Essay On Developing Sustainable Enterprises
This paper seeks to evaluate the critical aspect of developing sustainable enterprises and the contribution of such enterprises to economic development. Sustainable enterprises are defined as business enterprises that integrate a continuous and holistic process in the attempt to eliminate any harm to the ecological systems and improve the health and vitality of social systems as well as improving the future financial performance of a business and its operations. These enterprises entail taking into account the principles of the three dimensions of sustainability. This implies considering the social, economic, and environmental dimensions and their implications. Furthermore, it entails the transformation of the entire value chain. This is from the supply of materials, sales and marketing, product design as well as end- of -life management. Sustainable enterprises are major tools in the economy that fuel growth and development. This is because they utilize the available resources in an optimum way to solve existing problems in the economy such as combating poverty. This owes to the fact that every social, economic, or environmental problem is viewed as an opportunity. In fact, such enterprises help solve the problem of unemployment in the economy. They are at the heart of economic development in many economies. Sustainable enterprises contribute immensely to the provision of goods and services required. This is through the provision of consumer goods in form of food, healthcare and shelter. They also generate a source of tax revenue. The revenue is in return used in the provision of public services such as infrastructure, healthcare, and education
The economic development of any economy therefore means that there must be sustainable enterprises in the picture first. The development of sustainable enterprises is a critical aspect of the economy. Such enterprises entail minimizing risks, costs, and in return creating new investment opportunities. I am personally interested in the area of developing sustainable enterprises as I have occasionally read about it and it appears to be a significant factor. The issue poses problems to almost all stakeholders in the economy and in am thereby interested in looking for solutions and the way forward in addressing the concern. Moreover, I am interested in taking economic growth to the next level. I would like to see an economy where day- to- day operations of organizations, processes and systems are reshaped and as well incorporate the collaboration of industry in setting standards of production.
Evidence provides that developing sustained enterprises is the key to the growth of any economy. Further, evidence postulates that sustainable enterprises offer solutions to majority of problems inherent in nations. This is because they try to help in the growth of the economic performance as well as considering the effects to the environment. For instance, industries develop policies to increase their profits as well as policies that take into consideration the reduction of pollution to the environment. Therefore, most environmental problems are lessened such as the hazard of global warming. Therefore, having taken into consideration the entire aspects of production, lots of problems are solved ranging from regulatory concerns to managing such sustainability.
The issue of sustained enterprises is a critical aspect in an economy and for it to be developed successfully, it relies on certain conditions. The basic conditions if not followed appropriately may result to the failure of such sustainability. Development of sustained enterprises relies on stable political environment as well as a growing economy. Without these conditions, it becomes impossible for the growth of such sustained enterprises. Furthermore, equity and economic inclusion are essential for the successful growth of sustainable enterprises. This ensures that every citizen gets an opportunity to contribute to the development of the economy. Consequently, this encourages inclusion even by the lower wage and skilled individuals in enterprising. This as well will encourage private investors to invest in the economy. With basic knowledge of these basic conditions, the development of sustainable enterprises becomes a success and this is directly reflected in the growth and development of the economy for the benefit of all the stakeholders. Basically, developing sustainable enterprises is based on the theoretical approach of a stable environment without rampant environmental dynamics.
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The development and promotion of sustainable enterprises is not only a broad but a wide-ranging subject. Sustainability is interpreted in two ways, in the first interpretation sustainable enterprises are described as businesses that are established to last. Secondly, sustainability can be defined as a continuous process, which seeks to eliminate any possibilities of bringing harm to the ecological systems as well as enhancing the vitality and health of social systems and ultimately improving on the financial performance of a business and its activities. Efficient and strong markets require effective and strong institutions, which ensure that human, natural, and financial resources are combined in an equitable manner in order to yield enhanced productivity and innovation. This aspects call for new established form of cooperation between businesses, society, and the government to ensure that the quality and sustained existence of present and future life is optimized. The direction of sustainability requires creativity and innovation in the management of economic, human, and environmental resources to yield collective well-being. This paper analyzes the aspect of developing sustainable enterprises and expounds on the contribution to modern economies which has been related to the triple bottom line theory of sustainability. Developing sustainable enterprises is crucial because it contributes to the economic growth.
Developing sustainable enterprises is the main goal of businesses and governments in the past decade. However, the determination of the degree of sustainability in an organization is a difficult task. This difficulty of measurement has been simplified by the accounting framework, known as triple bottom line. The framework focuses on a complete investment results taking into consideration the people, planet, and profits. Triple bottom line plays a very significant role in supporting the objectives of sustainability. The significance of enterprise as the primary source of growth, development and employment in nations is an important aspect. Enterprises ranging from micro- enterprises, small, medium, and large companies are the principle sources of job opportunities and economic growth in almost all countries (Agwu, 2014, p 83). The issue of developing sustainable enterprises postulates a holistic and balanced integrated approach on development. It meets the present needs without overlooking the ability and potential of the future generations to meet their needs. Sustainable enterprises play a significant role in the economy of any nation and therefore the development of such sustainable enterprises presents an important aspect in the growth and development of nations. There is a positive correlation between sustained enterprise and development owing to the fact that businesses grow where the society thrives (James, 2010, p 173).
Enterprises have to ensure that their primary business activities are run effectively and efficiently and continue to add value (Agwu, 2014, p 73). In fact, enterprises need a supportive and enabling environment that is characterized by the existence of open, predictable non- discriminatory markets and a well-governed economy .Also, for the development of any sustained enterprise; there are basic conditions that are vitally important. Essentially, this entails the broad social, economic, political and environment context. These broad conditions provide a framework for the creation of wealth. These conditions are necessary in fostering the growth of enterprises (Levin, 2002, p 67). Although these parameters themselves are not sufficient to create wealth, the positive relationship that exists between them and enterprise growth provides a basis for discerning some important principles.
The structure of political and civil life is evidently an important determinant of economic growth and sustainable enterprise. In perspective, good governance which entails respect for human rights, freedom of expression, gender equality and effective mechanisms for social dialogue provides sound grounds for the development of sustainable enterprises (Schmitz, 2004). Basically, the government has a very significant role to play in the growth of sustainable enterprises. For governments to ensure that sustainable enterprises flourish, transparency and due process in making of policies is basic (Agwu, 2014). More so, governments ensure that tax revenues are channeled back into the economy in form of productivity. This implies that the efforts of the governments are reflected through investments such as physical infrastructure and in human capital. In addition to that, the efforts become evident when there is public order and security as well as appropriate stewardship of the natural environment. The factors are undoubtedly likely to create the perfect social –economic conditions for sustainable enterprises to flourish (Levin, 2002, p 19).
There is sufficient evidence to postulate that enterprise is significantly constrained in the economy where property rights are not significantly defined. When the rights of owners of property whether intellectual or material, are not guaranteed they become reluctant to invest further (McIntyre, Ivanaj and Ivanaj, 2009, p 63). On the other hand, potential new entrants to the formal market are forced to disguise their activities and still proceed doing their business in the informal sector outside the boundaries of decent work. More so, equity and inclusion in the social aspect are significant essential conditions for sustainable enterprises. Indeed, when there is inequality of assets and opportunity, the ability of less fortunate people in the society to invest and participate in the growth of the economy is hindered (Levin, 2002, p 96). High levels of inequalities in income weaken the impact of poverty reduction and can as well undermine the ability on social cohesion required for sustainable enterprise growth. Undoubtedly, Social inclusion regardless of whether it is based on ethnicity, gender or any factor is critical strengthening the potential for sustainable enterprises.
The state of the economy has significant implications on the sustainable enterprise. The macroeconomic policy of the country and the economic performance as whole has great influence on the enterprises sustainability (McIntyre, Ivanaj and Ivanaj, 2009). As it is generally accepted, the growth of the economy is a necessary condition for poverty reduction and development. Moreover, it is as well accepted that enterprises are at the center of economic growth and play a fundamental role in ensuring growth and development (Canela, 2006, p 228). There is likely to be more increased potential and scope for the establishment and development of sustained enterprises where the government ensures that people are healthy and well educated`. Similarly, the pattern of growth in any economy pays a significant role in ensuring growth and sustainable development of enterprises (Tomecko and Kolshorn, 2011). Growth becomes a major contributor to the formation and development of sustained enterprises if it is balanced (Birla, 2014, p 93).
Sustainable enterprises are as well brought about through the convergence of parameters that enhance the competitiveness of such enterprises. Essentially, this is predicated on the state of the economy and how the management of such an economy is structured (Shinohara, Fisher and Hoselitz, 2008, p 39). Governments and central banks ensure that growth is maximized while maintaining inflation and employment at low levels (Vargas, 2000, p 180). The principal instruments for these are monitoring the interest rates and the management of money supply through monetary policy. How the government manages the economy is a key factor in ensuring growth in higher levels of investment growth and sustainable enterprises success (James, 2010, p 95). In perspective, it is not possible to develop sustainable enterprises without addressing the constraints on the demand side. The inclusive growth and development is enhanced by a formulation of a strategy, which focuses on the dynamics inherent in the domestic demand as well as the external markets (Davila, Epstein and Shelton, 2007, p 185). Therefore, in trying to stimulate demand, it becomes important to ensure that dynamically growing sectors are encouraged through policies that strengthen the connections and linkages with other parts of the domestic economy (Miles, 2009, p 103).
Moreover, the natural environment is a basic aspect to consider in the development and growth of a sustainable enterprise (Roberts and Tribe, 2008, p 73). Global environment challenges are addressed which entails climate change and the depletion of natural resources (Davila, Epstein and Shelton, 2007, p53). Without the sustainable stewardship of the environment, the possibility is that the existence of some countries would be threatened. Furthermore, with increased pressure on natural resources, there is a possibility that mounting completion on the use of these resources may result to increased corruption. Therefore, the environment is a major player in the creation of opportunity for sustainable enterprises and much concern is placed on the sustainability of the environment itself (Birla, 2014, p 273). Conclusively, the basic conditions provide an opportunity for sustainable enterprise development and therefore much emphasis placed on such conditions to foster success (Fratianni, Savona and Kirton, 2003, p 94).
Sustainable enterprises operate in ever changing complex economic and social systems. In these systems they are subject to commercial and economic pressures from all stakeholders in a market. The enterprises play significant roles in the society which explains why their sustained development is a significant aspect. There is increased attention focused on the role of business in the society (Agwu, 2014, p 75). Conceptually, this is focused on the fundamental message of sustainable development. This roots from the fact that economic growth, environmental protection and social cohesion goes hand in hand. The primary contribution of business in helping to deal with the multiple problems of sustained development, and decent works rests on the growth and development of viable enterprises (Levin, 2002, p 195).
Sustainable enterprises contribute to economic development through the provision of goods and services, which are created following the ethical standards (Desai, 2009, p 73). With increased awareness of the close interrelationships between the social and corporate development, the developed enterprises are continually creating sustainable societies through business activities (Buckley, Salazar and Henriques, 2009, p 106). These activities comprehensively reflect on economic, social, and environmental aspects. The development of sustained enterprises in an economy enhances infrastructural development especially into the areas in which they operate. Several enterprise developments include the development of infrastructure as one of their core aims. This is either in form of roads, energy supplies or energy (Horswell, 2009, p70). In essence, sustained enterprise development in water projects includes irrigation systems, water access schemes and boreholes. These projects reflect an increment in the local private investment linked to such projects. More importantly, these infrastructural developments lead to sustained benefits for the societies that consequently improve transport, sanitation, communication networks, and health. The infrastructural projects and development associated with sustained enterprise development give rise to direct economic benefits to an economy of any nation. For instance, for the improvement of access to water for economies has positive effect. In particular, this includes labor productivity and school attendance, which are beneficial in the growth and development of any economy (Audretsch, 2001, p 83).
Sustained enterprise development contributes to economy of any nation through increased income among the citizens (Lessem, 2006, p 77). The increased income comes as result of a variety of factors. In fact, the factors include a greater variety of businesses, which increase the available income for the individuals and organizations (Fatoki, 2014, p 84). Furthermore, the increased income also is in form of higher yields. The higher yields may come about from improved production methods due to innovation and enhanced creativity. Consequently, the increased income is applied for the growth and development of the economy in the sectors requiring improvements and focus through mobilization of resources. Furthermore, the developments of sustained enterprises contribute immensely to the sustainability of any economy through creation of job opportunities. The labor market is tightened particularly the lower waged and the lower skilled employees this sustainability is both in the short and in the long term (Manu, 2002, p 89).
In the development of sustainable enterprises, corporate social responsibility has been an important factor. Corporate social responsibility encompasses taking responsibility as a company for the issues affecting the society as a whole (Levin, 2002, p 89). Corporate social responsibility has played significant roles in the success of business enterprises as taking care of the society and other stakeholders reflects increased productivity and in return improved financial performance which results to success of the business enterprises in the long term. Many enterprises with the goal of sustainability are considering corporate social responsibility as a matter of credibility, which definitely has positive impacts on the business enterprise in the achievement of the sustainability goal.
In conclusion, Sustainable enterprises have positive implications on the growth of any economy. This growth comprehensive as social, economic and environmental factors are taken into consideration. The government and other stakeholders should coordinate in giving enterprises with goals oriented to sustainability support. Consequently, immense economic growth will be evident in such an economy as such enterprises contribute immensely in the growth of any nation.
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