Sustainable Business Through Local Strength: A Qualitative Study of Financial, Social, and Cultural Strategies in Bandung’s Culinary Micro-Enterprises

Abstract

This study examines how entrepreneurial finance, entrepreneurial networking, and entrepreneurial culture contribute to sustainable business among culinary micro-enterprises in Bandung City, Indonesia. This study fills a gap in the literature by highlighting that micro-enterprises’ sustainability, from economic, social, and environmental aspects, is not always underpinned by formal institutional support. Using a qualitative approach and semi-structured interviews with 10 culinary micro-enterprise owners whose businesses have been able to survive across generations, this study found that business owners manage their finances adaptively, build trust-based social networks, and apply local cultural values to sustainable business practices. The findings show that trust and flexibility in informal funding play a crucial role in entrepreneurial finance, while challenging the view that access to formal financing is the main prerequisite for sustainability. Entrepreneurial culture proves to be a strategic internal resource in strengthening environmentally friendly practices. The originality of this study offers an alternative perspective that is more contextualized and grounded in understanding the sustainability strategies of micro-enterprises in developing countries.

1. Introduction

Micro to medium enterprises are major multidimensional contributors to economic growth and socio-economic development [1]. This is because entrepreneurship practiced by micro and small enterprises substantially impacts the national economy, primarily through job creation [2]. Even the international community recognizes micro-enterprises as an efficient tool to provide alternative income for the economically vulnerable poor [3]. Micro-enterprise activities are a tool that can overcome the problem of poverty in developing countries, because they can play a role in the economic growth and development of rural communities [1,2,4].

The Central Bureau of Statistics noted that in 2024, more than 98% of businesses in Indonesia were categorized as micro-businesses, thus playing an essential role in the national economy and having a significant contribution to employment and local economic development [5]. Still, based on the same source, out of 38 provinces in Indonesia, West Java has the third highest number of micro-enterprises after Central Java and East Java. However, based on the inputs and outputs produced by micro-enterprises, West Java occupies the first position throughout Indonesia, with an acquisition value of IDR 48,292,803,000,000 and IDR 85,293,391,000,000, respectively.

Based on data from the Bandung City Micro, Small, and Medium Enterprises Cooperative Office in 2024, the total number of MSMEs in Bandung, the capital of West Java Province, was 10,181. The number consisted of culinary (40.9 percent), services (10.1 percent), handicrafts (6.7 percent), fashion (16 percent), and others (26.2 percent). MSMEs in Bandung in that year could also absorb 26,226 workers, with a turnover of around IDR 1.3 trillion. Micro-enterprises are different from small and medium-sized enterprises. According to Government Regulation Number 7 of 2021 concerning micro, small, and medium Enterprises, in Indonesia, micro-enterprises are defined as business entities that have annual sales of a maximum of IDR 2,000,000,000.00 (two billion rupiah) and capital of a maximum of IDR 1,000,000,000.00 (one billion rupiah), excluding the value of the land and buildings where the business is located; while small enterprises have annual sales of more than IDR 2,000,000,000.00 (two billion rupiah) up to IDR 5,000,000,000 (five billion rupiah) and business capital above IDR 1,000,000,000.00 (one billion rupiah) up to a maximum of IDR 5,000,000,000 (five billion rupiah) excluding the value of the land and buildings where the business is located.

Bandung is known as a culinary tourism city due to its rich blend of cultural heritage, creative innovation, and community-based entrepreneurship. Micro culinary businesses in Bandung operate in an environment rich in Sundanese traditions, informal community ties, and a fluctuating consumer demand shaped by tourism cycles. Traditional culinary management practices, such as firewood, banana leaves, and traditional dishes, are in high demand among consumers. The culinary sector exhibits high levels of creativity and innovation, with many business owners leveraging local wisdom and cultural identity to differentiate themselves in a competitive market [6], providing a unique context for exploring the sustainability of micro businesses, particularly in the culinary sector. These micro food businesses rely on family-based labor, local ingredients, and flexible informal financial practices. Understanding this local context is crucial, shaping how business owners develop and implement financial, social, and cultural strategies. Additionally, this environment provides a rich empirical foundation for interpreting sustainability beyond standardized institutional frameworks.

Although the contributions of MSMEs have been recognized globally, sustainability challenges at the local level are still complex, especially regarding financial stability, social impact, and environmental responsibility [7]. In addition, many micro-enterprises struggle to achieve long-term sustainability due to limited resources, lack of access to technology, and inadequate managerial skills [8,9]. Businesses across sectors face unprecedented challenges, such as fluctuating consumer demand, supply chain disruptions, and intense market competition [10]. Micro-enterprises, in particular, often operate with limited resources and face fierce competition and significant barriers to growth. In such a context, culinary micro-enterprises must shift their focus from pursuing a competitive advantage to ensuring survival [5]. This challenges micro-enterprises to achieve sustainability [11]. This challenge is compounded by a lack of access to formal financial services, limited networking opportunities, and the absence of a strategic approach to integrating cultural elements into the business model.

Micro-enterprises’ sustainability has become a crucial issue in the post-pandemic era. Many modern MSMEs active in various industries have become increasingly interested in implementing sustainability principles in their business models in recent years, and there are good reasons for that [12]. Most existing research focuses only on larger companies or specific aspects of sustainability, such as environmental practices or financial performance [13,14]. Creative solutions are needed in all entrepreneurial endeavors for micro-enterprises, especially as the COVID-19 pandemic continues [15]. In this situation, adapting through innovative financial strategies, strengthening business networks, and applying cultural values in business practices are key to maintaining business continuity in micro-enterprises. Today, sustainable entrepreneurship is paramount, as it provides greater benefits to the firm, society, and the environment [16,17], especially for developing countries that have a large number of micro-enterprises [18].

Research has shown that entrepreneurial networking (EN) can significantly improve micro-enterprises’ performance and resilience, especially in dynamic and uncertain environments [19]. On the other hand, entrepreneurial finance (EF), which includes access to finance and the implementation of innovative financial strategies, such as fundraising and micro-enterprise financing, has been shown to play an essential role in enhancing business sustainability (SB) [20]. Even in the context of micro culinary enterprises, entrepreneurial culture (EC) can serve as a powerful tool to build brand identity, foster customer loyalty, and increase competitiveness [21,22,23]. Despite the growing recognition of the importance of EN, EF, and EC, research exploring how these factors interact to drive sustainability in micro-enterprises, particularly in developing countries such as Indonesia, is still minimal. However, entrepreneurial competencies significantly impact micro-enterprises’ sustainability [2]. Previous studies on SB tend to be fragmented: EF is analyzed separately from EC [14], while EN is rarely studied in the context of micro-enterprises [2]. However, these three factors are culturally and structurally intertwined.

This study aims to fill this gap by investigating the synergy of EN, EF, and EC in achieving SB in culinary micro-enterprises, using a participatory qualitative approach that has not been widely practiced. SB in this study was analyzed from three main aspects: economic, social, and environmental. The monetary element focuses on financial management and investment strategies that can increase businesses’ profitability and stability. The social element looks at the role of business networks in strengthening collaboration and improving access to broader markets. Meanwhile, the environmental aspect is explored by implementing local culture-based environmentally friendly strategies, such as using local raw materials, waste management, and adopting sustainable business practices. Based on the problems that have been identified, this research asks several central questions: (1) What is the impact of EN in realizing SB in culinary micro-enterprises? (2) What is also the role of EF in the business of culinary micro-enterprises in achieving SB? (3) How does EC affect SB in culinary micro-enterprises? (4) What strategies are used by culinary micro-enterprises in integrating EN, EF, and EC to achieve SB?

Specifically, in response to the Sustainable Development Goals (SDGs), this article seeks to investigate how culinary micro-enterprises can be empowered by leveraging “clean and green” practices through the innovative use of local resources, while protecting the environment at the same time. This study also develops a “more down-to-earth sustainable business practice strategy” to guide culinary micro-enterprises to survive across generations. Through this approach, the findings of this study are expected to make theoretical and practical contributions in strengthening the sustainability of culinary micro-enterprises, as well as to provide input for policymakers and business owners in developing adaptive and sustainable business models, especially for micro-enterprises in developing countries. The remainder of this article is structured as follows: Section 2 presents the literature review and conceptual discussion of the four key variables: EF, EN, EC, and SB. Section 3 outlines the research methodology, including participant selection and data collection procedures. Section 4 presents the research findings, while Section 5 provides an in-depth discussion. Section 6 presents the conclusions, followed by the theoretical and policy implications, as well as the limitations and suggestions for future research.

2. Literature Review

This section synthesizes findings from qualitative studies examining how micro-enterprises achieve sustainability through adaptive strategies. Unlike quantitative approaches that test theoretical models, we highlight empirical patterns from field research in developing economies, particularly culinary sectors. This review synthesizes three key themes: (1) informal financial practices, (2) trust-based networks, and (3) cultural adaptation. Unlike theoretical frameworks for large firms, these findings emerge from field observations and participant narratives.

2.1. EF as Micro-Enterprises’ Finance Strategy

Many MSMEs in Asia and Africa are hampered in business growth due to difficulties accessing external funds [24,25]. The availability of financial resources plays a crucial role in an enterprise, as it influences better business processes and innovation opportunities [26,27]. Conversely, poor financial systems can lead to the stagnation of innovation, which results in many MSMEs being unable to compete [28]. A sound monetary system will increase the probability of successful innovation in small businesses, which in turn can accelerate economic growth. Conversely, a poor financial system leads to a stagnation of innovation that results in many MSMEs being unable to compete [29]. MSME financing sources are dominated by self-financing, which tends to be insufficient for all business needs, making it difficult for MSMEs to develop optimally, and ultimately, their business scale will not grow significantly [26]. Ref. [30] states that the leading cause of micro and small enterprise failure is the unavailability of external financing for MSMEs.

EF is the academic discipline examining how financial resources are mobilized, allocated, and optimized within entrepreneurial ventures [31]. It encompasses moderating financial risk, structuring financial agreements effectively, and transforming created value into measurable financial returns. Ref. [32] states that firms with strong EF practices can better survive and even thrive during times of crisis. Sound financial management helps micro-enterprises overcome external disruptions and sustain their operations. Thriving entrepreneurship depends on carefully administering and supervising financial resources [31]. EF can encourage firms to seek innovative and creative funding sources, such as crowdfunding, strategic partnerships, and government assistance programs. Financial support through microfinance institutions is one of the factors that can increase entrepreneurial resilience at the organizational or individual level [33]. In line with the research in [34], one of the macro factors affecting business resilience relates to general support from the business environment, in this case, financing and mentoring, business culture in an area, and attitudes towards failure.

The ability of SMEs to access finance is essential for resilience [20]; even [35] notes the tendency for larger-sized SMEs and those with good access to finance to be the most resilient in the face of economic downturns. Of course, business resilience is closely related to the sustainability of the business itself. An efficient use of capital enables firms to maintain viability and adapt their strategies in the face of unforeseen challenges [36]. Ref. [32] empirically found that SMEs can increase their business resilience by adjusting their strategic assets and capabilities, especially by focusing on access to finance, material assets, networks, and strategic and operational flexibility. When micro- and small entrepreneurs possess coping skills, they can develop the necessary strategies, encompassing contingency plans for managing common risks or economic downturns, dealing with resource limitations, and expanding their business network [37]. The EF indicators in this study were adopted from the research in [31] and include six indicators: mobilizing financial resources, allocating resources, managing risks, optimizing financial contracts, and creating and increasing value in micro-enterprises’ entrepreneurship.

2.2. EN’s Role in Driving SB

EN is understood as the actual process of forming and maintaining relationships, and it underlines the dynamic side of their formation as carried out by focal actors [38]. In the entrepreneurial context, focal actors are business owners/entrepreneurs or entrepreneurs who build relationships for their business needs. Ref. [39] describes EN as a process in which entrepreneurs interact formally and informally to help each other in their business ventures. EN is the ability of an entrepreneur to mobilize available resources within the business network structure [40]. Therefore, networking pays close attention to an individual’s behavior and ability to establish relationships. Some network strategies in developing countries included in the GEM, such as Brazil, China, Chile, Colombia, India, Mexico, the Philippines, and Turkey, can be successful, depending on the individuals involved or determined by mutual interest and respect [41].

EN generally looks at what entrepreneurs do, create, and form network relationships for and, therefore, may include the formation of behaviors and the maintenance of relationships, a set of behaviors such as unique networking styles, strategies, or processes [42], including attention to customers, understanding of the business, market orientation, and improvements in quality. Networking, or the tendency of organizations to tap into a network and continuously create new relationships, has gained increasing attention in the marketing literature [43]. Through EN, micro- and small enterprises establish formal and informal ties with customers, suppliers, financial institutions, and other actors to gain the necessary support for business performance [44]. EN helps acquire and transform external knowledge into internal capabilities, essential for developing new products and services [39,45].

Businesses’ competitiveness and sustainability require trust-based relationships among small and medium-enterprise entrepreneurs, which are executed through networking [46]. A firm must enter into transactions with other firms operating in its environment to acquire the resources needed to differentiate itself from its competitors [39]. The strength of ties between MSME owners increases their ability to capitalize on various opportunities, including financing [26]. In fact, the better the entrepreneurs practice networking behaviors, the greater their influence on the success of their startups, especially in creating a competitive advantage [47]. Of course, micro-enterprises that have a competitive advantage will be able to survive in the market. Small businesses that utilize valuable network resources to drive internal innovation will experience sustainable growth. In contrast, small businesses that do not utilize the power of entrepreneurial networks will miss the opportunity to access resources critical for innovation and sustainable business growth [48]. Therefore, it is imperative to pay attention to networks that enable micro-enterprises to access different external resources, including financial and non-financial ones, to enhance their viability.

Research proves that EN helps companies’ sustainability by providing a rescue in times of crisis and providing the resources they need for growth and meeting market opportunities [40]. Many entrepreneurs today focus only on internal resources and rely more on resource acquisition than on building EN. Entrepreneurs in developing countries often face barriers to entry into vital markets [49]. In this situation, the function and role of EN is to develop new profitable businesses and bridge gaps in organizations and for the fulfillment of resources [50], even helping them reduce entry barriers [39]. Entrepreneurs need to be aware of networking with other entrepreneurs to provide insights into future and current business prospects and industry trends, which can improve the quality of information that entrepreneurs can access when they want to take advantage of new opportunities [51].

2.3. EC Practices in Micro-Enterprises

The importance of culture to entrepreneurship has been studied by many researchers, beginning with Weber’s (1930) work on culture in the Protestant work ethic. The authors of [52] define culture as “a set of enduring values of a country, region, or organization” and entrepreneurship as “the actions and processes by which a society, region, organization, or individual identifies and pursues opportunities to create wealth”. This combined definition recognizes the role of cultural values in supporting business activities [23]. While there is no consensus on defining EC, most focus on how individuals, organizations, and businesses launch ventures that focus on local culture-based creative activities.

When considering EC in an organization, innovation is one of the most important elements for its growth and success, so research on innovation and creativity is particularly needed in the context of EC [53]. The picture of innovative EC comprises three components: openness, business owner self-efficacy, and creativity [54]. Self-efficacy is an individual’s belief in their ability to succeed and accomplish tasks under specific circumstances. Openness to change is described as an overall change in an organization with two aspects: first, employees and managers are ready to support the change, and second, they have a positive attitude toward the results. Meanwhile, creativity is defined as a person’s ability to generate new and applicable ideas in any context [53]. Several other studies reveal that a strong EC must be owned by all levels of business, from small to large scale; this is a challenge in itself, especially for small-scale businesses [55], including culinary businesses.

The rapid growth of the culinary industry in recent years has contributed to environmental degradation. Many researchers have developed theoretical frameworks and models to understand and measure the relationship between culinary business development and environmental damage. However, the emphasis on the importance of EC in developing corporate environmental performance is still lacking. Previous research on the contribution of EC to environmental performance is minimal. The current literature on EC and environmental sustainability is still primarily based on case studies rather than empirical data. The most prominent research from [56] suggests that in SMEs in Pakistan, the culture of adaptability, mission, and consistency positively affects environmental performance. Other studies emphasize increasing market share, improving corporate reputation, increasing production costs, and competitive pressure as variables to consider in developing environmental strategies [16,57,58]. Such studies are also primarily based on institutional and internationalization theories to explain the factors that urge firms to improve their environmental performance.

Therefore, our research tries to measure EC through an innovative culture without ignoring localization, which we think will contribute positively to environmental performance, especially in culinary businesses. We follow the resource-based view (RBV), and EC will strategically provide the right sources of competitive advantage that will play a role in environmental performance. In this context, RBV helps to explain how internal cultural resources—such as self-efficacy, trust, and local environmental practices—function as intangible strategic assets. These internal resources are embedded in the business routines and practices inherited by micro-enterprises, enabling them to generate sustainable value creation. Thus, EC operates not only as an expression of culture but also as a resource that supports environmental and competitive advantages within the RBV framework. EC plays a fundamental role in the shift toward sustainability and environmental practices. Implementing sustainable practices, particularly environmental performance, will require the appropriate cultivation of an EC.

2.4. SB in Micro-Enterprises in Economic, Social, and Environmental Dimensions

In business or entrepreneurship studies, SB is translated as a business activity that aims “to meet the needs of stakeholders without compromising its ability to meet the needs of the next generation” [59]. In the global context, SB is also defined as achieving sustainable development by discovering, evaluating, and utilizing opportunities and creating value that results in economic prosperity, social cohesion, and environmental protection [11]. A company that can create profits for owners, while protecting the environment and providing social benefits [60].

In assessing SB, Elkington’s Triple Bottom Line concept, which focuses on economic, social, and environmental performance, is widely used by researchers. The Triple Bottom Line reveals that the key measurement of the economic dimension is the focus on corporate welfare [61]. The social dimension focuses on the impact of a company on stakeholders, such as employees, communities, and customers. In contrast, the environmental dimension emphasizes the safe use of resources and waste management [62].

Applying the SB concept to micro-enterprises is not as easy as for medium or large enterprises. Interestingly, some research is now providing new findings that sustainability practices are found in small businesses. Research in New Zealand compared sustainability practices between small, medium, and large enterprises and found that even small businesses have relatively good social care, especially towards employees and the community [11]. Research in [63] in Indonesia found that small businesses’ social performance practices are based on the normative and religious attitudes of business owners.

Some entrepreneurship experts suggest that there is no standardized measurement tool to measure businesses’ sustainability, especially for micro or small businesses. The Global Reporting Initiative (GRI) sustainability measurement indicators widely used today to measure economic, social, and environmental performance are more appropriate for large industries [64]. The measurement of sustainability for micro-enterprises is very subjective; therefore, many micro-enterprise sustainability measurement tools have been designed by researchers by considering the conditions of the companies under study but still focusing on their economic, social, and environmental performance [9,65,66]. Currently, the three-generation boundary is used as one of the indicators of sustainable entrepreneurship [67], because it can survive across generations.

From the above discussion, we argue that studying businesses’ sustainability in micro-scale culinary businesses is very important. We propose that sustainability in micro-enterprises can be realized by integrating several important components, namely EN, EF, and the strength of EC, which influence micro-enterprises’ business activities. To expand the limited literature on micro-enterprises’ behavior, we believe explorative studies are needed and will be more effective in understanding micro-enterprises’ behavior so that they can survive and be sustainable. Of course, other external factors such as market, trends, competition, and policies should be considered.

3. Research Methodology

3.1. Study Design

This study employs an exploratory qualitative design, utilizing semi-structured interviews to capture the nuanced interactions between EF, EN, and EC among existing culinary micro-enterprise business owners in Bandung City, West Java, Indonesia. This approach aligns with previous qualitative investigations into SMEs’ sustainability in developing countries [9,33,68], which explored the dynamics of micro-entrepreneurship through in-depth interviews and contextual immersion. Unlike quantitative methods focusing on hypothesis testing, our design facilitates an in-depth exploration of contextual practices, following [69]’s framework for theory-building case studies. To ensure accuracy, we applied data triangulation [70] and thematic analysis through NVivo 12 [71], reducing researcher bias and enhancing interpretive validity. The overall stages of this qualitative research are illustrated in Figure 1.

3.2. Participants and Setting

We used purposive sampling, which is recommended in qualitative research to select participants who are familiar and knowledgeable in the topic area [72]. The participants in this study were micro-business owners in the culinary sector in Bandung City with the following inclusion criteria: (1) The company is a micro-enterprise engaged in traditional culinary arts and is registered with the Bandung City Micro, Small, and Medium Enterprises Cooperative Office. (2) As a representation of a sustainable business, the company has been run by at least 3 (three) generations. (3) The business must still be active and operating during the study period. Business owners who could not be interviewed or were unwilling to participate were excluded. Initially, 12 participants were selected, all of whom owned culinary micro-enterprises that three generations had run, but two participants withdrew from the study, bringing the final sample to 10 participants. This number was considered sufficient for exploratory investigation, in line with best practices prioritizing depth over breadth [72]. Participants’ demographic information included years of experience (ranging from 21 to >27 years), educational background, type of culinary business, and number of employees.

3.3. Data Collection

The author used semi-structured, in-depth interviews to explore the business owners’ current experiences in maintaining their businesses’ sustainability. The interview guide was developed based on a literature review and verified by three experts in the field of entrepreneurship. The interview sessions began immediately after obtaining consent and permission to record the participants’ voices. Each interview lasted approximately 45–60 min and was conducted in person. This study used various tools, including audio recorders, semi-structured interview guides, and field notes, while the researcher played a crucial role in data collection. The interviews began with efforts to build trust and good relationships between the interviewer and participants.

In addition to in-depth interviews, informal observations were conducted during field visits to each micro-enterprise (Appendix A). These observations provided contextual clues about the layout of the enterprise, cultural elements, environmental practices, and interactions with customers. In addition, traditional menus, packaging, and financial records were documented to support the triangulation of findings. This combination of data sources enhanced the credibility and depth of the qualitative insights.

3.4. Data Analysis

This study used NVIVO 12 software (QSR International) to systematically classify and organize data obtained from quotations and participant observation [71]. The stages of analysis carried out were as follows:

• We listened to the recorded interviews, then transcribed them to understand the data as a whole;
• We included non-verbal notes from research respondents to gain a comprehensive understanding;
• We read the transcripts repeatedly and reflected on the content of the transcripts to ensure that the content of the transcripts matched the recordings;
• We identify the content of the acquired data;
• We categorized the data based on the number of informants and explained the statements that emerged from the transcripts;
• We wrote down the themes that emerged from the entire transcript and illustrated them according to the respondents’ statements;
• We validated the data obtained by clarifying it with the informants;
• We synthesized the statements, so they did not contradict the rest of the transcript.

3.5. Triangulation and Trustworthiness

The author conducted validation tests on the participants’ interview responses to ensure the accuracy of the data. Data collection was stopped after saturation, indicating no new insights emerged. The study utilized triangulation across sources, techniques, and research duration [70]. Peer review, involvement of the dissertation advisor as a reviewer, and adherence to research documentation, including research reports and manuscripts, further strengthened the study’s logical coherence and credibility [73].

4. Result

4.1. Respondent Characteristics

The characteristics of the respondents, including gender, age of the entrepreneur, educational background, type of business, number of employees, length of business, and majority of funding sources, are presented in

Table 1. Profile of Respondents.

Characteristics		Frequency	%	Characteristics		Frequency	%
Gender				Type of Business
1.	Male	6	60	1.	Restaurant	0	0
2.	Female	4	40	2.	Food stalls	2	20
Age				3.	Culinary carts	6	60
1.	<25 years old	0	0	4.	Various cakes and snacks	2	20
2.	26–35 years old	0	0	5.	Beverage/coffee shop	0	0
3.	36–45 years old	4	40	Number of Workers
4.	46–55 years old	5	50	1.	1–3 people	2	20
5.	>55 years old	1	10	2.	4–6 people	6	60
Education background				3.	7–9 people	2	20
1.	Elementary school	0	0	4.	>9 people	0	0
2.	Junior high school	0	0	Length of Business
3.	Senior high school	8	80	1.	6 years	0	0
4.	Diploma	1	10	2.	7–13 years	0	0
5.	Bachelor	1	10	3.	14–20 years	0	0
6.	Master	0	0	4.	21–27 years	3	30
7.	Doctor	0	0	5.	>27 years old	7	70
Turnover/month					Funding Source Majority
1.	<IDR 10,000,000	0	0	1.	Owner equity	5	50
2.	IDR 10,000,000-IDR 30,000,000	0	0	2.	Family/relatives	3	30
3.	IDR 30,000,000-IDR 40,000,000	2	20	3.	Non-banking institutions	0	0
4.	>IDR 40,000,000	8	80	4.	Banks	2	20

.

The majority of respondents in this study are men, with a percentage of 60% and an average age of 46–55 years. Research in [5] states that men show resilience, perseverance, and patience in managing and maintaining businesses, especially in micro-enterprises. Most of the respondents are senior high school graduates (80%), and only a few are diploma and bachelor graduates. Meanwhile, most of the business owners (70%) run a business established over 27 years, starting from their grandfather’s parents. Finally, they are continuing it with an average number of employees reaching 4–6 people. While almost all respondents (80%) have a monthly turnover of more than IDR 40,000,000, 50% of respondents use their capital in business activities. Only a small proportion (20%) had the largest composition of funding sources from banks.

4.2. EF Strategy: Sustainable Economic Foundations in Micro-Enterprises

Finance is the primary foundation in maintaining the sustainability of culinary micro-enterprises, especially from an economic perspective. However, limited resources often challenge business owners to run and grow their businesses. In this context, an effective financial strategy of asset optimization, risk control, and value creation is key to maintaining operations while driving business growth. Business owners demonstrate financial adaptability through various means, from maximizing internal resources and maintaining a cash flow balance to choosing selective and wise financing strategies. These findings confirm that EF is not just a matter of capital sustainability but also a long-term strategy that contributes to the economic sustainability of micro-enterprises.

4.2.1. Resource Maximization: Efficiency and Innovation Strategies in Limited Asset Management

Optimal resource management is a key strategy culinary micro-business owners in Bandung City apply to maintain business sustainability (SB), especially economically. The interview results show that business owners have a high financial awareness of the importance of the efficient use of resources, especially in the early stages of business development, such as utilizing their homes as business locations to avoid rental costs, prioritizing self-funding through savings, and minimizing the risk of debt by being selective in applying for loans. This pattern demonstrates the principle of financial prudence and an awareness of maintaining a cash flow balance, where expenses are controlled so as not to exceed income. In addition, internal labor (family and relatives) before recruiting outside workers reflects efforts to maximize the available human resources without burdensome operational costs. These practices confirm that resource optimization in micro-enterprises is about short-term efficiency and building a stable economic foundation for sustainable growth.

Administrative discipline and the planning of gradual expansion through separating business and personal bookkeeping and the orderly recording of debts and credits are critical steps in improving financial transparency and accountability. This also allows business owners to identify points for improvement and make data-driven decisions, such as securing external capital from family investments, relatives, or low-interest bank loans (KUR) when business results have proven consistent. This approach reduces the risk of over-leverage and strengthens the business’s reputation as a credible entity. Thus, resource optimization supports the financial resilience of micro-enterprises and contributes to building a sustainable business ecosystem through circular economy practices and responsive risk management. The following is a detailed explanation of resource optimization:

A-3-“We continue to manage our resources as well as possible to not burden our finances even more. For example, we try to do our business at home first, so we do not have to rent or buy. When we see results, we will expand.”

A-5-“Regarding the fulfillment of working capital, we are very selective and try to measure according to our abilities, not forcing ourselves to apply for loans beyond our ability to pay the installments. As much as possible, we use our savings, but if it is not sufficient, we will borrow from relatives or friends who want to invest.”

A-7-”Do not let expenses outweigh income. Although the profits are not large, we do not let the business continue to lose money. Before hiring outside workers, we maximize the use of our spouses, children, and relatives. If the results look good, then we hire outside workers.”

A-1-”We try to record in an orderly manner every expenditure and income, including debts and receivables so that the administration is orderly and we can see which ones need to be improved for the following month.”

A-10-”If the business continues to grow well, then we will increase our capital by offering investments to relatives or friends. However, if this is not possible, we apply for a working capital loan from a bank specializing in KUR, hoping the interest is not too high so we can pay on time. We need to maintain the good name of our business and not get into debt or bad credit.”

A-4-”We started our business with whatever capital we had, and when that was not enough, we borrowed from relatives. Business owners need to realize that banks will only give loans if the business has good prospects, and even then, the requirements are pretty strict.”

A-9-”There was a time when bookkeeping was mixed up with personal expenses, so the results were chaotic; we did not know how much net income was obtained. Therefore, we try not to mix personal expenses with business expenses.”

4.2.2. Proactive Risk Management: Building Resilience Through Threat Identification and Mitigation

One of the strategies entrepreneurs employ in dealing with market dynamics and other external challenges is to have risk management skills by being cautious and measured in every decision. Interview results show that they have learned from bitter experiences in the past, especially related to losses due to hasty business decisions, uncontrolled receivable practices, and non-transparent partnerships. In order to reduce risks, they now implement various anticipatory measures such as the imposition of down payments and sanctions for canceling orders, limiting access to receivables, and being careful in choosing external sources of financing, especially credit from financial institutions that require a high commitment. In addition, some business owners also stated that they only accept investments from individuals with a personal relationship or strong trust to maintain communication and stability in capital management.

Aside from financial risks, culinary micro-enterprise entrepreneurs also demonstrate planning skills in dealing with demand spikes, such as during Ramadan, long holidays, and year-end celebrations. They strategically adjust the volume of raw material purchases, prepare storage logistics, and recruit part-time workers to maintain smooth operations. These practices show that business owners manage risks to survive and maintain their business continuity and reputation in the long run. Adaptability, long-term considerations, and an orientation toward business stability are the main strengths that allow businesses to continue to exist amidst economic uncertainty and limited resources. For more details, see the data description below:

A-1-”It is important to consider the risks before making decisions, especially regarding business continuity. We should not be rash and hasty. Several times, we have suffered losses because we rushed to make decisions, thinking that we would make a profit, but instead, we lost.”

A-7-”Whenever a large order comes in, we now impose a down payment of at least 25% of the total price. In addition, if it is canceled, a 10% fine will be imposed. This is done to prevent fictitious orders.”

A-9-”Any agreement related to debt and credit must be strictly observed. We no longer provide receivables, because we have learned from previous experiences that we always fail to pay. We had difficulty collecting money, which eventually caused us to lose money. Therefore, the safety of our business is a priority.”

A-8-”For the sustainability of this business, we are very selective in choosing external sources of financing, such as credit provided by banks. We must be fully committed to all the obligations we have to fulfill, be it the payment of principal installments or interest. Moreover, there is collateral that must be pledged so that if payments default, Bank Indonesia will blacklist our names, and our collateral must also be auctioned.”

A-6-”We only accept investors we know personally, not outsiders, so it is easy to communicate if things go wrong. However, outside funding is only a small proportion of the total capital.”

A-2-”We hope that the government will provide a business capital financing policy that is not burdensome for us micro business owners. Many of the People’s Business Credit requirements are still too heavy for us, such as collateral eligibility, high interest rates, and other requirements imposed by banks.”

A-5-”Usually, our culinary business experiences a considerable increase in demand from consumers during certain seasons such as Ramadan, Eid Day, long holidays, and year-end holidays. Therefore, we must work around this by buying more raw material supplies, preparing adequate storage space, and adding part-time workers. Of course, this requires even greater additional capital. We have to calculate this carefully.”

4.2.3. Sustainable Value Creation Through Product Innovation, Customer Satisfaction, and Market Differentiation

Value creation is a critical foundation in strengthening the resilience and economic growth of micro-enterprises, reflected through innovative strategies and responsiveness to market dynamics. Business owners systematically integrate customer feedback into product development, service quality improvements, and brand innovation to differentiate themselves from the competition. Practices such as updating menus based on consumer preferences, adopting technology for operational efficiency, and designing loyalty programs through strategic discounts demonstrate a commitment to meeting market expectations and building sustainable emotional relationships. This approach drives increased sales and reinforces the business’s reputation as an adaptive and customer satisfaction-oriented entity. Furthermore, investments in productive assets, such as branch expansion or strengthening technological infrastructure, reflect a long-term vision to create stable economies of scale, despite this requiring a significant initial capital allocation.

Business owners also proactively manage consumer criticism as evaluation material for continuous improvement. On the other hand, operational innovations—such as technology-based process updates—reduce reliance on conventional, high-risk methods and open up opportunities for cost efficiency and market expansion. The following is a detailed description of the efforts of culinary micro-enterprises in creating value:

A-10-”We strive to create value through innovation in new product development, improving product quality, and maintaining our brand image. Customer feedback and satisfaction are always our priorities for the continuity of our business.”

A-2-”We always re-evaluate every feedback either directly or through consumer reviews so as not to disappoint our consumers in the future.”

A-3-”Discounts on specific dates, such as twin dates (8.8, 9.9, 10.10, and so on), are also made to create closeness with our loyal customers.”

A-6-”One of the ways we increase value is by updating our menu based on customer feedback. For us, customer satisfaction is one factor that determines the business’s success.”

A-9-”Improving our operational processes for the better by adopting adequate technology is what we do to keep the business running. Although it will certainly cost a lot initially, we see it as a valuable asset investment for the continuity of our business.”

A-8-”We constantly strive to develop more effective and adaptive financial strategies to exploit opportunities such as opening new outlets. Of course, the wider our market share, the more sustainable our business will be.”

A-4-”Many entrepreneurs do not like being criticized by their customers, but for us, providing the best service is one of the keys to our success. We continue to innovate even though it may seem trivial, such as providing a thank you card for every product we sell.”

4.3. EN as Strategic Social Capital for Culinary Micro-Enterprise Sustainability

EN serves as a bridge that connects micro-enterprises with the broader business ecosystem, from local suppliers to loyal customers. Through strategic collaboration and strengthening trust-based relationships, EN expands market access and creates sustainable social impacts by empowering local labor and an equitable distribution of economic benefits. In the context of cross-generational family businesses, this network becomes a means of knowledge regeneration and social legitimacy.

4.3.1. Strategic Network Expansion: Expanding Market Access and Collaboration for Inclusive Growth

Culinary micro-enterprise owners actively expand their business networks by participating in external activities such as training, workshops, and exhibitions facilitated by the local government and the private sector. These activities provide access to new knowledge and strengthen connections between business owners. In sustainability, social relations have become important in maintaining the business’s existence. Not only that, the charitable activities carried out are also a form of social awareness that is part of their business activities and helps shape a positive image of their brand in the eyes of consumers.

In addition to formal activities, informal networks such as WhatsApp business community groups play an important role. Business owners obtain information on suppliers, cooperation opportunities, and even institutional customers from these networks. An extensive network strengthens the social position of micro-enterprises and creates a collaborative ecosystem that supports business sustainability in terms of relationships between business owners. The following is a detailed explanation of the network expansion efforts undertaken by culinary micro-business entrepreneurs:

A-3-”We are happy when we can attend events organized by the Cooperative and MSME Office, such as workshops, exhibitions, and training. Apart from gaining new knowledge, we can also get to know other micro business owners so that we can exchange experiences that will certainly be useful. However, it is unfortunate that these activities are still rarely held. In a year, we can count the number of times.”

A-9-”Our business network is essential for the sustainability of our business. Not a little information related to suppliers that we get is given by our relations. We compete healthily because we believe that sustenance has been arranged.”

A-5-”To facilitate communication and exchange of information, we are connected to several WhatsApp groups, such as the Sundanese business community. We find this very useful.”

A-7-”We hope that the Government consistently organizes events related to culinary micro-enterprise products because this is a place for us to add contacts.”

A-1-”Many of our customers come from participating in events such as exhibitions. Many of our regular customers are institutions, so our products are often selected for consumption at office events.”

A-2-”Every Friday, we hold a blessing Friday activity by giving online drivers 20 rice packages. Then, every year, we routinely hold charity sharing activities with orphans, usually held during the holy month of Ramadan. This is our commitment to share with others.”

4.3.2. Strengthening Long-Term Relationships: Building Trust and Synergy Through Quality Partnerships

The business owners’ social strategy to maintain their businesses’ sustainability is deepening existing relationships. Good relationships with customers, business partners, and local communities create a climate of trust and open communication. This includes employees. They recognize that strong relationships help them resolve operational issues and maintain customer loyalty.

Utilizing communication technology, such as social media, is also part of the strategy to strengthen the network of relationships. Instagram, Facebook, and WhatsApp are not only used as channels for exchanging information and knowledge but also for promotion, to strengthen personal communication with consumers. This practice builds a social closeness that positively impacts business continuity, especially during dynamic market competition. For more details, see the data description below:

A-6-”Most of our employees also come from the neighborhood. We want to empower the local people here to have jobs and income.”

A-8-”We establish good relationships with all relations, be it customers, suppliers, or fellow culinary micro-entrepreneurs. We maintain this as an effort to keep our business running smoothly. Not only that, but we also maintain good relationships with our employees. Moreover, the majority of our workers come from the neighborhood.”

A-9-”Without a good relationship with our customers, raw material suppliers, and even the courier, our business would not have lasted this long for three generations.”

A-2-”Social media such as IG, Facebook, and WA, aside from being a medium for product promotion, we utilize it as a medium for good relations, especially with customers, where they can ask anything related to our products.”

A-5-”If we have established a close relationship with our relations, it will be easier to communicate if there are urgent matters such as stock availability, product delivery delays, etc. It has all been beneficial in achieving our business so far. Competition in the business world is normal but done healthily.”

4.4. EC: Integration of Local Wisdom and Green Innovation for Sustainable Environment

The EC, which is rooted in local wisdom values, is a unique strength that drives environmentally friendly business practices. The EC variable confirms that self-efficacy, openness to change, and creativity based on family heritage can transform limitations into ecological solutions using natural packaging to recycle organic waste. This culture not only maintains harmony with nature but also strengthens the business’s identity as an entity responsible for the environment’s future.

4.4.1. Self-Efficacy: Self-Confidence as a Foundation for Resilience and Environmental Care

The value of self-efficacy is strongly reflected in the narratives of culinary micro-business owners, who believe that perseverance and confidence in their abilities are the main foundations in maintaining business continuity, including preserving the environment. This belief is passed down from generation to generation, becoming an internal force that encourages them to run a business not only for profit but also to be in line with ethical values such as not damaging the environment and remaining grounded in local wisdom.

Some business owners use local and natural raw materials to show a tangible form of this self-efficacy. Using traditional ingredients such as rhizomes (turmeric, kencur, ginger, black pepper) obtained from their surroundings is key in creating the “typical” taste of Sundanese ethnic cuisine. Some sweets still use palm sugar and coconut sugar as natural sweet flavors without artificial sweet flavors. Other environmentally friendly practices can be seen in the use of natural-based packaging, such as corn leaves to wrap sticky rice dodol, banana leaves to wrap talam cakes, and recycled paper for chip packaging. This is certainly considered safer for consumers and friendly to the environment.

The belief to survive and thrive also triggers awareness to keep the production process clean and high-quality. They also have a role in protecting the environment, for example, by sorting kitchen waste independently and utilizing organic waste as animal feed. This practice is not carried out because of trends but because of the belief that businesses run with good intentions and that do not harm the environment will be more blessed and sustainable. Thus, self-efficacy is not only a psychological boost for business owners but also implemented into concrete actions that strengthen the environmental sustainability of culinary micro-enterprises consistently and in a way that is down to earth. For more details, pay attention to the data description below:

A-1-”I think the key to the success of our business since our grandfather’s generation, until today, is just a strong belief that we can. This belief has allowed us to survive this business for over 40 years. We have held on to several things for generations, including the fact that we are used to using local and natural raw materials, namely white sticky rice for ‘the wajit’ we make. We believe that using local and natural ingredients is safer for consumers. Nowadays, all-natural ingredients are sought after by our consumers.”

A-5-”From the beginning, we believed that if we worked hard, we would survive. Ups and downs in business are normal, but we survive because we strongly desire to maintain our family business and coexist with nature. We believe small businesses like ours can still contribute to the environment, for example, by always keeping the production process clean and sorting organic and inorganic waste in the kitchen. We use the organic waste to feed our chickens and fish.”

A-7-”Never giving up and believing that we can move forward are the forces that drive us to survive. Our strong self-belief is realized in creating quality food products and choosing packaging. Our dodol is wrapped in corn leaves, which helps keep our products and the environment safe.”

A-6-”We have worked hard to build this business from my grandmother’s first generation, my father’s second generation, and me as the third generation. Seeing the success of my grandmother and father made me determined to make our business even more successful. We believe there will be a way where there is a strong will. We believe that if our business is started in the right direction in the sense that it does not harm others and the environment, it will bring blessings and will survive for a long time.”

4.4.2. Openness as a Catalyst for Eco-Innovation

An open attitude to change is an important part of Bandung’s culture of cross-generational culinary micro-enterprises. Although rooted in the traditional values of their parents or grandparents, the next generation has begun to adopt them to a more environmentally friendly approach.

With easy access to technology, communication, and information, business owners are open to positive newness. Although this process is not easy or instant, it strengthens their culture by implementing environmentally friendly practices in selecting raw materials, production processes, and post-production. Some business owners have switched from plastic to environmentally friendly packaging, such as banana leaves, corn leaves, teak leaves, or recycled paper. Some business owners started implementing a pre-order system to avoid leftover food. In the kitchen, sorting and utilizing organic waste for fertilizer or animal feed has also been implemented. For example, the tofu industry, which used to dump tofu waste into the river, has now started to collect tofu production waste and sell it to cattle farmers as feed. Both employees and owners are very open and supportive of change if it is better for their business. For more details, see the data description below:

A-10-”Our business has been running since my grandmother’s time. However, we feel that something needs to be adjusted, especially now that many consumers are more concerned about the environment. We replaced plastic packaging with food paper to be more environmentally friendly.”

A-8-”Although many people recommend using chemical preservatives, we still believe we can survive with natural ingredients. As a result, our products are safe, and our customers trust us.”

A-4-”We used to use Styrofoam, but many customers protested. Now, we replace it with bamboo baskets inherited from our parents. It turned out to be a trademark.”

A-5-”I always ask for reviews from customers about my products. This is very important for us; we can learn from them, and they often give us feedback. We have many loyal customers. Of course, we always accommodate all feedback that positively impacts our business and does not harm others, the environment, or nature.”

A-7-”My parents always told me that every business we run should not harm others and never go against nature. Live side by side with them. Until now, we have always kept that message. We are grateful that our place of business has been safe until now. Floods or landslides have never hit it because we and the community here preserve nature for the good of us all.”

4.4.3. Tradition-Based Creativity: Inclusive Innovation for Business and Environmental Sustainability

Creativity in culinary micro-enterprises grows as a form of adaptation to daily challenges and a manifestation of cultural values passed down between generations. Business owners not only maintain family recipes and production techniques but also incorporate elements of creativity in various aspects, such as utilizing food waste in derivative products, using recycled packaging, and promoting strategies that educate consumers about environmental issues. By combining old values and new, more environmentally conscious approaches, creativity becomes an important tool to ensure the long-term sustainability of the business, economically, socially, and ecologically. For more details, see the data breakdown below:

A-5-”Our chili recipe is inherited from my mother, but I modified it by adding natural ingredients from my yard, such as fresh orange leaves. We also pack it in glass bottles that consumers can reuse to not increase the amount of plastic waste.”

A-9-”Rangginang is made based on a recipe from my grandmother using raw materials from leftover rice. Now, we have developed a new variant with special spices, and we market it as an environmentally friendly product because it is made from leftover ingredients that are not thrown away.

A-2-”We put short messages on the packaging, such as ‘take your trash home’ or ‘reduce plastic.’ This is part of our effort to make shoppers more aware.

A-1-”Alhamdulillah, in the more than 30 years that we have been open for business here, there has never been a flood disaster in this area. This is because we and the residents here care about cleanliness and protecting the environment. Sorting out waste and disposing of it in its place is a habit that we will always teach and preserve to the next generation, including maggot cultivation as part of our creativity, and residents in supporting the efforts of Bandung City to be free from waste.”

Creativity built synergistically by micro-enterprise owners and employees can identify intra-individual elements as the primary key to environmentally based business creativity. People tend to identify more easily with positive and enthusiastic groups that develop fresh and original ideas to improve their business performance. In addition, culinary micro-enterprise owners who are optimistic about practicing environmentally friendly behavior and open to new concepts are important for the company in achieving its environmental protection goals so that their business can continue to survive across generations.

4.5. Conceptual Model of Findings

To visually consolidate the study’s key findings, a conceptual model was developed to depict the thematic relationships between entrepreneurial finance, networks, and culture in supporting sustainable business practices. Each of the three core dimensions is represented by a distinct thematic component that emerged from the in-depth interviews. These themes demonstrate how local strengths are mobilized in diverse yet interrelated ways to build resilience and sustainability among culinary micro-enterprises. The model emphasizes that sustainable businesses are not achieved through a single mechanism but rather through the convergence of financial, social, and cultural strategies embedded in the local context, as seen in Figure 2.

5. Discussion

Culinary micro-enterprises in Bandung often have limited capital, so business owners must be careful when allocating it to raw materials, employee salaries, promotion, or product development. These allocation decisions are important to maintain a healthy cash flow. Opportunities for innovation and better business processes are strongly influenced by the availability of financial resources owned by micro-enterprises. Not only that, but a sound financial system will also increase the chances of successful innovation in micro-enterprises, which in turn can increase productivity growth and lead to the sustainability of the business itself. Even during the COVID-19 pandemic, many of Bandung’s culinary micro-business owners were forced to take business capital from their turnover or income to survive.

However, the issue of funding gaps in the provision of debt and equity as an obstacle to micro- and small business development is not new [74]. Research conducted [75] in Nigeria found that micro-entrepreneurs’ assets positively and significantly influenced formal financing choices but did not significantly influence informal financing choices. However, entrepreneurs generally avoid bank loans due to the burdensome requirements and prefer internal and informal (family/relatives) funding, except when their business enters the expansion phase, when they will need greater financial support than in the introduction or decline phase. Therefore, this study criticizes the common assumption that access to formal capital is the leading solution, whereas, in the context of micro-enterprises, trust and flexibility in informal funding play a greater role. This aligns with the research in [26], which states that EF in micro-enterprises is more adaptive and survival-oriented than oriented towards expansive growth.

The optimization of resources carried out by them not only functions as an efficiency effort but also as a risk management strategy, and it strengthens the financial foundation that supports the resilience of their business to continue to grow healthily and sustainably. This aligns with research in [76], which states that through EFs, entrepreneurs can develop more effective and adaptive financial strategies, enabling them to overcome financing challenges and capitalize on existing growth opportunities. This combination of product development innovation, service transparency, and adaptive financial planning creates a business ecosystem that survives uncertainty and thrives through the strategic utilization of market opportunities. Thus, value creation is a tool for short-term profits and a catalyst for inclusive and sustainable microeconomic development.

Networking with other entrepreneurs can help entrepreneurs learn about current and future business prospects and potential industry trends. Of course, this can improve the quality of the information accessed when companies take advantage of new opportunities. This aligns with research in [40], which states that entrepreneurs with connections in the entrepreneurial community have access to resources, guidance, and problem-solving abilities. Therefore, culinary micro-business entrepreneurs in Bandung try to actively participate in various networks, ranging from business partners to raw material suppliers, distributors, and customers, even though they are informal. In developing countries such as Indonesia, entrepreneurial opportunities are fraught with uncertainty, and formal support institutions are underdeveloped, causing EN to be a strong source of opportunities for entrepreneurship [40]. The authors argue that in such situations, informal network governance mechanisms can help provide structural support to entrepreneurs to counteract inadequate formal institutional support [40,77].

Networking skills significantly predict business success [78]. The business owners are well aware of this, building a diverse network to acquire diverse skills and meet market gaps [40]. The implementation of the EN strategy will optimize the business performance of micro-enterprises. This is because the ability of MSMEs is also closely related to their cooperation strategies with other parties for production cost efficiency [26,79], managing costs [26] through a knowledge of market opportunities, experience sharing, solidarity, and referral trust [26].

Culinary micro-enterprise owners in Bandung realize that their businesses have various limitations, which motivates them to develop business relationships with various parties. Through EN, they can be more proactive in recognizing and exploiting opportunities, leveraging resources, and creating value for all stakeholders. Often, the fulfillment of raw material stock is delayed when there is a shortage for other suppliers, who obtain it based on information provided by fellow entrepreneurs. Likewise, information on organizing exhibitions, workshops, or skills training for entrepreneurs is obtained through WhatsApp business community groups. The charity work they consistently carry out has also been proven to strengthen social ties with the surrounding community and improve their brand image, leading to customer loyalty. This finding is in line with a study by [80], which states that social responsibility activities in small businesses can strengthen consumers’ positive perceptions of brands, especially in the context of the local economy. The high value placed on customer demand as an input to determine how to implement sustainable practices signifies a strong market orientation in a sample of local practitioners [81]. Not only that, but customer-focused companies are also better prepared to handle disruptions [82]. EN has been the key to the success and sustainability of their business until now through three generations. In fact, focusing on sustainability can serve as a source of competitive advantage and an obligation for new businesses [83].

Meanwhile, creativity in the context of culinary micro-enterprises in Bandung is a tool for business innovation, and it inherits hereditary cultural values aligned with the principle of environmental conservation. They combine local wisdom with contextual solutions to overcome limited resources, such as utilizing natural materials inherited from their ancestors as environmentally friendly packaging or processing production waste into value-added products. These practices do not emerge instantly but result from knowledge accumulated across generations, adapted to the needs of the modern market. For example, using banana leaves or bamboo baskets as a substitute for plastic is an economic decision and a form of ecological awareness passed down through family culture. Thus, creativity becomes a bridge between tradition and sustainability, where every innovation aims to minimize environmental impacts without eroding cultural identity. This finding aligns with study [84] on eco-entrepreneurship culture, but this study criticizes the limitations of a theory that does not touch on cross-generational aspects. The legacy of ecological knowledge from ancestors not only reduces waste but is also able to preserve the environment and become a unique brand differentiation. This dimension is neglected in conventional sustainability literature.

Current production models and consumption habits have caused several socio-environmental crises, such as food waste [85]. Transforming limitations into opportunities supporting natural sustainability is one of the strengths of the culinary micro-enterprises in Bandung that have survived for over a decade. Hereditary culture, such as the Sundanese “zero waste” principle that teaches maximum resource utilization, is the basis for creating an efficient and low-waste production system. This has become a form of cultural practice through non-verbal communication. They rely on conventional techniques and add creative touches, such as designing product packaging from natural materials. For example, current consumer preferences are more interested in corn leaf packaging because it is considered “natural”, without a formal campaign. This approach reduces pressure on the environment and strengthens businesses’ competitiveness. Food quality and environmental conservation are equally important for sustainable agricultural production [86]. In other words, creativity rooted in local culture catalyzes business practices that are economically viable and contribute to sustainable ecosystem development. This finding aligns with [21], emphasizing that local cultural values can strengthen sustainable business differentiation. An open attitude to change is also an important indicator of EC. The next generation does not hesitate to make operational adjustments that are considered more profitable for the organization without neglecting the environment, such as adopting the habit of sorting waste. This confirms previous findings that openness to innovation strengthens micro-enterprises’ resilience and flexibility to external challenges.

The results of this study support previous findings in the field of green business practices that emphasize the importance of business owners’ formal education as the primary basis for successful environmental performance [87]. However, this study extends that perspective by showing that EC as an internal resource also plays an important role in facilitating the achievement of environmental goals, especially in micro-enterprises in developing countries. By highlighting that internal cultural values can support the adoption of simpler and contextualized environmental practices, this finding provides a new empirical contribution to the discourse on the influence of EC on environmental performance and business sustainability.

6. Conclusions

This research confirms that SB in culinary micro-enterprises in Bandung City is determined not only by financial capability alone but also by the synergy between adaptive financial strategies, the strength of social networks, and EC values passed down across generations. EF, EN, and EC simultaneously support SB from economic, social, and environmental aspects. Business owners demonstrate that efficiency in resource management and risk mitigation, engagement in community networks, and the preservation of cultural values in daily business practices are the foundations that enable them to not only survive amidst limitations but also thrive contextually and sustainably.

Overall, the results of this study show that SB in micro-enterprises can be built on local, simple, and responsible daily practices. Values such as social collaboration, environmental awareness, and personal creativity are proven to strengthen businesses’ resilience and make them more relevant and adaptive to the challenges of the times. Therefore, sustainable micro-entrepreneurship strategies should not be equated with corporate approaches but should be read through community values, social relations, and an individual resilience that all grow in local contexts.

This research also notes that SB strategies in the context of micro-enterprises are not always in line with conventional approaches that emphasize access to formal financing as the key. Instead, the findings show that business owners rely more on internal funding and informal networks such as family or relatives, because they are considered more flexible, secure, and in line with their capacity, especially in the early stages of businesses’ establishment. In addition, this study also reinforces the argument that EF as an internal resource has a strategic role in driving an environmental performance that is more contextualized and easily applied by micro-enterprises, thus complementing approaches that have been overly reliant on external interventions such as formal education or structural regulations. As such, this study presents an alternative perspective, contextual and down-to-earth, while critiquing the dominant view in the global literature that tends to generalize formal institution-based solutions for all sizes of enterprises.

6.1. Theoretical and Policy Implications

This study extends the SB literature on micro-enterprises by emphasizing the importance of a context-based approach in understanding micro-enterprises’ dynamics in developing countries. By positioning EF, EN, and EC as mutually reinforcing elements, this study offers a different framework from conventional approaches that overemphasize external resources and structural formalities. This study also highlights how most approaches in the SB literature are still grounded in the framework of large-scale enterprises, thus tending to ignore the social dynamics, culture, and informality inherent in micro-enterprises’ practices. This study also provides an alternative approach based on community and local values of hereditary culture, which has been proven to promote economic, social, and environmental sustainability. By exploring the real-life practices of culinary micro-enterprise owners in Bandung City, this study shows that sustainability strategies can grow from down-to-earth everyday practices, not solely from high-tech interventions or structural policies.

Policymakers should formulate policies prioritizing support for micro-enterprises over rigid formal systems. First, fiscal incentives—such as tax reductions or grants—should reward sustainable practices such as natural packaging (e.g., banana leaves) and waste sorting. Local governments can establish waste processing centers, such as waste banks, that help microculinary businesses recycle organic waste into compost or animal feed. Second, access to finance must be decentralized: partnering with savings groups and financial technology platforms to offer unsecured microloans, using a digital transaction history (e.g., GoPay/QRIS) for credit assessment. Third, direct training should be provided through “Creative Houses” established in every city to teach digital literacy (e.g., Instagram Reels for marketing) and simple financial management tools.

Stakeholders, business associations, and NGOs can amplify their impact by creating joint branding platforms—for example, certifying traditional recipes as “Heritage Culinary Products” or eco-friendly packaging with “Local Green” labels to attract tourism and premium markets. Meanwhile, banks and fintech companies should facilitate the adoption of low-cost digital technologies, such as subsidizing POS systems for small shops. Finally, continuous local business networking exhibitions organized by local governments can connect micro-enterprises with suppliers, investors, and export opportunities to develop their businesses and ensure the sustainability of the culinary micro-enterprises themselves.

6.2. Limitations and Future Research

This study has limitations regarding the data set and its exploratory qualitative approach, as well as its focus on one micro culinary business sector in an urban area, namely Bandung, so the generalization of findings to other sectors or regions needs to be performed carefully. In addition, data were obtained through in-depth interviews within a specific time frame, so they do not represent the longitudinal dynamics of business sustainability. Further studies are recommended to use quantitative or mixed-method approaches to empirically test the strength of relationships between variables on a larger scale. Comparative studies between urban and rural areas, or between the culinary sector and other micro-sectors, can also uncover new insights into variations in sustainability strategies in different geographical and sectoral contexts. Further research could investigate the development of a set of variables (EF, EN, EC, and SB) and the relationships among these variables to deepen our understanding of the ideas presented in this paper. Simulation models should also be developed to support more grounded, sustainable business models for micro-enterprises and demonstrate these new business models’ environmental, economic, and social impacts.

In addition to methodological limitations, this study acknowledges theoretical limitations associated with the RBV. Although RBV provides a valuable lens for interpreting internal capabilities, it may not fully capture practices’ social and cultural embeddedness in informal micro-enterprise settings. Future research could combine RBV with institutional theory to examine how macro-level regulation interacts with micro-level resource mobilization. Additionally, cross-sectoral comparative studies (e.g., culinary SMEs vs. handicrafts) could reveal sustainability pathways across different sectors.