurship by Design"- created in-house, deployed in our incubators and available to all interested entrepeneurs... Read this article

Why and how we should add ethics to entrepreneurship education

By Jana Thiel , EDHEC Associate Professor

In this article, the author emphasizes the growing importance of ethics and integrity in modern entrepreneurship education, particularly in business schools. Startups often present ethical dilemmas, as seen in failures like Theranos, highlighting the need for stronger ethical grounding. Research shows that entrepreneurship tends to attract individuals with power-seeking motives, making it essential to teach students that business and ethics are not mutually exclusive. An interactive scenario proposed in classes is presented, to spark debate among students and enhance their personal insights into moral decision-making... Read this article

[Case by case #8] P. Daly et S. Ruaud - Fashion and responsible entrepreneurship: the story of La Gentle Factory

An interview with Peter Daly - EDHEC Professor & Director of the MSc in Management & Leadership - and Sabine Ruaud - EDHEC Professor

This article presents the launch of La Gentle Factory , an eco-friendly clothing brand, and elaborates from it on the growing consumer interest in sustainable fashion as an alternative to fast fashion's damaging environmental impact. The two interviewees explain how this case study allows them (and any educator interested) to teach responsible entrepreneurship, focusing on eco-friendly practices, business model transformation and even the rise of regenerative practices. They stress that EDHEC students are increasingly engaged in sustainable fashion, with some launching their own ethical brands... Read this interview

4 questions to T. B. Long about entrepreneurship and post-growth

An interview with Thomas B. Long - EDHEC Associate Professor

Beside the "why", the focus is now increasingly on the "how" to implement sustainable and post-growth strategies. The interviewee outlines two approaches: betting on technological innovations to decouple growth from environmental impact; or rethinking the economy and businesses to embrace post-growth. He emphasizes entrepreneurship's problem-solving potential, noting that while sustainable entrepreneurship has made progress, broader systemic changes are necessary. In that sense, post-growth entrepreneurship redefines success by prioritizing human and ecological well-being over traditional growth metrics... Read this interview

[#dataviz] Entrepreneurs: have you heard of the "ESG Debt"?

By Ludovic Cailluet – EDHEC Professor, EDHEC Centre for Responsible Entrepreneurship Associate Dean, Yasmine Machwate - Head of EDHEC Incubators, and Justine Soudier - Director EDHEC Entrepreneurs & East Coast Director EDHEC America

According to a 2022 EDHEC/Station F study, while 9 out of 10 startups are ready to make a clear commitment to ESG practices, 75% of them face difficulties in taking action. One of the obstacles is the ‘ESG debt’, but this is not inevitable: EDHEC's entrepreneurial eco-system has developped a holistic method called ‘Responsible Entrepreneurship by Design’ (RED), enabling startups to integrate economic, social and environmental performance issues into the heart of their model... Discover this carousel

The rise of Latino entrepreneurship in the United States

By Maria Figueroa-Armijos - EDHEC Associate Professor, and Corinne Valdivia - University of Missouri Doane Professor

Latino entrepreneurs in the U.S. are starting businesses at twice the rate of the general population, significantly boosting economic growth, particularly in small and non-metropolitan areas. In this article, the authors advocate that despite some obstacles, Latino business ownership is a key strategy for overcoming labor market disadvantages, fostering economic independence, and enhancing social integration. And they state that, with Latino-owned businesses continuously growing, understanding and supporting this entrepreneurial surge is crucial for fostering an inclusive economy at a national level… Read this article

(Call for participation) Entrepreneurs: understanding stress, mental health and well-being to manage them better

The image of entrepreneurs as almost glamorous superstars, combining pugnacity and success, is unfortunately tenacious. In reality, high levels of stress, anxiety, and burnout are daily experiences of most entrepreneurs. Fabian Bernhard - EDHEC Associate Professor - and Erika Ni - Mannheim University Research Assistant - are currently conducting research to better understand this phenomenon. Find out more and, if you are an entrepreneur concerned by these issues, take part in the study... Read this news

Meet René Rohrbeck, a Professor of strategy who uses foresight as a lever for impact

Portrait of René Rohrbeck - EDHEC Professor, Director of the future Centre for Net Positive Business

"The start of the career of this native Berliner came as something of a revelation: in 2006, fresh from an MSc from the Technische Universität, René Rohrbeck joined Deutsche Telekom Laboratories. In this unit dedicated to developing the telecoms giant's R&D strategy, René quickly realised that the major groups were woefully unprepared for what he describes as the tides. 'This technology and strategy watch work opened my eyes to the inability of companies to prepare for major changes such as climate change, decarbonisation, digitalisation and, today, artificial intelligence'..." Read this portrait

Illustration (header) 2024 - Anne Moreau