Sustainability and Venture Success: A study on European start-ups in the food industry

Abstract: In common discourse it is often assumed that sustainability and business are opposing dials, where increasing the level of sustainability, decreases the financial benefits. However, many researchers have demonstrated that for established businesses there is a positive relation between the implementation of sustainability and financial performance. However, it cannot be assumed that this relationship is also existent for start-ups. In this research the relationship between sustainability and venture success is explored by means of a quantitative study of 859 start-ups in Europe who are part of the Food industry. The outcomes conclude that there is a positive relationship between being an impact start-up, and acquiring funding, having a higher valuation, and attracting more employees. The same goes for specifically contributing to SDG 2 and SDG 13, as well as working on sustainability as a core part of the start-up, with this last relationship showing the most significant effect. However, no significant relationship between working towards sustainability on the side and the three aspects of venture success was observed. Through this research empirical evidence is provided for entrepreneurs to help them with their decision making process regarding the implementation of sustainability in their ventures for instance in the business model itself. Furthermore, suggestions for further research that apply outside of Europe and the Food industry on sustainable ventures are provided.