Iwan Harsono, Ardi Azhar Nampira, Restu Auliani, Erba Kalo Manik

Exploring the Determinants of Socio-Environmental Sustainability in New Business Initiation

Introduction

Exploring the determinants of socio-environmental sustainability in new business initiation. Discover determinants of socio-environmental sustainability in Indonesian start-ups. Analyzes stakeholder engagement, regulations, culture, & resources to guide policymakers & entrepreneurs.

Abstract

This study explores the determinants of social and environmental sustainability in new business initiation in Indonesia using qualitative analysis based on insights from five informants, including entrepreneurs, policymakers, and environmental experts. Four key dimensions—stakeholder engagement, regulatory frameworks, cultural values, and resource availability—emerged as critical to sustainability practices. Findings highlight that effective stakeholder engagement fosters trust and accountability, cultural values such as gotong royong align with sustainability principles, and regulatory frameworks offer guidance but face enforcement challenges. Limited access to financial and technological resources remains a significant barrier. The interplay of these determinants underscores the need for integrated strategies to promote sustainability in Indonesian start-ups. The study contributes to understanding how local context shapes sustainable entrepreneurship and offers actionable insights for policymakers and entrepreneurs.

Review

This study addresses a highly relevant and timely topic concerning the determinants of socio-environmental sustainability within new business initiation, specifically within the Indonesian context. The qualitative approach, drawing insights from a diverse set of five informants including entrepreneurs, policymakers, and environmental experts, is a commendable starting point for an exploratory study. The identification of four key dimensions—stakeholder engagement, regulatory frameworks, cultural values, and resource availability—provides a comprehensive framework for understanding the multifaceted challenges and opportunities in this domain. The emphasis on local cultural values like *gotong royong* as an alignment with sustainability principles is particularly insightful, highlighting the potential for culturally congruent solutions. The abstract effectively outlines the nuanced findings within each determinant. For instance, it notes the importance of stakeholder engagement in fostering trust, the dual role of regulatory frameworks in providing guidance while facing enforcement challenges, and the significant barrier posed by limited access to financial and technological resources. The study's stated contribution to understanding how local contexts shape sustainable entrepreneurship is valuable, and the actionable insights for policymakers and entrepreneurs are a strong point. While the qualitative nature with five informants provides depth, it inherently limits the generalizability of the findings, positioning this as an initial exploration rather than a definitive statement on the determinants across all Indonesian new businesses. Overall, this is a promising study that lays important groundwork for promoting sustainable entrepreneurship in emerging economies. The call for integrated strategies to address the interplay of these determinants is a crucial recommendation. For future work, it would be beneficial to consider how these qualitative insights could be validated or expanded through larger-scale studies, potentially incorporating quantitative methods, to provide a broader empirical basis for the identified determinants. Nevertheless, the current study offers significant conceptual and practical contributions by illuminating the intricate factors at play and providing a foundation for more targeted interventions and policy development in the Indonesian start-up ecosystem.

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