According to George Hammond, the outlook for start-ups is bleak right now (“Start-up failures rise 60% as founders face hangover from boom years”, FT.com, August 19). In many ways, he’s right. With the rate of bankruptcies higher than ever before, founders may be questioning whether it’s worth it. It is.
That said, start-ups should be tackling globally relevant challenges. Successful founders and leaders will be the ones guiding businesses towards a more sustainable future.
Over half (54 per cent) of CEOs view sustainability issues as a higher priority than a year ago. Not only is this good for the soul, but it’s also a great business decision. With investors prioritising environmental, social and governance (ESG) factors, start-ups that adopt sustainable practices can differentiate themselves, attract funding, and increase revenue by over 10 per cent.
Sustainability as a strategy requires nurturing a culture of continuous learning and innovation. Leaders
must cultivate adaptability and
critical thinking — skills essential for driving impactful change and navigating the complexities of sustainable business practices. These “human skills” are key to building resilient organisations that will thrive amid economic and environmental challenges.
Embracing sustainability isn’t just about ethics; it’s a strategic necessity for enduring success in today’s market. Start-ups that ignore this may struggle to survive as consumer and investor expectations evolve.
Thomas Funke
Co-CEO, Tomorrow University of Applied Sciences, Berlin, Germany
