Investigating the entrepreneurial orientation of circular-social hybrid start-ups by assessing their path toward sustainability: Evidence from 20 European cases

Abstract

Circular-social hybrid start-ups have a remarkable potential to create environmental, social, and economic value. Despite their relevance for the sustainability transition, there is a dearth of literature analysing their entrepreneurial orientation and how they create environmental and social value in their business models. Therefore, the present study, framed in the theory of entrepreneurial orientation, empirically assesses the dynamics of creating positive sustainable value by aligning the initial orientation with the sustainability activities and performance. The research is conducted through semi-structured interviews with the founders of twenty European start-ups. The study shows that circular-social hybrid start-ups have a strong sustainability orientation, but some display difficulties in achieving their initial mission. This entrepreneurial path from mission to reality is identified by uncovering business model dynamics and leverage points: scale-up and growth, use of digital solutions, improvement of working conditions, research and development, and alignment of business processes. These leverage points influence the potential mission drift of the start-up, i.e. its deviation from the path to sustainability. Entrepreneurs can use this study to identify leverage points to support their path toward sustainability.