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Darby Joyce
Content Marketing Coordinator, Kogod School of Business
Founders who focus on sustainable entrepreneurship create an ecosystem where social responsibility is integrated into a company’s ethos from the outset, blending traditional economic goals with a forward-thinking approach that considers the business’s ecological and social impact.
Sustainable entrepreneurship combines the innovation and problem-solving often found in entrepreneurial ventures with a broader focus on creating positive social and environmental impact. Sustainable ventures often have missions focused on addressing specific social or environmental challenges, such as transitioning to clean energy, promoting civic engagement, or supporting victims of gender-based violence. Other founders might incorporate sustainability into their business operations by ensuring ethical supply chains and actively participating in their communities. What unifies sustainable entrepreneurial ventures is the desire to succeed in business without harming the world around them.
Recent years have seen consumers take an interest in financially supporting businesses aligning with their values. With shoppers taking note of which companies put their money where their mouth is when it comes to corporate social responsibility, sustainable entrepreneurs can reach out and create a customer base of like-minded people. Additionally, a focus on sustainable entrepreneurship can foster innovation and business resilience; studies show that businesses that prioritize environmental, social, and governance (ESG) elements benefit financially. Not only does sustainability benefit people and the planet, but it’s also good for business.
Although the benefits of prioritizing sustainable entrepreneurship are clear, entrepreneurs who focus on sustainability can face unique hurdles in addition to the usual challenges of starting a business. Entrepreneurial ventures often involve significant investments to get started, and this cost increases even further when founders prioritize sustainable materials and ethical supply chains. Though focusing on sustainability can lead to more efficient practices in the long term, the cost of getting started is a barrier for many potential entrepreneurs. Additionally, entrepreneurship is often recognized as a mentally taxing path; ventures usually begin with just one or a few employees, meaning that both successes and failures can feel deeply personal. Setting out to start your own business can be challenging and even isolating, but joining a community designed for entrepreneurs allows founders to learn from and support one another through the twists and turns of running a new company.
At American University’s Veloric Center for Entrepreneurship, the Entrepreneurship Incubator supports budding startups in various ways, including financial grants, mentorship, and educational opportunities. Since its launch in 2014, the Incubator has supported nearly 300 ventures, which have raised over $12 million in capital and generated almost $11 million in revenue. Sustainability is built into the framework for supporting student startups.
As of 2025, the Incubator is home to thirty-two active ventures by founders across six of the university’s schools, and it aims to create a thriving community of entrepreneurs. Lisa Francis, founder of The Federal Lunch, highlights the Veloric Center’s focus on bringing people together, saying, “Entrepreneurship is a very lonely journey—rewarding, but lonely—and the incubator makes you feel less alone. You feel as if you have folks that you can lean on who are actual experts in the space. The incubator connected me with not only expertise but with a valuable support system.” By building a community of people who are also undertaking the hard work of running their businesses, individuals with entrepreneurial ambitions can learn about the concrete steps they can take to achieve their sustainable entrepreneurship goals—and receive the vital reminder that it’s possible.