20 004
Examensarbete 15 hp
Juni 2020
A Case Study of Five Young Entrepreneurs’
Perspective Regarding Sustainability Implementation
in the Food & Beverage Business
Teknisk- naturvetenskaplig fakultet UTH-enheten Besöksadress: Ångströmlaboratoriet Lägerhyddsvägen 1 Hus 4, Plan 0 Postadress: Box 536 751 21 Uppsala Telefon: 018 – 471 30 03 Telefax: 018 – 471 30 00 Hemsida: http://www.teknat.uu.se/student
Abstract
A Case Study of Five Young Entrepreneurs’
Perspectives Regarding Sustainability Implementation
in the Food & Beverage Business
Sherly Basuki
Nowadays, businesses are considering implementing sustainability and using it as a strategy. Many corporate are focusing on the
sustainability of their business, hence how do small businesses or entrepreneurs approaching sustainability? Is sustainability essential for them as well? This study focuses on young entrepreneurs' perspectives towards sustainability implementation and their motivation on opening a business in the F&B industry. The young entrepreneurs' backgrounds, beliefs, and characteristics will influence their perspectives on sustainability implementation.
The aim of this study is to know young entrepreneurs’ perspectives on implementing sustainability in the F&B business. This study uses a qualitative research method and focuses on five young entrepreneurs from Indonesia and Malaysia. The theoretical framework is targeting the F&B industry, entrepreneurs' actions in the business,
sustainability as strategy, last but not least sustainability, and business. The data collection uses structured interviews and qualitative interviews. The result of the study is shown as the combination of theoretical frameworks and interviews; thus, it was divided into young entrepreneurs' actions in the business and perspectives of sustainability implementation.
20 004
Examinator: Ulrika Persson-Fischier Ämnesgranskare: Göran Lindström Handledare: n/a
Table of Contents
1. Introduction 1 1.1. Statement of Purpose 2 1.2. Research Questions 3 1.3. Background of Study 3 2. Theoretical Framework 42.1. Sustainability and Business 4
2.2. Implementing Sustainability as Strategy in the Business 7
2.3. Entrepreneur in the Business 10
2.4. Food and Beverage Industry 13
3. Method 14
3.1. Research Design 14
3.2. Research Approach 15
3.3. Data Collection with Interview 16
4. Result and Analysis 17
4.1. Entrepreneur in the F&B Business 18
4.2. The Perspective of Sustainability Implementation as a Problem 22
4.3. The Perspective of Sustainability Implementation as an Opportunity 24
4.4. Sustainability Implementation and Profit 26
4.5. Obstacles in Implementing Sustainability 28
5. Discussion and Conclusion 29
5.1. Discussion 29
5.2. Conclusion 32
6. References 34
7. Appendix 37
7. 1. Interview Questions 37
7. 2. The Participant Story: Coffee Shop, Melisa Stevia Legi 37
7. 3. The Participant Story: Cafe, Sylvester Boo Jun Liang 39
7. 4. The Participant Story: Online Snack, Suryany Puspita 40
7. 5. The Participant Story: Health Catering, Amira Sanad 41
1. Introduction
As sustainability becomes popular, it arouses a curiosity about the effect of its implementation and positioning in the business. It will impact the internal and external sides, or even both sides at a time. Through these impacts, it is interesting to find out profoundly about the perspectives of business owners. As a result, this perspective leads to some questions; How do they think about sustainability in the business? How do they feel about implementing sustainability? Will they believe implementation brings more profit?
The tourism industry has been a money maker providing significant impacts on the global economy. Each year, the number of tourist arrival is increasing widely. Based on the World Travel and Tourism Council (WTTC), there is a 3.5% growth for tourism industry in 2019, bringing the contribution of US$8.9 trillion to world’s GDP (WTTC, 2019). In tourism industry, hospitality plays a big part, valued for $7.17Tr in 2016 (Sehnaoui, 2016). Since hospitality industry is abroad, this study focuses on the food and beverages (F&B) industry.
The food and beverage industry is essential in the hospitality industry, which combines
goods and services. In this industry, their goods are mostly food-related which is highly
consumed everyday. In 2018, the food and beverage industry generated sales for $11.3 billion and approximately 43,200 jobs in the sector (go2HR, 2018). This sector of business has a significant impact on tourism. For the F&B industry, running a sustainable business might be a challenge. Thus, this industry has its part in delivering a sustainable concept to the people. The relationship between F&B industry and sustainability is satisfying to look into since F&B industry's consumption, uses, and wastes have some negative impacts on our environment.
As a focus group in this study, an interview is performed to five young entrepreneurs owning their first businesses in the F&B industry. These five potential young entrepreneurs are between 25 - 35 years old ,which are still considered as young adults. The characteristic of young
adults tends to be bold, eager to learn, and brave to try new things. At such an early age, some of them want to achieve material success, which can be one of their motivations for becoming an entrepreneur. Being ambitious in achieving material success, they might not think or even consider sustainability in the F&B business.
On the other hand, some young entrepreneurs value sustainability in their business and
eager to have it as business core value. Moreover, these people have an awareness of
sustainability as a long term goal and wish to improve their business. Hence, it is fascinating to focus the study on young entrepreneurs and their perspectives towards sustainability and its implementation in their business. Furthermore, any small actions performed by the entrepreneur to implement sustainability can bring positive impact to the overall F&B business.
The F&B businesses are operating in Indonesia and Malaysia, Southeast Asia. This subregion of Asia is the place where the F&B industry grows and constantly innovates to keep up with various and changing trends. Moreover, the culture of using plastic containers, which is not sustainable, is high and is inseparable from the food consumption in both locations. It is a
common courtesy to have plastic containers, cups, and bags for any takeaway foods and
beverages. Therefore, to look deeply at how young entrepreneurs handle this situation and to connect with their perspectives in sustainability implementation will generate an impressive result.
1.1. Statement of Purpose
This research focuses on implementing sustainability in the F&B business. The primary goal of this research is to know the perspectives of young entrepreneurs. Besides, the interest of this study is to find out their understanding of sustainability and their motivation, based on the young entrepreneur’s perspective, in deciding to implement sustainability into the business. Meanwhile, this action could bring them any risk, but they still bravely choose sustainability implementation in running the business.
Not to mention, it is the first business that young entrepreneurs run in the F&B industry. Thus, their action towards the F&B business can be concerned on material success or sustainability. Since the F&B is their first business, it is important to understand the business plan in reaching their goals, including the decision of whether or not to use sustainability-related actions at the beginning of their business. Also, another aim of this research is the understanding or knowledge of starting and developing the F&B business.
1.2. Research Questions
To conduct this research and remain on course, the research questions are formulated as follows:
● How did the young entrepreneurs in F&B industry start and develop their businesses? ● What are young entrepreneurs' perspectives and understanding regarding sustainability
implementation as a strategy in F&B business?
● How do young entrepreneurs' perspectives in implementing sustainability have a
correlation to financial profit?
1.3. Background of Study
Hospitality plays a big part in the tourism industry, and most of the current tourists depend on Food and Beverages (F&B) during their vacation. The F&B industry plays a big part in delivering a sustainable concept to the people, and this industry has been using many resources that may harm the environment. When the F&B industry, as a business, can implement sustainability to its operation, it is interesting to look into a further research.
This research will provide a better understanding of the perspectives of young
entrepreneurs towards sustainability as it has become an important element nowadays. Some areas will be focusing on the F&B business, young entrepreneurs’ point of view towards sustainability, and the implementation of sustainability as a strategy. Moreover, this study will analyze the effect of sustainability aspects towards the young entrepreneurs’ actions in the F&B business.
Sustainability has been defined as a necessity from the present generation without
compromising the ability of future generations to meet their own needs (Epstein and Buhovac, 2014). It is interesting to dig up if we put our position in F&B businesses’ perspective, while this business is the opposite of sustainability and always be expressed as a negative vibe (Blowfield,
2013). To combine both negative and positive sides, something needs to be changed or
displaced. Furthermore, negativity can evolve into something positive because implementing
sustainability will gradually bring good results not only for business but also for customers and the environment.
Implementing sustainability in the F&B business is used as a strategy to avoid adverse effects on people and our ecosystem (Borglund et al., 2017). On the other hand, it also increases
natural resources for the future. According to Epstein and Buhovac (2013), the demand for
implementing sustainability in the F&B business is urgent due to; 1) Regulation from the government, 2) Positive reputation and improve the community, 3) The power of cost and revenue, 4) Social and moral responsibility.
Implementing sustainability as a strategy can help to achieve a sustainable business, and one important key is to make sustainability as primary value (Borglund et al., 2017 & Epstein and Buhovac, 2014). While the F&B business has sustainability as the core value, young entrepreneurs can integrate this into decision making and day-to-day operations. Thus, eventually, it will bring success to overall business.
2. Theoretical Framework
Since this research focuses on sustainable implementation in F&B industry and young entrepreneurs, all theories and concepts related to the research are prominent to be discussed. Firstly, the explanation of sustainability and business theories can bring strong points of each aspect and the purposes of cooperating both sustainability and business. Next, the implementation of sustainability in the F&B business as the strategy is used as the premise. This section will focus on the strategic way of implementing sustainability in the F&B business. It is followed by the description of entrepreneurs' actions toward the F&B business, including their actions before opening any F&B business. Finally, a brief theory about the F&B industry connected with sustainability.
2.1. Sustainability and Business
The idea of sustainability is closely related to the environmental aspect, and it started to get famous in the late 1980s due to environmental issues and the impact of economic development (Page, 2019). As Dresner (2008) said, sustainability becomes essential because it is
more powerful rhetorically for being environmentally friendly. Neglecting the responsibility to the environment leads to the perception that people disregard the future. In 1987, sustainability and sustainability development became essential and well known due to the report of our common future by the World Commission on Environment and Development (Dresner, 2008).
As for now, we know sustainability as the ability to meet the present's necessities without jeopardizing future generations' ability to fit their needs (Evans, 2019). However, Blowfield (2013) defines of sustainability as a long-term relationship between natural capital and its contamination in corporate responsibility. At the same time, sustainable development's meaning can lead to the aim of integrating the environmental perspectives into the world of economics and carefully balancing it (Dresner, 2008). Sadly, the topic, practice, and theory or three pillars towards business are highly debated (Schaltegger and Lüdeke-Freund, 2013). Hahnel (2012) introduced the precautionary principle, which empowers decision-makers to utilize precautionary
measures when scientific evidence about an environmental or human health hazard is
unpredictable, and the stakes are high. With this theory, Hanhnel (2012) said that when the fundamental is still uncertain and full of risk, the best way is to be cautious.
On the other hand, business is often captured as the opposite of sustainability because there is no answer on how sustainability can bring profit, how managing social activities and engaging the environment can contribute to the F&B business in economic success (Schaltegger and Lüdeke-Freund, 2013). There are some issues on whether or not economy is environmentally sustainable, or it destroys the environment.
"If natural resources are used to increase economy quickly and leave nothing for the future, it is inefficient. If the future of natural resources were used to fulfill present economy, it would not achieve intergenerational equity. Moreover, if we cut down any biodiversity and replace it with only one species, we have destroyed the variety," by Hahnel (2012).
According to Blowfield (2013), it is true that business is the criminal in sustainability because if a commercial enterprise rises their wealth. The business is highly in demand either as goods or services to increase economy. As big companies gain their power, they achieve their profit by exploiting nature and producing more waste. It implies that they take the environment
for granted. Furthermore, according to Blowfield (2013), mostly big corporations with large production and consumption focus on successful business which cause harm to our environment.
Small businesses' main goal is to stay alive and be profitable. Then, will small businesses use sustainability as a business strategy? According to Nadim and Lussier (2010), there is no proof that small businesses need sustainability or they can harm natural resources. However, small businesses can develop sustainability as a business foundation when they integrate with local communities (Nadim and Lussier, 2010). Small businesses and local communities need each other to achieve competitive advantages and long term success in sustainable businesses. Moreover, how small action towards sustainability in small business, it still produces positive impacts on a better world (Nadim, and Lussier, 2010)
Sustainability actions towards business bring such a dilemma yet important. Hence, it is necessary for the F&B businesses to take responsibility in environmental pollution, biodiversity, and resources for future generations (Borglund et al., 2017). Blowfield (2013) introduced the five capitals model (Figure 1) of sustainability, which should be applied in a sustainable business. The model is used to understand sustainability development in a business. Each capital, in this model, is necessary elements in a business to deliver the products or services, which will lead to success and growth in profit.
Figure 1: The Five Capitals Model by Blowfield (2013).
According to Binns (2018), in the five capitals model, there is Natural Capital, which is natural resources needed by the business. The second is Human Capital, which is people with skills, health, and knowledge. Social Capital, which is linked with human capital, such as
relationships, communication, and networking, which lead to developing the business to work more efficiently. Manufactured Capital is a flexible, innovative capital that can be used to produce the product, for example, buildings, transportation, and machines. Lastly is Financial Capital, which covers any assets. Using this clear model can bring the effectiveness of sustainable development to the business.
Investment towards sustainable business means its action has financial burdens, at least in the short period; however, its success can be achieved as a long term goal (Müller and Pfleger, 2014). Moreover, Borglund et al. (2017) said that the business needs to expand or change the current model or theories to work with sustainability, even though it requires specific prices. According to Schaltegger and Lüdeke-Freund (2013), there are three perspectives on sustainability in the business:
1. The business is contributed to sustainable development.
2. By doing good in environmental and social activities can bring some effects on the economy.
3. If the business's importance is sustainability, it focuses on the relationship between environmental and social management and economic success.
A sustainable company is a business which can implement sustainability not only in operation but also through their supply chain as well (Willard, 2009). There are five areas to focus on sustainable business: health, wealth, earth, equality, and trust (Nadim, and Lussier, 2010). A mutual connection between each area can bring profitability. Therefore, sustainable business should be concerned about doing good for the environment and social aspects in a long term goal.
2.2. Implementing Sustainability as Strategy in the Business
Since sustainability and business keep evolving, there are various initiatives for businesses to be sustainable. The business should add financial performance to achieve perfect harmony of sustainability in environmental, social, and economic. However, there are challenges
in implementing sustainability as a business foundation and combining sustainability
implementation with financial performance into day-to-day decision-making (Epstein and Buhovac, 2014).
If we look into it, a business will need a financial goal. On the other hand, there is a sustainability relationship between 3 pillars (environmental, social, and economic). Consequently, it becomes a competition between short term and long term benefits. As Müller and Pfleger (2014), to implement sustainability in the business, the economic dimension should be treated as unique. The economy is one of three pillars and an achievement of a successful business. Thus, Borglund et al. (2017) have mentioned a concept called Triple Bottom Line (TBL), which makes a business focus on their responsibility to the environment and social rather than the quantities of products sold.
According to Epstein and Buhovac (2014), to implement sustainability in the business, there is a cost that needs to be paid, and this cost is continuously changing. Due to uncertainty in the sustainability movement, it is challenging to implement sustainability as an initiative strategy. Hence, implementing sustainability in the business can bring either harmony or conflict (Müller and Pfleger, 2014).
Implementing sustainability in a business can be a focus on business growth and a competitive advantage on the market. Choosing sustainability as the strategy is beneficial to be distinct from other businesses. As a consequence, the strategy should be authentic and unique in each business to give an energetic vibe and differentiate from the competitors.
A better understanding of implementing sustainability actions to the business can
increase financial performance and sustainability value (Epstein and Buhovac, 2014). Epstein and Buhovac (2014) also added, there are two choices to implement sustainability; one, a hard system which is a formal strategy including structure, performance, and evaluation, and two; a soft system which is an informal one that focuses on culture and people. The important thing in implementing sustainability as a strategy is to make it a core value and commit to sustainability.
At first Borglund et al. (2017) mentioned that there is no transparent model on sustainability implementation as a strategy, and it depends on the matureness of business. Thus, Borglund et al. (2017) introduce a sustainable framework in figure 2. This framework can be used to identify the strategies and activities of a business to be more contributed to sustainability.
Even though implementing sustainability has some cost and risk, this framework focuses dominantly on the positive impacts.
Figure 2: Sustainable Value Framework by Borglund et al. (2017).
As depicted in figure 2, Borglund et al. (2017) have few options for strategies that can be implemented in the range of time short until long term. Therefore, to implement sustainability in the business, it can bring some contributions in increasing value, new markets, attractiveness to clients, motivation, committed staff, lower risks, and more capital (Borglund et al., 2017).
Based on Borglund et al. (2017), there is an example to show that sustainability can
increase profit. Since 2000, Vasakronan, a Swedish largest landlord, has been working on
implementing sustainability as its value. Gradually, they use renewable energy, increased recycling, decreased waste, and have their buildings certified as environmental buildings. From
the company’s experience, the outcome has impacted positively their finances, which is a
decreased cost and increased profit.
Implementing sustainability initiatives in the business makes a result of a transformative change that can bring positivity and attractive marketing strategy on a global scale. According to Hult et al. (2018), becoming sustainable can bring sentiments to business because they are doing something good. With reference to Hult’s statement, sustainability offers positive and
meaningful activities that can influence customers’ behavior as well. Implementing sustainability to the products should be treated as a valuable aspect (Choi and Ng, 2011).
Sustainability is transformative and essential, which is exciting to work. Implementing sustainability maintains a positive vision for the future. It can be started by setting up a goal and gathering sustainability information as the foundation (Robertson, 2014). By implementing sustainability, it means ready to make some changes, and any small change can lead to a significant impact. Hence, it makes sustainability visible in the business. According to Nadim and Lussier (2010), it is beneficial for all businesses to have sustainability implementation because it has a good sense and increases the possibility of long term success. Thus, there is a correlation relationship which by implementing sustainability as a strategy can bring more profit in a business.
2.3. Entrepreneur in the Business
The term entrepreneurship and entrepreneur have caught many people's interest due to
sudden popularity. However, what is the real meaning of these words? According to
Karatas-Ozkan et al. (2014), entrepreneurship is identified by two sections which are (1) complex, dynamic, and developing processes, and (2) the interaction between actors, processes, and contexts. Thus, in terms of academic background, entrepreneurship has a close relationship
with a business study (Hébert and Link, 1989). Entrepreneurship is broad and varied;
nevertheless, it has a special meaning in each context. Therefore, entrepreneurship usually has a meaning of actions which take risk and creativity into a new business or reviving an existing business (Hébert and Link, 1989).
Entrepreneurs are pictured as independent for their production and searching for the opportunity (Read, Sarasvathy, Dew, and Wiltbank, 2011). This person has ethical decision making, courage, and has a good perception of opportunities. Perception, courage, and action are the essential elements of the entrepreneur (Hébert and Link, 1989). Furthermore, entrepreneurs need to do many roles and faces for their business. According to Hébert and Link (1989), they have identified at least twelve entrepreneur roles, which can be divided into two types. One is a static entrepreneur performing their functions as financial support, manager, owner of the
business, and employer of production. Meanwhile, a dynamic entrepreneur plays the courageous parts in turn risk as uncertainty, such as an innovator, decision-maker, leader, organizer, contractor, investor, and distributor of the use of resources. A static entrepreneur is a passive entrepreneur because they repeated their actions and implemented their previous techniques, while a dynamic entrepreneur is an influential figure (Hébert and Link, 1989).
Becoming an entrepreneur is often defined as a creator of opportunity who can bravely risk their time, money, and reputation. Entrepreneurs always face uncertainty in the business, and it can happen from the beginning of bringing the supply and demand to the market (Read, Sarasvathy, Dew and Wiltbank, 2011). Thus, risk can rise in the market and it connects with changes of estimation scenarios. According to Read, Sarasvathy, Dew, and Wiltbank (2011), to solve risk in the business, decision making helps to calculate the specific outcome by using existing information and mistakes. In other words, the entrepreneur's action is by using proactive measurement to manage risk and prediction as defensive tactics in business.
The entrepreneur has two ways to overcome unpredictable, risk, and uncertainty, which are decision making and principles of effectuation. Read, Sarasvathy, Dew, and Wiltbank (2011) said that principles of effectuation is a logic to approach, adopt, create, transform and move forward from uncertainty. Effectuation logic has four principles which are; start with means, set affordable loss, leverage contingencies, and form partnerships (Read, Sarasvathy, Dew and Wiltbank, 2011).
Entrepreneurs can develop their business idea based on the opportunity. However, to plan this idea, they need a business plan to manage the business. With a business plan, they can strengthen their ability to deal with problems and changes. To start a business plan, entrepreneurs
can use the Value Proposition Canvas (VPC). The VPC can help entrepreneurs to know the
challenges and opportunities. In the VPC (figure 3), there is a customer profile to understand the customer and a value map/ value preposition to describe the entrepreneur idea (Osterwalder, Pigneur, Bernarda and Smith, 2014).
Figure 3: The Value Proposition Canvas.
The Customer Profile contains customer jobs, pains, and gains. According to Osterwalder et al. (2014), customer jobs are when the customer tries to perform or complete something, look great or gain status, feeling enjoyable or secure, and purchasing or consuming behavior. Customer pains is defined as anything that prevents or bothers customers before, during, and after trying to get the job done. Pains can be undesired outcomes, obstacles, and risk which could go wrong or any negative impact. Lastly, customer gains are something beyond what customers expect to get.
Osterwalder et al. (2014) introduced Value Proposition as the company's side, which includes Products and Services, Pain Reliever, and Gain Creators. The Products and Services refers to physical or tangible, intangible, digital, and even financial objects. Pain relievers indicate the products or services which can ease customer pains. Gain Creators are a good outcome and benefits to customer expectations.
This tool makes value prepositions visible and tangible; hence, it works for a start-up entrepreneur in new business and existing companies (Osterwalder et al., 2014). It can be used continuously to invent and improve the product to meet customer profiles. This is the start for entrepreneurs to establish their idea into a business. Thus, with this model, entrepreneurs can seek a fit which customer important jobs were eased, the pain was relieved, and receive essential gains (Osterwalder et al., 2014).
As entrepreneurs are individuals, their actions towards sustainability will have some impact even though it is a small action. Their actions on implementing sustainability in a business can make sustainability visible to others, and an excellent way to interpret
sustainability. Thus, the sustainability in a business can bring some advantages (Nadim, and Lussier, 2010).
Entrepreneurship and sustainability have their responsibility in environmental and social
aspects. Entrepreneurs can contribute their action toward sustainable development in the
business. According to Nadim and Lussier (2010), when entrepreneurship meets sustainability, there is a new field of study called sustainable entrepreneurship. The entrepreneur focuses on improving social and environmental sustainability as an opportunity while gaining economy. Therefore, sustainability can be a strategic or purpose in the business.
2.4. Food and Beverage Industry
Tourism is known as the use of leisure time for people to visit different places, destinations, and locations during their holidays and trips (Page, 2019). Tourism has been
overgrowing each year, and according to The World Travel and Tourism Council (WTTC),
travel and tourism have been actively generated vast amounts for the economy. A concern was raised from a sustainable point of view due to expanding business in the tourism industry.
Hospitality is the essence of tourism, which involves the consumption of food, beverages and accommodation (Page, 2019). The F&B industry is growing because of the need to eat during vacation or holiday and is essential in tourism because of its attraction of destination’s image. Since there is a need in the market, there are a variety of food and beverage businesses. The growth in this industry is due to the increasing population, and in 2022 there is an
expectation for this market to grow more and reach $5 trillion sales (Food And Beverage
Services Global Market Report, 2019). Asia-Pacific was the largest to have sales by 45% of the market in 2018 (Wood, 2019).
According to Gossling (2012), as the population grows, the demand for foods is
increasing, which causes pressure on production. On the other hand, oil, land, and water prices
are increasing, which makes the price of production more expensive. Thus, climate change
pushes production in vulnerable situations in agriculture. In this situation, what can we do for a
better future? Food consumption is everywhere and limitless. While the production and
consumption keep increasing, it causes more waste. In the U.K, food and drink waste is 14 million tonnes per year (Gossling, 2012).
Since sustainability is getting well known and higher demand, food production will need to catch up with this trend and match with customer expectations. According to Gossling (2012), there are three initiatives in implementing sustainability in the food industry. The first initiative is having a good decision maker for sustainability in food consumption. The second is increasing efficiency. The last initiative is creating a purchasing strategy that can influence other food industries. Gossling (2012) also said that the critical aspects of this industry is to achieve sustainable development in food production and consumption.
Sustainability in F&B industry is known to reduce environmental damages from
individual products, agricultural, and industrial. These include farming, agricultural sector, distribution, storage and preparation, services, household activities, disposal and recycling, and resources (Gossling, 2012). So, to reach sustainability, the industry should optimize food production and consumption without endangering natural resources and ecosystems.
3.
Method
This research aims to know about the young entrepreneur's perspectives of sustainability implementation in their F&B business and correlation to profit. This chapter explains the method of data collection and information about approaching the correspondents.
3.1. Research Design
This research is conducted with a qualitative method to know the young entrepreneur's actions and perspectives of implementing sustainability in the business and their point of view about sustainability as a strategy in achieving profits. According to Bryman (2012), qualitative research is a correct approach to studying the perspectives, critical point of view, and significant orientation. Moreover, the qualitative method helps the concept and theoretical elaboration to emerge the data collection. Even though it is unstructured, a qualitative method is the best way to concern people's behavior and the meaning of their actions (Bryman, 2012).
According to Yin (2011), the simple way to know the meaning of research design is to use it as a logical plan. This plan will connect research questions, data collection, analysis strategy, and aim at finding which answers research questions. Thus, this plan supports the study to be more valid and accurate. Yin (2011) also said that qualitative research does not have a fixed model or design for each experiment, making the design for a qualitative method customized to suit the study. Eriksson and Kovalainen (2016) agreed that the qualitative method does not follow a strict model or design; thus, it allows for more variety and surprises in the research process.
The research design of this study facilitates a deep understanding of the participants’ view and perspectives. Moreover, the validity of the data is meaningful and needs to be collected properly from the participants. Validity in this study is not limited to specific answers or findings; however, it is a description from participants (Yin, 2011).
Since this research is about young entrepreneurs’ perspectives, comparable different aspects can be obtained. Yin (2011) introduced a rival explanation which is suitable for this study. Furthermore, the interpretation from each point of view can be a challenge from another. These differences can be used as a strong point of the study process and bring out the exciting result of finding and analysis.
3.2. Research Approach
This research also takes part in multiple young entrepreneurs' businesses regarding business growth, development, and activities. Thus, this research is suitable to have multiple case studies as the research approach. The term "case" is directed to the focus of interest (Bryman, 2012), which is targeting young entrepreneurs in this research. According to Eriksson and Kovalainen (2016), a case study can be complicated and varied; however, it can bring the researcher a deep understanding of the data. The case study is valuable because it aims at understanding the case rather than a common justification (Eriksson and Kovalainen, 2016).
Due to this research focusing on multiple young entrepreneurs, a multiple case study research is used. Each young entrepreneur has background, perspectives, and goals. As Eriksson
and Kovalainen (2016) said, multiple case study is excellent in generating comprehensive and in-depth knowledge through multiple data resources.
3.3. Data Collection with Interview
This research uses multiple case studies as the research approach. Hence, an exclusive interview is needed to understand the participants' perspectives, which are emotionalist interview studies (Eriksson and Kovalainen, 2016). An interview activity with a phenomenological study should arrive at the heart of the matter and listen carefully to the description from the participants (Leedy and Ormrod, 2000, p. 153). Moreover, an interview can be about interaction and dialog between at least two people transferring information from the interviewee to the interviewer (Eriksson and Kovalainen, 2016).
The aim of using this interview activity is to know and understand deeply what young entrepreneurs think, feel, and hope by relating sustainability and their business. Therefore, the questions for the interview will be focusing on:
● The understanding of young entrepreneurs’ knowledge in sustainability and their point of view
● The information about the young entrepreneurs' situation and decision on implementing sustainability
● Opinion, feel, actions of young entrepreneurs in implementing sustainability in the business and connection to the profit
The interview is conducted with a combination of a structured interview and qualitative interview. While a structured interview is scripted, the qualitative interview is not strictly scripted (Yin, 2011). The structured interview is used as a guideline of questions, while a qualitative interview is performed to discover an in-depth understanding of the participants' actions, perspectives, stories, process, and experiences. The structured question is prepared (Appendix 7.1). Since the participants are located in different locations, the interviews were conducted via WhatsApp Call and email-interview.
3.4. Sampling Unit
The focus group in this research is 25 to 30 years old young entrepreneurs who start their own first business in the F&B industry. As they are still early with their new businesses, they can have different concerns and goals. Some of them are concerned with material success, while others have awareness towards sustainability in their business. Their perspectives of sustainability in the business can have an exciting result. The interview will take five young entrepreneurs with businesses based in Indonesia and Malaysia.
The young entrepreneurs are classified into two groups, which are money concern and sustainability concern. Among these groups, there are young entrepreneurs who started their own business and inherited the family business. Thus, some young entrepreneurs run the F&B business as their primary job, while others as secondary job. Five young entrepreneurs are owners of a coffee shop, a cafe, a private dinner, an online snack shop, and an online health catering. All of them are actively involved in their business. In this thesis, all of the young entrepreneurs are addressed by their code names.
4. Result and Analysis
In this chapter, the results from interviews are presented through different perspectives of sustainability implementation in the F&B business. Moreover, these perspectives are analyzed according to the theoretical framework and delivered narratively. The interview was conducted with five participants of young entrepreneurs. This section address all young entrepreneurs as their code names with information in figure 4.
Name of Young Entrepreneur
Business Name Codding Name
Melisa Stevia Legi, 29 Gedogan Coffee Shop Coffee Shop
Sylvester Boo Jun Liang, 29 Spice Vaganza Cafe Cafe
Suryany Puspita, 31 Hungry Hippo Online Snack
Amira Sanad, 30 Bibis Healthy Kitchen Health Catering
Hans Cristian, 28 August Jakarta Private Dinner
Figure 4: Coding name for the qualitative data.
This section is divided into five, which will lead to answering the research questions. The first section is entrepreneurs in F&B business, which is focusing on understanding entrepreneurs’ background, action, and decision making in the business. The second section is the result and analysis from the perspectives of sustainability as a problem. This section focuses on young entrepreneurs who seek material success and do not implement sustainability in the business. The third section is about implementing sustainability as an essential value in the business. The focus on this section is the young entrepreneurs who are concerned about sustainability and have been implementing sustainability in the business as an opportunity. The next section is sustainability and profit which focus on all young entrepreneurs’ perspectives and result in the F&B business. The last section refers to the obstacles that prevent young entrepreneurs in implementing sustainability in F&B business.
4.1. Entrepreneur in the F&B Business
As young entrepreneurs, they need to think about what they can do to be fitted in the customer jobs, pains, and gains as their business can produce a product or service, including pain
reliever, and gain creators (Osterwalder et al., 2014). Although all young entrepreneurs’
businesses are in the F&B industry, each young entrepreneur here solves the fit between the customer profile and the value proposition. The figure 5 is the value proposition canvas for the F&B business.
Value Proposition Customer Profile
Product / Services
● The F&B business (cafe, coffee shop, private dinner, snack online, and catering)
● Cooking ● Buy groceries ● Grind coffee beans
Customer Jobs Pain
Reliever
● Affordable price
● Delivery/ takeaway/ dine in ● Hassle-free
● Easy to order
● Cleaning up after cooking ● Do not have time to cook or
make coffee ● Do not have talent
Customer Pains Gain Creator ● Delicious ● Healthy ● New experience ● No more hungry
● Can taste good food or coffee ● Feeling fulfill
Customer Gains Figure 5: Value Proposition Canvas for the F&B Business.
From Value Proposition Canvas, entrepreneurs can decide their unique selling point and target market. The F&B industry is big and fierce; the entrepreneurs should have something unique that allows them to survive in this industry and differentiate them from other businesses. Each young entrepreneur, in this study, has their unique idea in the business as their selling point and target market (figure 6).
Young Entrepreneur Selling Point Target Market
Cafe Classic home style foods with
affordable prices
Family
Coffee shop Quality of the coffee Youngsters and Tourists
Online snack Easy to store and durable foods Medium income people
Health catering Healthy foods and environmental
friendly
People who are concerned for their health and want to lose weight
Private dinner Casual fine dining with open
kitchen experience
Middle to high income youngsters and adults Figure 6: Selling point and target market of each young entrepreneur.
Entrepreneurship has a meaning of actions which take risk and creativity into a new business or reviving an existing business (Hébert and Link, 1989). Like entrepreneurs who do this action, they are an opportunity seeker (Read, Sarasvathy, Dew, and Wiltbank, 2011). One of five young entrepreneurs inherited a family business, four of them opened a new business, and one of the businesses is a secondary job. All young entrepreneurs are the owners who manage their own business; however, their actions in business can be different. While one side is free to create their idea, the other develops the idea which has been given.
The F&B industry keeps increasing, which has many competitors, so how these young entrepreneurs can be still interested in opening their business in this industry. This is not an obstacle, as for online snack (Appendix 7. 4), “Since food is essential in daily life and people need to eat, this is a good opportunity to have a business with a large scale of the market.” On the other hand, coffee shop (Appendix 7. 2) see the opportunity from her father's coffee farm and
turn it into a business, “I calculate the cost to make a cup of coffee from the coffee beans that we have, and it turns out I can get 30%-50% profit from it, so why not?”.
“At first, working in F&B industry is just for fun, but after I go back to Jakarta, I get to know many people and gain connections from this industry. So, I feel motivated and realized that there is much potential to advance the F&B business in Jakarta”, Private dinner (Appendix 7. 6).
The F&B industry has a significant opportunity depending on which market the
entrepreneurs are playing. The health catering (Appendix 7. 5) saw an opportunity in Bali market, “At that time there were not many healthy caterers in Bali; thus, with my education background in Food Science and Nutrition, it can be my strong point to open this business.” The private dinner has the same situation, “We are the only one in Jakarta to have a private dinner where we cook in front of our customers, and while we cook, we can explain and socialize with the customer to feel more homey and friendly.”
While the entrepreneur who inherited the business, they do not come out with opportunity, instead they feel like an obligation.
“The first time I worked in my family cafe, I only thought that I wanted to develop more on dessert menus because it was my interest. After a while, I realized that I could not focus only on dessert, I need to know about managing the whole cafe and financing as well! So, in order for this cafe to survive, I pushed myself to learn the management and financing” said the cafe (Appendix 7. 3).
As Hébert and Link (1989), entrepreneurs need to do many roles, they do not stand as the boss, but they take other roles as well. Furthermore, according to Hébert and Link (1989), there is a static entrepreneur and a dynamic entrepreneur. All of the young entrepreneurs, in this research, represent a static entrepreneur and a dynamic entrepreneur . The coffee shop started her business from a small shop, and when it grew, she owned eight shops in total in 5 years. She is a dynamic entrepreneur who became an innovator of an idea for coffee caravan, decision-maker for any issues, leader for all the shops, organizer for any events, investor, and distributor of the
coffee beans. In contrast, online snack can be categorized as a static entrepreneur because she is the financial support for the business, manager, owner, and the one who makes the products. By looking at the description about the two entrepreneurs’ mentioned above, it is concluded that a static entrepreneur is more inclined to the small business which just started the business. Meanwhile, a dynamic entrepreneur, in this context, refers to a person who is ready to grow the business bigger with more responsibility.
To be an entrepreneur, they need to be ready for any risk. Read, Sarasvathy, Dew, and
Wiltbank (2011) introduced two ways to overcome risk, which are decision making and
principles of effectuation. Unfortunately, from five young entrepreneurs, none of them can be an example for the principle of effectuation (Read, Sarasvathy, Dew and Wiltbank, 2011). Decision making is a crucial step for the entrepreneur to build and grow their business and like Hébert and Link (1989) said, it has been a part of the entrepreneur’s role as well.
“My restaurant is still in the making; meanwhile, the legal document is finalized, I did not want to stop cooking for our regular customers. So, I found an opportunity and decided to open a private dinner in the apartment that we have. Thus, this idea is fun and gives a different experience to customers. Furthermore, by the time we open our restaurant, we still have our regular customers” (Private dinner).
In the beginning, the entrepreneur started with means (Who I am, What I know, Who I know) and interaction with people to get the ideas or goals (Read, Sarasvathy, Dew and Wiltbank, 2011). From the starting point of achieving their goal, entrepreneurs should have their process in overcoming risk, solving any issue, or generating new goals. Coffee shop knows her means, her academic background, her skills in the hospitality industry, and her father, who owns a coffee plantation. Thus, with interaction from her parents and some people in F&B industry, she can reach her goal to open a coffee shop and expand the business. “Once I knew how to manage the shop and get profit, I started to expand my business. I saved my profit and got a loan from the bank to open my next shop. I have a target to open a new shop every year.” After five years running the business, she had six shops in Bandung, one shop in Bali, and one shop in Manado. From the shops that she rented, she got an idea to have a caravan coffee shop, which is
cheaper rent. From the caravan, she got an idea for a coffee motor that uses motorcycles to go around selling coffee. So, every time she expands her business, she learns from her previous experiences and makes her more innovative to get a new concept of her business.
The business process can be different from the cafe because he needs to continue with what his family has and only needs to develop the business further. He does not have any desire to open a new shop; however, he has a goal to develop a pastry studio as part of the cafe.
“To survive in the market, I need to adapt to customer behavior and do what I can do. For example, for the lunch menu, I focused on the big portion. Now there is a trend of online food delivery apps, so I also register my cafe, and people can order through it” (Cafe).
The snack online has a different approach in the business since it is not her primary job. “Well, as for now, I open the business to get more income. As for the future, I will see which job can generate more money.” Since the business is still entirely new, she does not have a business goal yet because she is unsure if she can fully manage the business and abandon her primary job.
Each young entrepreneur has their action toward the business in the F&B industry. All of them see the opportunity to open their own business and deal it their way with a good judgment in decision making. To be able to develop a successful business, entrepreneurs have to play many roles, either as a static or a dynamic entrepreneur, which contributes to business development. They have to take action and make decisions thoughtfully to fit their situation.
4.2. The Perspective of Sustainability Implementation as a Problem
Blowfield (2013) said, business has been claimed as criminal in sustainability because of greediness to increase the economy. Hence, in small businesses, there is no proof if sustainability can bring profit (Nadim and Lussier, 2010). Online snack has agreed with this statement, “Currently due to limited budget for my business, I need to focus on getting more profit and use products with less cost. Meanwhile, in Indonesia, if you want environmentally friendly products, it is more expensive, and I cannot afford it!” Coffee shop added, “Plastic cups are much cheaper than paper cups, the price is 1:6!” Cost is taking part in the business, and it is crucial. The online
snack shop and the coffee shop have been struggling with cost issues in their business. The situation of planning to implement sustainability, which requires higher expense costs, makes them neglect sustainability.
An entrepreneur opens a business to satisfy the customer demand in the market, so customers are holders of business’s success. Without customers, the business will lose. Customer behavior in consumption is an important key to have sustainability implementation in the business. However, the business needs to be adjusted with this customer behavior.
“Unfortunately, the customers here in Bandung still depend on plastic cups and never bring their water bottle or tumbler for their coffee. If we do not use plastic
cups to serve them, we can lose our customers because other shops can give
plastic cups. So, we cannot stop using plastic cups” (Coffee shop).
Moreover, Online snack added that people’s awareness towards sustainability is low, “I have an idea to reuse plastic containers for the packaging; however, people think it is disgusting. They demand to have a new container, even though I explained that containers are washed properly.” As Dresner (2008) said, sustainability becomes essential because it has a tight relationship with being environmentally friendly. The awareness of sustainability or even to be environment friendly, in the area, has been ignored, and the knowledge about sustainability is distributed inadequately to the people.
These awareness and knowledge are linked with the competitors in the area. The coffee shop stated, “If we do not give a plastic cup to the customer, but competitors still use it, and even have a lower price, how can we survive in the market? The customer can walk away from our shop and go to the next door.” Many competitors are using plastic in their products, and they offer lower prices as well. This is the reality they need to deal with, and as Nadim and Lussier (2010) said, most small businesses prioritize to stay alive and be profitable. As a result, plastic issues, customer awareness, and competitors provoke both coffee shop and online snack to refuse the implementation of sustainability in the business.
“Why is it necessary to risk the business in order to be sustainable while the market is not ready, and the environmentally friendly material is way more expensive?” asked coffee shop.
According to Schaltegger and Lüdeke-Freund (2013), there is no answer to how sustainability can solve the cost or profit activities. Engaging the environment and social aspect can contribute to the business and bring success in the economy. “Implementing sustainability in the business is important to be honest, although, for me, I will prioritize others for the first place and sustainability in the business is like in 100th place.” coffee shop added.
Young entrepreneurs’ perspectives towards sustainability implementation in the business can be categorized as a problem in which it creates higher expenses, makes young entrepreneurs to work extra and leave their comfort zone. Both coffee shops and online snack prefer to reach their material status as their goal and fulfill the market demand without worrying any consequences. Thus, to have sustainability in the business might start from the entrepreneur’s awareness and heart. Their decision to refuse to implement sustainability in the business was also affected by various external factors; cost, consumer behavior, consumer awareness and knowledge towards sustainability, and competitors.
4.3. The Perspective of Sustainability Implementation as an Opportunity
Epstein and Buhovac (2014) always said that sustainability is a necessity from the present generation without compromising the ability of future generations to meet their own needs. Health catering has a deep understanding of it, “Sustainability is applying a system in all aspects, both business in the field (goods or services), public policy, law, and others that seek to minimize damage to the ecosystem and the environment.” Private dinner has his view as well, “Sustainability is wide. As in the F&B business, not only about plastic waste but also the production including the supplier, materials in the restaurant like ceramics, and the important part is our belief of doing good.”
Since health catering and private dinner have a good understanding of sustainability, it turns out that they have implemented sustainability in the business. The private dinner has built some connections. “When I was back in Jakarta and worked here, I met many people, not only chefs but also other people who can help build the F&B industry like farmers, fishers, and artisans. Furthermore, this is one of the reasons I want to develop further in the F&B business.”
This is the example of the social capital in which relationship, networking, and communication are vital in the five capitals model introduced by Blowfield (2013).
Borglund et al. (2017) also mentioned that the company should focus more on their
responsibility to the environment and social rather than focusing on products sold. “80% of our products are using local ingredients from local markets; moreover, we no longer use plastic containers,” said health catering. As for the social aspect, private dinner uses local artists to make the ceramics for his private dinner. He wants to support local artists rather than using manufactured ceramics, similarly with food ingredients in his business.
“I went to Lombok and Sumbawa to find fishermen who can supply me with their fish. However, I do not want to have fishermen who do the bombing method or use big nets to get the fish. I prefer the old fishing way, one by one, because I do not want to harm the ecosystem, and I can help local fishermen in terms of a job” (Private dinner).
The actions taken by health catering and private dinner, focusing on environmental and social aspects, bring connection with the statement made by Epstein and Buhovac (2014) about two choices to implement sustainability; hard system and soft system. In this situation, both the private dinner and the health catering are using a soft system which focuses on culture and people. Thus, a hard system is inclined to a business style development that implements sustainability into the structure, performance, and formal system of evaluation.
When entrepreneurs decide to have sustainability in the business, they are ready to implement it as a strategy. Borglund et al. (2017) have few options for strategies that can be implemented in the range of time short or long term, like in figure 2. Both of them are in the strategy of ‘Avoid Negative Environmental Impact’. They are currently focusing on consumption and waste from production. “We use glass bottles rather than plastic, and we have a buyback system in which we collect the bottles that we sold to customers and exchange them with discount vouchers. With this system, we can minimize our waste and increase our sales.” said health catering.
“The sustainability in my private dinner is focusing on the production side. For example, we use the fish that our fishermen caught, available veggies from our farmer, and do not use any imported ingredients. Therefore, we can minimize the waste of our food production” (Private dinner).
Investing sustainability in the business can bring its success and can be achieved as a long term goal (Müller and Pfleger, 2014). Thus, implementing sustainability in the business can bring sentiments into the entrepreneur because they are doing something right (Hult et al., 2018).
“To have sustainability implemented in the business, not only do we care about our environment and social issues, but there is a feeling inside my heart that I am satisfied by doing something good. Maybe it is hard to see the result now, and I am aware that its benefits can only be seen in the future, but it is worth doing” (Private dinner).
Health catering and private dinner have an understanding and awareness of sustainability. For this reason, their perspectives on implementing sustainability is to do something good for the environment and local markets. They do not have the business to be wholly sustainable but still implement sustainability on specific actions. Moreover, they are also aware that any small action can still bring positive results. Implementing sustainability in the business has created an opportunity for both health catering and private dinner because it boosts sales for health catering and improves creativity in cooking for private dinner.
4.4. Sustainability Implementation and Profit
It is hard to prove if sustainability implementation has some impact on the business’ profit. However, these young entrepreneurs have their perspectives towards this connection of sustainability and profit. Like Schaltegger and Lüdeke-Freund (2013) said, there is no answer on how sustainability can bring the cost or profit in the business and its success.
The situation of online snack and coffee shop, which stated that plastic container prices are lower than papers, makes them feel that sustainability adds more cost in expenses and not sure how it can turn into profit.
“If I change plastic cups into paper cups, I need to increase my coffee price. How many people will buy my coffee, which is more expensive than the usual price? If I have a rule; customers who want takeaway coffee will get an extra charge for plastic cups or paper cups, they will walk through my shop and go to other shops which can give them normal prices and plastic cups” (Coffee shop).
Meanwhile, the health catering and private dinner have different perspectives. Having an opposite statement to the coffee shop’s, the health catering believes that , “Once we use sustainability as our strategy in the business, it helps to boost our sales and marketing.” This statement is in line with one of three perspectives on sustainability in the business proposed by Schaltegger and Lüdeke-Freund (2013); if there are good performances in environmental and social activities, it will bring positive effects in the economy. However, private dinner did not agree if implementing sustainability can bring more profit and his perspective is to be prepared
for any consequences by choosing sustainability implementation and spare no excuse to run
away from it.
“Financial effects from sustainability cannot be seen in a short time, but more into the long term. While choosing to implement sustainability in a business, we choose to be committed and ready for any risk, including cost issues. The best way to deal with it, is by choosing correct decision of alternatives” (Private dinner)
Sustainability and profit are hard to prove, but all young entrepreneurs have their perspectives regarding the connection between them. Their perspectives on sustainability and profit are appealing, as a result. Their background, situations, and goals influence these perspectives. Therefore, cost issues, either negative or positive, will be faced whether they have implemented sustainability or not in the business. Like Müller and Pfleger (2014) said,
implementing sustainability can bring harmony or conflict. Thus, it can bring some contributions in increasing value, new markets, attractiveness to clients, motivation, committed staff, lower risks, and lastly, more capital (Borglund et al., 2017).
4.5. Obstacles in Implementing Sustainability
Implementing sustainability in the F&B business can have some obstacles that challenge young entrepreneurs. These obstacles, which are government, people awareness, and competitors, prevent young entrepreneurs from implementing sustainability or from being more sustainable in the business.
The government produces laws, rules, and regulations that people need to follow. As young entrepreneurs from Indonesia, they claimed that the government does not have any specific laws about waste management and environmental issues. This brings young entrepreneurs to be ignorant about sustainability. “The government only said that plastic waste is not good, but there are no strict rules or fine if we still produce plastic waste. So, why bother to change? If there is a fine from the government, I will not use any more plastics,” said coffee shop. Shockingly, the Bali area has strict rules about plastic waste. “Bali has a strict rule of banning any use of plastic containers and fines towards any violation of this rule, which reduces the use of plastics in this region. Therefore, people in Bali get used to live without plastic bags or containers,” said health catering.
In Malaysia, the government takes control of the hygiene and operation of F&B business. Every year they have an inspection to grade the business from A until D. Because of the government's clear rules in Malaysia, the customers are also accustomed to no-plastic lifestyle in the F&B businesses.
“Since the government has an inspection every year, I need to follow their procedure from hygiene until the operation process. It includes waste management, as well. Moreover, the region also has rules on no-plastic bags on certain days” (Cafe).
The next obstacle is people’s awareness of sustainability, which is connected with competitors. The information regarding sustainability is distributed inappropriately, hardly heard, and taught inadequately. Therefore, many people are unaware of environmental issues and still demand plastic bags or containers. Thus, it is linked to competitors’ awareness of sustainability. “It is hard to compete with competitors who are using plastic containers and lower prices,” said health catering.
The government, people's awareness, and competitors are obstacles that are linked together. If the government can distribute information and sustainability knowledge to the
people, awareness of sustainability is rising by reducing plastic consumption, and the
competitors can compete equally.
5. Discussion and Conclusion
5.1. Discussion
The research questions, in this study, focuses on young entrepreneurs starting and
developing their F&B business, young entrepreneurs’ perspectives on sustainability implementation as a strategy, and young entrepreneurs’ perspectives on the correlation between sustainability and profit. The theoretical frameworks include sustainability, business, entrepreneurship, and the F&B industry. From five young entrepreneurs, as the case study, impressive results are achieved while answering the research questions and using the theoretical framework.
Entrepreneurs’ perception, courage, and action are important elements that bring their
roles in developing F&B business (Hébert and Link, 1989). It was shown when young
entrepreneurs decided to open and develop their business. Like online snack, she does not have any background in F&B industry but bravely opens her business. As for the entrepreneur's role, online snack is suitable as a static entrepreneur because she has just recently opened her business. Meanwhile, the rest of young entrepreneurs are dynamic entrepreneurs who are developing their F&B business. The roles of entrepreneurs depend on how the entrepreneur sees
their business and willingness to develop further. The more progress in the business, the more roles that entrepreneurs take.
When young entrepreneurs develop their business, they need decision making for daily
operations and plans. Read, Sarasvathy, Dew, and Wiltbank (2011) introduced principles of
effectuation in entrepreneurship. However, all young entrepreneurs still run their businesses with their strength and money. Thus, none of them can be an example of the principles of effectuation. Although, all of them have good decision making for their business, like how private dinner decided to open the business in order to keep their regular customers and how cafe decided to register online delivery apps to adapt to customer behavior. Their decision making depends on their goals in F&B business.
Based on the result of interviewing five young entrepreneurs, two outcomes are divided into perspectives on implementing sustainability as a problem and as an opportunity. However, cafe is in a neutral zone because of the government involvement in rules and regulation of F&B industry. His business follows the government’s law, which is an excellent way to reduce plastic waste and raise awareness of sustainability in the business. So, his perspective is influenced by the government laws which are good for the environment. On the other hand, cafe did not pursue more actions towards sustainability.
Coffee shop and online snack bring results of perspectives on implementing sustainability as a problem. Both of them have a lack of knowledge towards sustainability and concern on material success. Meanwhile, health catering and private dinner perceive sustainability as an opportunity. Their excellent knowledge of sustainability encourages them to implement sustainability as their business strategy, which impacts the business positively. All young entrepreneurs’ perspectives towards implementing sustainability in F&B businesses depend on their business goals and personalities. Choosing sustainability can be either worth for the business because of good value or an inconvenience because of higher efforts and higher expense required.
In the theoretical framework of this research, the information of sustainability models implemented in corporate social responsibility is presented in Figure 1 and 2. Hence, this theory of the Five Capitals Model and Sustainable Value Framework are used mostly in big companies.
