Policy for sustainable entrepreneurship: a crowdsourced framework

Sustainable entrepreneurship—entrepreneurship with social and ecological gains as well as economic ones—has the potential to play a significant role in addressing societal and environmental challenges. However, sustainability and entrepreneurship have hitherto been addressed through separate policy regimes, and it is not clear how policymakers can encourage sustainable entrepreneurship specifically. The authors develop a policy framework for sustainable entrepreneurship, using an open innovation approach with policymakers, business executives, academics, entrepreneurs and other relevant actors, including an online crowdsourcing event with 150 participants. The framework incorporates five policy domains: creating awareness and skills; building networks; funding and investing; measuring impact and performance; and innovating government. The article proposes a modified version of the multi-level perspective (MLP) on how socio-technical transitions occur, since the findings suggest that policy can catalyze the facilitation and aggregation of innovations coming from the niche level, thereby evolving the socio-technical regime, in addition to the role of policy described in earlier work in stabilizing the socio-technical regime. Contributions to entrepreneurship policy literature include the policy domain of measuring impact and performance, as appropriate success measures are non-trivial in a triple bottom line environment, and the potential for open policy innovation in entrepreneurship policy. Contributions to sustainability policy literature include the requirements for support mechanisms and capacity building to empower individuals to contribute as innovators and entrepreneurs and not just consumers. The sustainable entrepreneurship framework can be applied by policymakers to develop context-specific policies: this is illustrated with a worked example of EU policy recommendations. The paper also outlines a method for crowdsourcing policy innovations.