Study: Sustainability Can Improve Company Bottom Line

A new study suggests that sustainable business practices are not just an expense, but can enhance a company's profitability. The research, conducted in Jordan and the U.S., focused on how entrepreneurs can embed environmentally friendly operations into their daily activities.

The researchers found that circular economy principles—keeping products and materials in use as long as possible through repair, reuse, and remanufacturing—work best when aligned with entrepreneurs' existing goals. Projects focused solely on environmental aspects were less successful, but when sustainability was framed as an opportunity rather than an obligation, entrepreneurs were more receptive.

In Jordan, a two-year project revealed that an initial cohort of entrepreneurs, trained in circular economy through lectures, faced significant challenges, with only one of four teams completing the program. A subsequent cohort shifted to project-based learning, encouraging participants to pursue their own interests. This resulted in a dramatic improvement: five out of eight teams successfully completed the program, and many ventures remained operational a year later.

In the U.S., the research was integrated into an existing accelerator program. Sustainability was presented not as a separate agenda, but as part of strengthening business operations, including risk management and product design. Entrepreneurs who were not initially interested in sustainability began adopting the concepts when they were linked to their daily business objectives. The study indicates that competitive sustainability, where environmental benefits and profitability go hand-in-hand, is the path to success.