Report for SEED Initiative Research Programme: Critical Success Factors and Performance Measures for Start-up Social and Environmental Enterprises

• The SEED (Supporting Entrepreneurs for Environment and Development) initiative aims to identify, profile, and research promising approaches to local sustainable development through enterprises.
• This learning brief includes a literature review to identify success factors for both social and environmental enterprise projects.
• The review is combined with case study knowledge from SEED contest winners to determine factors present for successful enterprises.
• Eight factors necessary for a successful enterprise are: (1) strong leadership; (2) local partnerships; (3) proven market value and product desirability; (4) technical skills that include business planning and marketing; (5) alignment with the community’s needs and aspirations; (6) short and long term benefits management and equal benefit sharing; (7) community engagement and involvement; (8) and risk management.
• Fourteen indicators to help guide the enterprise development process which evaluate the business, social, and environmental performance of the project, as well as the success of partnerships.

Information relevant to Learning Questions:

Are enabling conditions in place to support a sustainable enterprise?

• Stakeholder alignment,
• Market demand, profit potential
• Governance
• Policies for enterprises, business alliances
• Technical capacity
• Benefit sharing, biodiversity linkage, planning for external disturbance

Does the enterprise lead to benefits to stakeholders?

• Increased income for participants
• Non-cash benefits

Do the benefits lead to positive changes in attitudes and behavior?

• Behaviors regarding sustainable use of resources

Does a change in stakeholders’ behaviors lead to a reduction to threats to biodiversity (or restoration)?

• Agriculture and aquaculture
• Biological resource use
• Climate change and severe weather

Does a reduction in threats (or restoration) lead to conservation?

• Forest ecosystems
• Freshwater ecosystems
• Grassland ecosystems
• Marine ecosystems