Exploring Sustainability in Startups: A Systematic PRISMA Review

Abstract

Startups are essential to solving contemporary global financial and social challenges. The purpose of this paper is to provide a systematic review of the literature on the economic, environmental, and social values of sustainability in startups. Research papers that included the terms “sustainability in startups”, “sustainability of entrepreneurship”, “environmentally friendly new businesses”, “startups”, “entrepreneur”, “sustainable development”, “green economy”, “green investment”, “green development”, “financial sustainability”, “entrepreneurship performance”, and “agriculture entrepreneurship” were considered for analysis. The PRISMA 2020 protocol was used for the screening of relevant articles addressing economic, environmental, and social sustainability in startups. This study is limited to 42 research papers extracted from SCOPUS and DOAJ databases covering the period 2010 to 2024. Most of these provide literature on European, American, and Asian countries, indicating that startups prioritise the economic value of sustainability. However, the review of the literature demonstrates that startups are beginning to adopt a more balanced approach to sustainability as all three pillars addressing economic, environmental, and social values are represented. Sustainable practices improve startups’ performance. There is a need for active research in startup sustainability in the African context to address the research gap identified in the analysis of the literature.

1. Introduction

Sustainability has become a major topic of global business and economic discussion in recent years. Across industries, sustainability is increasingly being demanded by consumers, investors, and governments owing to the increasing challenges faced in managing resources and promoting sustainable practices [1]. Green growth has created opportunities for new startup businesses, but it also poses challenges for some of them [2]. Embedded in an evolving market environment, startups have the advantage of embedding sustainable practices into their operations and strategies [3]. This gives them a competitive edge [4]. The pursuit of sustainability often involves complex trade-offs and the need for disruptive solutions, which can be overwhelming to startups with limited resources [5].

The concept of sustainability has emerged as one of the core elements of contemporary business practices, driven by increasing environmental degradation, resource depletion, and concerns about societal well-being [6]. Equally, issues such as social injustice and climate change globally provide more evidence for the need for sustainability. To strike a balance between economic growth and social and environmental obligations, businesses are increasingly expected to adopt sustainable practices [7]. While large companies have been at the forefront of implementing sustainability strategies, the role of startups in this paradigm is equally important but less explored. Startups can uniquely embed sustainability into their core operations and strategies from the outset because they are typically characterised by agility, innovative capability, and the potential for disruptive change [8]. This study is important in the sense that it explores the distribution of studies on sustainable practices in startups across the globe. It stresses the need to accelerate research on sustainable startup practices in regions or countries where significant sustainability research in startups is lacking.

According to [9], sustainability entails striking a balance between ecological integrity, social equity, economic growth, and resource efficiency to ensure a viable future for all. To achieve this, startups must develop business models that not only generate profit but also minimise environmental impact and benefit society. On the same note, Ref. [10] describes “sustainability impact” as the way sustainable startups contribute to sustainable development in the three dimensions of economic, social, and environmental value creation. Similarly, Ref. [11] notes that to maintain business sustainability, startups must consistently generate economic profits, achieve organisational and environmental sustainability, and secure employment sustainability. Ref. [12] claims that sustainability includes preserving the environment and social and economic resources. Similarly, Ref. [13] define business sustainability as the integration of environmental, social, and governance (ESG) factors into operations and decision-making. For purposes of this study, sustainability in startups is measured by economic, environmental, and social values. These three factors are vital for the viability and growth of startups and are essential for assessing the sustainable practices of startups.

A startup can be defined as an idea-driven company or venture that sells a new business model by combining creative ideas or cutting-edge technologies to address uncertain conditions [14,15] submits that startups are companies formed to test business models with new ideas, typically proposed by multiple co-founders or company members. In the context of this study, a startup refers to a small business or a large company established to provide a new product or service in an uncertain environment.

Most new startup businesses face significant hurdles that they need to overcome, including resource scarcity, high levels of competition, and pressure for rapid growth [16]. In this respect, the addition of sustainability would seem to put an additional burden. However, in recent years, evidence has been increasing that sustainability for startups could also become a competitive advantage [17,18], as it strengthens brand reputation and appeals to ecologically and socially sensitive consumers, besides attracting funding from investors who use ESG criteria [19]. Furthermore, the adoption of sustainable practices can result in cost savings, operational efficiencies, and long-term resilience, all of which are essential factors for the survival and success of new ventures [20]. Furthermore, actions that demonstrate an effect on sustainability will assist impact-focused sustainability startups by rendering them more attractive to sustainability-focused investors [10].

Many people believe that startups are the driving force behind sustainable development because of their rapid and innovative approach [21]. Instead of being burdened by traditional corporate systems, startups can explore innovative technologies, experiment with sustainable materials, and implement environmentally friendly processes. This suggests that startups can be at the forefront of bringing innovative market solutions to address existing environmental and social problems, such as climate change, loss of biodiversity, or inequalities in education, as well as helping to foster cleaner production or more sustainable forms of consumption [10]. Moreover, startups in sectors such as renewable energy, waste management, and sustainable agriculture are poised to address pressing environmental and social issues [22].

The pathway to sustainability, has however many challenges that startups need to overcome, including a lack of expertise in incorporating economic, environmental, and social objectives in their business models, financial constraints to investment in sustainability, and limited access to sustainable technologies or supply chains [23]. Similarly, the effects of sustainability on key performance indicators such as profitability, customer acquisition, and scalability remain a subject of debate. These complexities underpin the need for nuanced comprehension of how sustainability influences the course of new businesses. Furthermore, the concept of “sustainability” is itself not generally universally accepted [24,25]. In addition, balancing economic viability with environmental and social responsibility can create challenges that require careful consideration. Despite these challenges, the incorporation of economic, environmental, and social objectives into business strategies is now acknowledged as a crucial element in building resilience, maintaining customer loyalty, and accessing funding from environmentally conscious investors [26]. According to [10], it is still unclear how much the entrepreneurial endeavours of startups support the long-term growth of the economy, society, and environment.

This paper looks at how economic, environmental and social dimensions influence sustainability in startups. The majority of the studies focus on large corporations or specific industries (for example, energy and manufacturing) when analysing the integration of sustainability. Few systematic studies have been conducted on the adoption or implementation of sustainability practices across the three dimensions by startups, especially in the developing world, such as Africa, which is characterised by resource constraints and high failure rates. Although sustainability is complex, it is often treated unevenly by the literature, overemphasising the environmental aspect and neglecting economic or social aspects in startup settings. The startup literature lacks a unified mapping of the dimensions that are given priority. There is also fragmented and inconclusive evidence on whether the uptake of sustainability is positively correlated with startup performance metrics (for example, revenue growth, market share, customer loyalty, innovation). The lack of clarity hinders founders’ and investors’ ability to make strategic decisions. The specific research gaps this study fills are the absence of a systematic, comprehensive understanding of how startups adopt and prioritise sustainability dimensions, perform differently depending on their sustainability orientation, face challenges in integrating sustainability, and reflect these trends in the academic literature currently in publication. From the above discussion, the following research questions directed this study:

• Research question 1 (RQ1): What role does sustainability (economic, environmental, or social) play in startup operations?
• Research question 2 (RQ2): How do sustainability practices influence the business growth of startups?
• Research question 3 (RQ3): What are the most common sustainability dimensions (economic, environmental, social) emphasised in startups according to the existing literature?
• Research question 4 (RQ4): What are the challenges experienced by startups in integrating sustainable practices into their business models?
• Research question 5 (RQ5): What evidence exists regarding the relationship between sustainability adoption and startup performance?

This study makes several contributions to the existing body of knowledge. Using a systematic literature review, this paper advances interdisciplinary knowledge and develops a new model on sustainable business practices of startups. This expands the literature on sustainable startups and lays the ground for investigating the impact of economic, environmental, and social aspects on sustainability in startups empirically. This paper also guides startup strategies and investment decisions. This study offers insights on how sustainable business practices can enhance competitiveness, innovation, customer loyalty, and access to funding. This study also helps define benchmarks for assessing sustainability integration in startups, assisting policymakers and regulatory bodies in tracking progress towards Sustainable Development Goals (SDGs). Furthermore, this paper showcases the robustness of the PRISIMA approach in entrepreneurship research. This contribution offers a replicable evidence synthesis process for studying sustainability across different firms and regions.

With regard to the economic aspect of sustainability, this study found that startups that prioritise sustainable practices more readily attract funding from investors, have a better competitive edge over other businesses in the market, and normally experience a growth in revenue and a reduction in operating costs due to innovation. In addition, they provide a quality service to customers and have better financial performance over time. When examining the environmental dimension, the findings reveal that by embracing the environmental objective in their business models, startups minimise the consumption of materials and wastage in their operations. Considering the social perspective, sustainable practices lead to increased customer satisfaction and loyalty rates, as well as boosting employee satisfaction and retention rates. Although environmental and social sustainability are improving among startups, findings from the literature review indicate that the economic dimension dominates in the business models of startups. However, there is a lack of research on sustainable practices in startups in African countries. Startups have the potential to contribute meaningfully to the economies of countries if they are supported to successfully incorporate economic, environmental, and social objectives in their business practices.

The rest of this paper is structured as follows: Section 2 below discusses the methodology employed in gathering the relevant articles. Section 3 presents and discusses the results of the systematic literature review addressing RQ1 and RQ2. Following the research findings, Section 4 provides conclusions and limitations of this study before the recommendations for future research are offered.

2. Theoretical Foundations

The triple bottom line (TBL) serves as the foundation for this investigation. The TBL framework encourages companies to consider their social and environmental impact in addition to their financial performance [27]. It implies that in order to attain true sustainability, firms should strive to generate value in all three areas: the economic, social, and environmental. TBL, which includes the planet, people, and profits, has been presented by [28] as a response to the challenge of sustainability. TBL theory advises that firms have to be socially and environmentally responsible in their operations and, more importantly, a decent financial return can be achieved [29]. Figure 1 shows the TBL model.

2.1. Economic Sustainability

Economic sustainability is the first area among the dimensions of sustainability. In an unending cycle of competition, the establishment of a strategic market advantage through quality, cost, or time is quickly diminished or surpassed, giving the impression that there is little to no long-term sustainable competitive advantage [30]. The economic line connects the organisation’s growth with the growth of the economy and the degree to which it supports it [27].

2.2. Environmental Sustainability

Environmental sustainability is associated with reduced waste; pollution; energy use; emissions; consumption of toxic, hazardous, and harmful materials; and fewer environmental accidents [29]. The environmental aspect of TBL is all about adopting methods that do not harm the environmental resources for future use [27].

2.3. Social Sustainability

The third aspect of the TBL framework to be taken into account is social sustainability. Social partners or stakeholders are necessary because businesses cannot single-handedly address the world’s sustainability issues [30]. Organisations (and manufacturing facilities) that practice social sustainability guarantee the quality of life, foster diversity, foster connectedness both inside and outside the community, and offer equitable opportunities [29]. The premise is that these activities benefit society and benefit the local community. Paying fair wages and offering health insurance are two examples of these practices [27].

For a number of reasons, the triple bottom line theory is extremely pertinent to this investigation. By promoting a balanced assessment of economic, environmental, and social sustainability, the TBL theory expands the notion of sustainability and aids in determining whether startups are genuinely sustainable rather than merely profitable. Additionally, TBL is in line with the Sustainable Development Goals (SDGs) of the UN, which are fast becoming benchmarks for environmentally friendly corporate operations. By using the TBL framework, startups can show how they support global sustainability initiatives, which attracts impact investors and socially conscious customers. This study’s use of TBL offers a solid theoretical basis for the systematic PRISMA review. This enables us to formulate research questions centred on social, economic, and environmental aspects and to create a conceptual model based on an established theory.

3. Materials and Methods

The sections below detail the approach followed in searching, evaluating, and filtering articles through the selected database and set of terms.

3.1. The PRISMA Approach

The systematic literature review was carried out in accordance with the guidelines of the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA). Following [31], the aim of this review was to provide a transparent, reproducible, and exhaustive process for the identification, selection, and synthesis of studies. The PRISMA method outlines rigorous guidelines aimed at improving the transparency and clarity of systematic reviews [32]. As recommended by [33,34], the PRISMA method includes defining eligibility criteria, systematically searching multiple databases, screening and selecting studies, and analysing the findings. The first phase of the review involved searching and identifying relevant databases. This was followed by screening of the potential studies. The studies were then checked for eligibility in line with the research questions. Finally, the studies that met all the criteria were included in the final review.

The formulation of the research questions was guided by the Population, Intervention, Comparison, and Outcome (PICO) approach. The PICO framework is used to frame relevant study questions on the sustainability of startups, determining the scope of the review, designing and executing a search strategy, specifying eligibility criteria, as well as identifying potential sources [35]. The population (P) comprises startups (early-stage ventures); intervention (I) relates to factors being examined (economic, environmental, and social sustainability); comparison (C) looks at the changes brought up by economic, environmental, and social values in sustainability-focused startups; and output (O) comprises level of integration of economic, environmental, and social aspects in startup operations, as well as the outcome of business performance.

3.1.1. Database Identification and Searching

To find relevant studies, a comprehensive search was carried out across two electronic databases, namely DOAJ and Scopus. These databases were chosen for their comprehensive coverage of peer-reviewed literature relevant to the sustainability of startup businesses. The search strategy was developed with input from domain experts, and it was guided by the principles of Boolean logic. It incorporated key terms and synonyms related to the sustainability of startup businesses to maximise the sensitivity and specificity of the search. The search strategy included keywords, abstracts, sustainability, and startup subject headings, and free-text terms, which were tailored to the syntax and functionality of each database. An advanced search query used for Scopus in this study was as follows:

(“sustainability of startup businesses” OR “sustainability of entrepreneurship” OR “startups” OR “environmentally-friendly new businesses”) AND (LIMIT-TO (SUBJAREA, “BUSI”) OR LIMIT-TO (SUBJAREA, “SOCI”) OR LIMIT-TO (SUBJAREA, “ECON”) OR LIMIT-TO (SUBJAREA, “ENVI”) OR LIMIT-TO (SUBJAREA, “MULT”)) AND (LIMIT-TO (EXACTKEYWORD, “Sustainability”) OR LIMIT-TO (EXACTKEYWORD, “Sustainable Development”) OR LIMIT-TO (EXACTKEYWORD, “Entrepreneur”) OR LIMIT-TO (EXACTKEYWORD, “Entrepreneurship”) OR LIMIT-TO (EXACTKEYWORD, “Green Investment”) OR LIMIT-TO (EXACTKEYWORD, “Green Economy”) OR LIMIT-TO (EXACTKEYWORD, “Green Development”) OR LIMIT-TO (EXACTKEYWORD, “Financial Sustainability”) OR LIMIT-TO (EXACTKEYWORD, “Female Entrepreneurship”) OR LIMIT-TO (EXACTKEYWORD, “Family Business”) OR LIMIT-TO (EXACTKEYWORD, “Entrepreneurship Performance”) OR LIMIT-TO (EXACTKEYWORD, “Entrepreneurial Performance”) OR LIMIT-TO (EXACTKEYWORD, “Community Entrepreneurship”) OR LIMIT-TO (EXACTKEYWORD, “Business”) OR LIMIT-TO (EXACTKEYWORD, “Agricultural Entrepreneurship; Sustainable Development Indicator”)).

The searches were limited to articles, conference papers, and book chapters written in English; publications from the year 2010 to 2025; as well as specified subject areas (business management and accounting; social sciences; economics, econometrics, and finance; environmental sciences; and multidisciplinary). To ensure comprehensiveness, reference lists from identified studies were also screened for additional relevant articles. All retrieved studies were exported to Excel. Ref. [36] notes that Excel offers the benefits of data organisation, data cleaning and filtering, and tracking the progress of the screening process. In addition, the retrieved studies were imported into Mendeley Reference Manager for deduplication and further screening.

3.1.2. Screening

The screening process was systematic and adhered to the PRISMA guidelines for transparency and reproducibility. After initial database searches, all retrieved records were imported into Excel and Mendeley for deduplication and reference management, respectively. After deduplication, two reviewers independently performed a two-stage screening process that included (1) title and abstract screening and (2) full-text screening.

During the title and abstract screening, studies were assessed based on relevance to the topic of “sustainability of startup businesses”. Using Microsoft Excel, the screening process of abstracts was carried out by adding a column to assign codes to each abstract (coding: Yes = 1; No = 0; Maybe = 2). The researchers read the abstracts to see if they are in line with this study’s research questions. Articles not meeting the inclusion criteria were excluded at this stage. Full-text screening was then conducted for studies that were deemed potentially eligible. The reliability of the screening criteria was measured using agreement between two independent reviewers from recorded scores. Discrepancies between reviewers during the screening process were resolved through discussion, with input from a third reviewer in a few cases. The scoring assigned to individual abstracts was used to select articles that qualify. Articles with a code of 1 or 2 were downloaded, and those with a 0 were not downloaded. The entire process was documented, including reasons for exclusion, to facilitate transparency.

3.1.3. Eligibility

Studies were considered eligible for inclusion if they met the pre-defined criteria using Boolean operations based on search terms. The eligibility criteria ensured that the review captured comprehensive and high-quality evidence relevant to the sustainability of startup businesses. Eligible studies were those focused on the sustainability of startup businesses, considering factors such as economic, environmental, and social dimensions. Studies from all geographic regions and industries were included, provided they met other criteria. Articles published in peer-reviewed journals, conference proceedings, or book chapters were considered. Only studies published in English and within the timeframe 2010 to 2024 were included.

3.1.4. Inclusion and Exclusion Criteria

Exclusion and inclusion criteria were drawn up to safeguard the relevance and validity of studies that were selected. All 122 studies were carefully screened, starting from the abstract and up to the full publication. Reading led to the discovery of 42 studies, which, according to researchers, contribute to the sustainability of startup businesses. The research included studies explicitly focusing on sustainability practices, strategies, or outcomes in startup businesses. Besides timeframe and language criteria, inclusion was also based on subject area, which was limited to business management and accounting; economics, econometrics, and finance; social sciences; environmental sciences; and studies with a multidisciplinary outlook. Therefore, studies focusing on businesses other than startups, for example small to medium enterprises (SMEs), large corporations, or non-profit organisations, were excluded from this study. Furthermore, articles that did not address sustainability in the context of startups were not considered. In addition, studies with insufficient methodological detail or those not accessible in full text were not included. Figure 2 below presents and provides a detailed illustration of the entire process of article selection for inclusion in the systematic literature review (SLR) that was conducted, as outlined in the guidelines and format from the PRISMA 2020 flowchart.

4. Results and Discussion

The following sub-sections provide the results from a descriptive examination of the 42 articles selected to extend an understanding of business strategy, performance, and challenges of startups under the impact of sustainability practices. The examination included patterns in publication by year, geographical distribution of articles, and distribution by subject category.

4.1. Study Characteristics

The authors created unique identifiers for all studies included in the systematic literature review. The studies from Scopus were coded as S1 to S10, followed by S11 to S42 for those from DOAJ. Our sample was made of papers from the years 2010 to 2024 from the SCOPUS and DOAJ databases. We selected all articles focusing on economic, environmental, and social aspects, which we had identified as the three pillars of startup sustainability. From the screened articles, not much attention was given to sustainability in startups between 2010 and 2018. Therefore, the relevant studies discussing the sustainability values of economic, environmental, and social were located between 2019 and 2024. This suggests that research on the sustainability practices of startups became a major area of focus for researchers starting from the year 2019. Figure 2 below displays the trend of publications on startups per year from 2019 to 2024. Most articles were published from 2022 to 2024, reflecting a growth in sustainability research in recent years. A growth in publications represents a positive response from researchers to advancing knowledge on sustainability practices of startups in line with their business strategies, performance, and the challenges faced. The year 2024 has the greatest number of publications that continue to sustain the upward trend. We expect the upward trend to continue as the call for sustainability research is increasing globally, owing to opportunities and challenges faced by startups.

4.2. Publication of Articles by Year

Figure 3 reveals that publications decreased to 0 in 2020 from three articles in 2019. This decline may be due to external interruptions such as the COVID-19 pandemic that could have affected research work and publication timelines. After the trough in 2020, the increase was steep: 4 articles in 2021 and 13 articles in 2022. This reflects increased academic and industry interest in startup sustainability, most likely owing to increasing global attention to climate change and ESG concerns. In 2023, the articles decreased to seven articles, which may be interpreted as a slowing off or a potential refocusing of attention. The number recovered to a high of 15 articles in 2024, the highest in all years under observation. This sharp upsurge indicates fresh momentum, perhaps stemming from fresh policy action, sustainability finance, or emergent interest in sustainable entrepreneurship.

4.3. Articles by Country from 2019 to 2024

The distribution of studies by territory reveals that some countries have a greater research interest in the topic of the sustainability of startups than others. Notably, Brazil features mostly in the literature on sustainability practices of startups from the sample of 42 articles, with research from 2019 as revealed in Figure 3 below. In total, Brazil contributes 12% to the literature reviewed. It is also vital to note that Iran and Switzerland provide significant literature on the sustainability of startups, contributing 9.5% each to the weight of the results in the systematic literature review. Most countries each provide 2.38% of the weight in the systematic literature review. Notably, Nigeria, as the only representative from Africa, contributed a single article out of the 42 analysed. The 42 articles did not address the sustainability objectives of economic, environmental, and social in African countries. This shows that there is a lack of active research on startup sustainability in Africa, despite this being key for economic growth and job creation. In total, twenty-five countries are represented as sources for the literature reviewed in this study. Most of the countries covered are from Europe, Asia, and America. Figure 4 below shows the number of articles retrieved from Scopus addressing economic, environmental, and social dimensions in startups.

Figure 3. Publication of articles per year. Source: Own compilation.

Figure 3. Publication of articles per year. Source: Own compilation.

4.4. Articles by Subject Area

The distribution of articles by subject is shown in Figure 5 below. The findings suggest that the existing literature predominantly addresses business management and accounting issues (62%). This overwhelming representation implies that a business-oriented perspective is normally used to analyse sustainability in startups. Environmental sustainability in startups was found not to be a main research priority in environmental science itself, as indicated by the environmental sciences’ small contribution (7.17%) to the literature. This gap suggests the possibility of doing more multidisciplinary studies that integrate business management and environmental science. The field of Computer Science has another small body of literature (5.12%). This suggests a growing but still limited focus on the role of digital innovation in the sustainability of startups. Future studies in this area may grow as sustainable tech startups gain traction. Macroeconomic viewpoints on startup sustainability, including regulatory incentives, carbon pricing, impact investing, and economic sustainability indicators, appear to be understudied, based on the very limited contribution (4.9%) from economics. To develop comprehensive sustainability frameworks for startups, more multidisciplinary research is required, particularly incorporating ideas from environmental science, economics, and computer science. This broad viewpoint is crucial for improving comprehension of the difficulties faced by sustainable startups and enabling the development of more potent strategies to support entrepreneurial sustainability [32].

Figure 4. Distribution of articles by country. Source: Own compilation.

Figure 4. Distribution of articles by country. Source: Own compilation.

4.5. Contribution of Startups to the GDPs of the Countries with Literature Reviewed

Startups contribute between 1% (Italy) and 23.4% (Brazil) to the economies of countries, as shown in Figure 6. This suggests that there are notable differences in the GDP contributions of startups in various countries. The distribution on the graph is skewed to the right, with a small number of countries (such as Saudi Arabia, Nigeria, and Brazil) seeing substantially larger GDP contributions than the majority. Most countries are below 10%, with a few clustered between 2% and 5%, indicating either weak startup ecosystems or perhaps additional obstacles to startup impact. Startups’ average (mean score) contribution to national GDP is 5.7%, whilst the standard deviation is 5.78%, indicating high contribution variability that reflects significant variations in ecosystem maturity.

Brazil and Saudi Arabia demonstrate strong startup ecosystems that contribute meaningfully to their respective economies, thus indicating the presence of innovation-supportive policies and environments that facilitate entrepreneurship. In contrast, it is possible that countries with lower contributions, such as Pakistan and Italy, have unrealised growth potential in their startup industries, which suggests that supportive policies are needed to increase startup GDP contributions. The research indicates that there is limited literature about startup sustainability in Africa, pointing to a knowledge gap. This gap implies lost opportunities to learn about why startups succeed in African settings and what elements contribute to significant impact with little funding. Given Nigeria’s comparatively high startup contribution rate, there appears to be significant potential for startup-driven economic growth. This can result in the creation of jobs as well as in higher productivity.

4.6. Representation of Sustainability Values (Economic, Environmental, and Social) Across Reviewed Papers

This section examines how the reviewed literature addresses economic, environmental, and social sustainability values. By looking at the number of papers that address each of these three sustainability pillars, we examined how attention is distributed among them. We established more about the status of sustainability discourse in the startup ecosystem by comprehending the importance given to social responsibility, environmental stewardship, and economic viability. Figure 7 shows the number of papers that concentrate on each sustainability dimension.

Of the forty-two [37] articles that were analysed, economic sustainability was the most often covered dimension, and it was addressed in forty of the articles [34], indicating a high level of interest in the financial viability of startups. This implies that startups are conscious of the position that economic performance holds as a foundation for sustainability. Social and environmental sustainability were also adequately addressed, with thirty-four [20] papers directly addressing environmental sustainability. Though lower than economic issues, this indicates a strong consciousness of environmental issues, which may indicate that while startups are prepared to react to environmental impacts, the economic aspects may be given precedence over these. In addition, thirty-five [31] papers covered social sustainability. This demonstrates that there is a significant focus on social issues, such as the involvement of people and social justice, which are important for a holistic approach towards sustainability.

The large number of papers [34] focusing on economic sustainability suggests that startups place a high priority on this aspect, most likely because of their urgent need to be profitable and competitive. This also suggests that for most startups, the sustainability process will be thought of primarily in economic terms. However, the comparatively close numbers for social [31]) and environmental [20] sustainability values indicate a growing understanding that social responsibility and environmental stewardship are just as important for long-term success as financial viability. All three pillars of sustainability are adequately reflected in the startup literature, as reflected in the findings. However, the slightly reduced but still substantial consideration of social and environmental values indicates broader societal and environmental concerns as increasing drivers, albeit still focused on less than economic incentives. Altogether, the results indicate that while sustainability considerations are increasingly integrated into startup strategies, economic priorities remain dominant.

4.7. Content Analysis

From the 42 articles retained after the screening process, the discussion of findings focuses on the role of sustainability in startups in advancing economic, environmental, and social dimensions in their business models. Furthermore, the results on the relationship between sustainable business practices and the performance of startups are discussed. The final part concentrates on the discussion of challenges faced by startups in incorporating economic, environmental, and social aspects in their practices.

4.7.1. Economic Dimension

Access to Funding

Green finance opportunities have been effectively accessed by numerous startups, resulting in improved market competitiveness and performance [35]. Although female-led sustainable startups are growing, they still encounter major obstacles when trying to obtain funding [38]. Remarkably, new data indicate that funding for female-led sustainability startups has increased, making up 24% of all investments in businesses established in the last five years [38]. However, research shows a glaring gender gap in funding within sustainable startups, especially those with female founders, despite the encouraging environment [35]. For example, women make up 23% of the founders of sustainability startups, but they only receive 2.2% of all investments made in this sector [38]. This disparity emphasises how specific financial assistance is required to advance gender parity in sustainable entrepreneurship.

Higher survival rates and growth trajectories are associated with the incorporation of sustainability into business strategies, highlighting the importance of sustainable entrepreneurship in promoting economic development [39]. In addition, because investors are becoming more interested in supporting startups that meet environmental and social governance (ESG) standards, sustainable startups have easier access to capital and partnerships [40]. In addition to putting sustainable startups in a good position to attract investment, this trend helps them create loyalty among customers who value ethical consumption [40]. In addition, the focus on sustainable practices makes it easier to find funding opportunities because many investors want to support startups that align with or share their values in sustainable development [18].

Costs Savings

Moving on to operational efficiency, ref. [25]’s research shows that sustainable practices have a major impact on cost savings, increased brand recognition, and improved operational efficiency. According to [25], startups that incorporate sustainability into their core strategies tend to report better long-term performance metrics. This indicates that a commitment to sustainability can be both financially and morally imperative. Accordingly, startups that put sustainability first usually report better performance metrics, such as increased employee engagement and customer satisfaction [25].

Furthermore, startups can boost operational efficiency, lower expenses, and raise revenue through digital innovation [41]. Startups can reduce operations, respond quickly to disruptions, and proactively manage risks by leveraging cutting-edge tools and data analytics [42]. As argued by [42], innovative solutions like blockchain, Internet of Things sensors, big data analytics, and machine learning enable startups to efficiently manage risks and optimise operations while effortlessly adjusting to changing market conditions.

Innovation

Furthermore, startups, especially those utilising the most recent advancements found in Industry 4.0 technologies, must prioritise sustainability. With sustainable innovations that boost their competitiveness, startups are actively reshaping the market rather than just participating in it [43]. In this context, adopting sustainability helps startups stand out from the competition, attract environmentally conscious customers, and adjust to regulations that support more sustainable business practices [44]. For example, incorporating environmentally friendly technologies and materials helps startups gain a competitive advantage while simultaneously addressing environmental issues. This suggests a paradigm shift in which business viability is synonymous with sustainability [44]. In the same view, social media and sustainability have greatly increased customer interaction, which has changed how businesses view and evaluate performance [45].

Moreover, sustainable practices can stimulate innovation in product development and operational efficiencies, ultimately creating a competitive advantage [46]. For instance, startups can reduce expenses and increase profitability by implementing the tenets of the circular economy, which minimise waste and maximise resource use [46]. According to research by [47], startups that successfully apply sustainable business models typically experience increases in stakeholder engagement, customer satisfaction, and operational efficiency. Their emphasis on sustainable practices puts them in a favourable position within their respective industries, giving them a competitive edge that is becoming increasingly important in the fast-paced market of today [47].

Furthermore, the research by [38] demonstrates that startups founded on sustainability are likely to receive increased investment, considering that they provide innovative solutions central to addressing present needs. This vibrant environment is especially evident in the Indonesian market, where heightened sensitivity towards environmental concerns makes consumers support businesses showing an inclination towards sustainability [48]. Thus, this alignment not only strengthens brand reputation but also provides access to a greater customer base seeking ethically manufactured products and services [48]. According to a study by [49], startups in Thailand’s agriculture industry actively use digital capabilities to improve their sustainability practices. This flexibility puts them in a position to take advantage of the growing consumer preference for sustainable practices as well as meet market demands for eco-friendly products [49]. These businesses can demonstrate their dedication to sustainability and align with the principles of the circular economy by using open eco-innovation strategies to turn agricultural residues into value-added products [49].

4.7.2. Environmental Dimension

The study by [35] shows a strong link to the 2030 Sustainable Development Goals (SDGs), implying the ability of sustainable practices to assist in global goals while addressing local environmental issues. In this context, startups are increasingly expected to integrate these principles into their business models [35]. Consequently, the integration of sustainability values into business models not only responds to imminent environmental concerns but also adheres to the global pattern of increasing consumer demand for green products and services [38].

Furthermore, the role of sustainability is even more increased by how green startups position themselves within the global SDGs [50]. Specifically, such businesses target reducing carbon footprint, encouraging environmentally friendly activities, and advancing ecological welfare, thus illustrating that sustainability constitutes a fundamental pillar of their business models [50]. According to [47,51], startup firms in the fashion business harness sustainability as a key value proposition, in so doing distinguishing their business model from conventional ones. By embracing the concepts of a circular economy, such as waste minimisation, resource efficiency, and the prolonging of product lifecycles, these startups not only enhance their appeal to the market but also contribute meaningfully towards driving systemic change in a sector that is notoriously known for its environmental footprint [51]. Such alignment not only creates a good brand reputation but also attracts environmentally conscious customers, thus enhancing competitiveness in the market [50]. Given these findings, sustainability has emerged as an imperative aspect for startups, working both as an innovation catalyst as well as being a necessary response to the mounting environmental, social, and governance issues facing today’s society [18]. As such, this emphasis on sustainability is not only serving the evolving consumer preferences but also providing a conducive ecosystem for startups to grow.

According to a seminal study carried out in Brazil by [24], sustainable entrepreneurship stimulates innovation by motivating startups to create solutions that tackle urgent environmental issues such as resource depletion and climate change. Instead of being just a trend, this alignment with sustainability principles represents a fundamental change in how startups view their place in the larger framework of agribusiness and society [24]. Notably, the study emphasises that, in line with the findings of [37], sustainable startups frequently demonstrate a greater capacity for innovation. These startups are more likely to solve problems creatively and look for new growth opportunities when they prioritise sustainable development. As a result, this proactive strategy can lead to the development of economically and environmentally viable goods and services, strengthening the startup ecosystem [37]. In addition to quality assurance, startups are also aggressively investing in simple and green packaging that minimises the use of material and wastage. By enhancing resource effectiveness and significantly reducing waste, these actions not only serve the aim of solving environmental sustainability but also contribute to attaining the formation of a more robust supply chain. This translates to lower costs and lower environmental impact [42].

According to [52], bioenergy startups that concentrate on creating environmentally friendly biofuels have attained an impressive 78.6% compliance rating with circular economy principles. This high degree of adherence highlights the startups’ commitment to sustainability, which is beneficial given the state of the market [52]. Thus, startups can use this commitment to set themselves apart from competitors if they successfully incorporate sustainability into their business models [53].

To develop sustainable goods and services, startups are increasingly utilising cutting-edge technologies. The focus on Industry 4.0 is essential because it encourages effective waste reduction and resource use, which eventually improves startup performance in the green sector [35]. In addition, the ability of sustainable startups to innovate and adjust to shifting market conditions is frequently closely associated with their performance. Furthermore, compared to established businesses, startups show a noticeably stronger correlation between digital capability and open product eco-innovation [49]. This highlights how well startups use digital technologies to create eco-friendly products. Rapid innovation enables startups to adapt quickly to changing consumer demands and environmental issues, which eventually improves their economic viability [49]. Similar to this, sustainable startups are renowned for their innovativeness, especially in fields such as technology, renewable resources, and conscientious consumption [21]. In addition to opening the door for the creation of unique goods and services, these developments put startups in a competitive position in markets where sustainability concerns are becoming more important.

Operational efficiencies such as decreased resource waste and enhanced supply chain transparency are fostered by sustainable practices [24]. Blockchain and the Internet of Things, for instance, improve food production traceability and build trust with partners and customers [24]. Startups can use these tools to better understand operational difficulties and market demands, which will help them make well-informed decisions that promote growth and profitability [43]. According to [54], startups that prioritise sustainability often realise improvements in operational efficiency and reduced costs over time. This supports the notion that these startups can increase their profitability and make a positive environmental impact by implementing sustainable practices, such as using renewable resources and reducing waste [54].

4.7.3. Social Dimension

Beyond their financial contributions, sustainable startups have a significant impact on social welfare because they generate jobs and encourage regional economic diversification, especially in developing countries [50]. Research shows that these businesses’ dedication to moral behaviour and smaller environmental impact results in increased customer satisfaction and loyalty rates [44]. Increased employee engagement and retention rates can also result from coordinating corporate operations with sustainability objectives. This alignment fosters a positive internal culture that encourages innovation and high performance by highlighting the broader social impact of sustainable entrepreneurship [44]. Startups can improve employee involvement, retention, and satisfaction with sustainable human resource management practices, resulting in a more successful, prosperous company [55].

Firms can either engage in activities that are constructive and useful to the welfare of society or in those that can negatively affect the stakeholders of their business [56]. Sustainable business practices are liable for establishing a sound internal control system, thus enhancing the governance standard level and resource allocation of firms and avoiding adverse impacts [56]. In addition, the distinguishing factors among sustainable entrepreneurial ecosystems are stakeholder value creation, environmental preservation, and natural resource protection. These involve leveraging the resources to ensure that the communities relying on such ecosystems are protected and having market incentives that encourage cooperation in sustainable business ventures. Moreover, social and local sustainability support and the requirement of ensuring conservation of the environment and natural resources are important [57].

Startups usually implement strict certification programs and quality control measures to ensure compliance with regulatory requirements and client expectations [42]. These standards are critical for resilience and sustainability because they significantly lower the risk of product safety issues and recalls. In this regard, minimising waste and making effective use of resources directly contribute to the goals of environmental and social sustainability [42]. Nonetheless, it is important to note that labour shortages pose significant challenges for startups, mostly owing to immigration laws and demographic changes. According to [42], ethical and sustainable supply chains depend on upholding worker rights and guaranteeing fair wage practices. Notably, startup companies must operate under fair pay, ethical management, and good working conditions for employees [42]. Therefore, this dedication to worker welfare eventually promotes a more sustainable and socially conscious operational model, even though it may result in higher labour costs.

For digital startups to grow steadily, innovation is essential. Ref. [45] contends that knowledge sharing, which coordinates resources, capabilities, and core competencies essential for sustainability, drives the ongoing development of digital startups. The authors also stress how social media greatly speeds up the connection between sustainability and innovation in digital startups. Essentially, by promoting traits and imagery linked to entrepreneurship, social media can have an impact on the venture creation phenomenon [45]. As such, digital startups operate in a highly dynamic business environment that demands ongoing adaptations to market trends, highlighting the significance of close stakeholder communication for ongoing development [45].

Finally, the global business landscape is changing owing to the increased awareness of environmental, social, and governance (ESG) issues, which has made sustainability an essential element of startups rather than just a strategic choice [32]. Startups that successfully adopt sustainable practices will benefit greatly from this increased awareness since they will be in a better position to balance financial gains with social and environmental obligations [32].

Table 1. Summary of the economic, environmental, and social sustainability in startups.

Category	Value	Description	References
Economic value	Access to funding	Investors are becoming more interested in supporting startups that meet environmental and social governance goals.	[18,35,38,40].
	Costs savings	Startups can boost operational efficiency, lower expenses, and raise revenue through incorporating sustainable practices in their business models.	[25,41].
	Innovation	The ability of startups to innovate and adapt has a significant impact on how well they perform when they embrace sustainability.	[38,39,40,43,44,45,49,54,58].
Environmental value	Waste minimisation and resource efficiency	Such alignment not only creates a good brand reputation but also draws environmentally conscious customers.	[35,50,53].
	Resource depletion and climate change	Sustainable entrepreneurship stimulates innovation by motivating startups to create solutions that tackle urgent environmental issues.	[24,42,54].
	Creation of eco-friendly products	Rapid innovation enables startups to adapt quickly to changing consumer demands and environmental issues, which eventually improves their economic viability.	[24,40,49,52].
Social value	Enhances the business’s reputation	Enterprises create a good brand reputation and attract environmentally aware customers and investors.	[42,44,56]
	Comply with legal and customer standards	Startups usually implement stringent certification programs and quality control processes to meet regulatory requirements and client expectations.	[42]
	Upholding worker rights and guaranteeing fair wage practices	Ethical and sustainable supply chains depend on upholding worker rights and guaranteeing fair wage practices.	[42,45,55].

Source: Own compilation.

below presents a summary of the role of sustainability in startups.

Notwithstanding these possible opportunities of achieving economic, environmental and social dimensions of sustainability, it is important to understand that many startups face significant challenges in attaining long-term success. The results show a substantial discrepancy between the intention to pursue sustainability and the actual application of sustainable practices. This disparity emphasises how crucial it is for startups to clearly define their sustainability objectives and create workable plans to achieve them. Sustainable startups can better negotiate the market’s complexities and use their initiatives for sustained success by filling this gap.

4.7.4. Effect on Startup Growth

Studies Highlighting the Positive Effect of Innovation

Given Indonesia’s rapidly expanding digital economy, the performance of sustainable startups has demonstrated some positive outcomes [39]. Businesses that prioritise sustainability frequently experience improved market positioning, lower expenses, and increased operational efficiencies [39]. Equally, businesses that use eco-friendly practices, for example, usually save money by using fewer resources. In a similar vein, sustainable startups can increase their market share and profitability by reaching out to consumer segments and emerging markets that value ethical consumption [39].

The ability of startups to innovate and adapt has a significant impact on how well they perform when they embrace sustainability. According to [58], sustainable startups are more likely to attain greater growth rates and better financial performance because they can quickly adapt to changing consumer preferences and tap into emerging markets. These startups can attract clients who place higher value on social and environmental responsibility by incorporating sustainability into their core business plans [58]. Ref. [59], who discovered that startup managers’ mindsets increasingly emphasise sustainability as a key driver of innovation, supports this trend. Therefore, sustainable practices improve these startups’ value proposition in addition to cutting costs, proving that sustainability can spur growth rather than impede it.

Importantly, ref. [40] points out that startups that prioritise sustainability can significantly increase their capacity for innovation, operational effectiveness, and stakeholder engagement. Ref. [54] emphasises this even more, pointing out that open innovation is a common practice for sustainable startups, working with outside partners to expand their capabilities and market reach. In addition to accelerating innovation cycles, these cooperative strategies give sustainable startups access to new markets and clientele, strengthening their competitive edge. In addition, by incorporating sustainability into their business plans, startups establish themselves as industry leaders and attract crucial funding and resources that support expansion [54]. According to [4], encouraging knowledge-based interactions among team members can result in creative solutions that greatly advance social and environmental objectives in addition to improving financial results.

Studies Highlighting the Effect of Integrating Social and Environmental Objectives

Startups that successfully utilise the ten major sustainability enablers, particularly collaborations, resource management, and a clear vision, are more likely to succeed eventually [58]. Ref. [53] expands on this view by arguing that startups that prioritise sustainable practices not only improve the well-being of society but also increase their operational resilience and competitiveness in the market. Furthermore, it is becoming more widely acknowledged that incorporating sustainability into business models is a crucial innovation driver that helps startups stand out in a crowded market [37,53,54]. A larger customer base and increased loyalty are the results of this alignment with sustainability principles, particularly since modern consumers are more likely to support companies that exhibit social and environmental responsibility [53].

Complementing this, ref. [52] proposes that startups focusing on compliance with EU environmental legislation and sustainability principles experience considerable growth in their brand image and market position. Such convergence not only meets regulatory conditions but also attracts a growing number of environmentally aware consumers [52]. Moreover, the independent model of startups prevalent in Indonesia promotes the incorporation of sustainability into core operations from the very beginning [39]. This approach offers a strong basis for sustainable development [39]. Likewise, research on startups in Brazil highlights the awareness of the need to integrate sustainable practices into business models [24]. By aligning their objectives with sustainability objectives, such startups not only gain market appeal but also contribute to environmental and social outcomes, as noted by [24]. Consequently, sustainability presents itself as a platform where startups can make a difference and innovate. By incorporating sustainability into their underlying business models, they manage to capitalise on social entrepreneurial opportunities that resonate with evolving consumer values [40].

In fact, the robust correlation between the identification of social entrepreneurial opportunities and startup growth demonstrates how sustainability can have both social and economic benefits. According to [40], this further supports the idea that ethical business practices are essential for long-term survival. Since socially and environmentally conscious practices can stimulate innovation and provide competitive advantages, startups are more generally integrating sustainability goals into their business models [54]. It is noteworthy that these startups use digital technologies to innovate and provide sustainable solutions like waste reduction and resource optimisation [54]. As a result, by integrating sustainability into their core business strategies, startups attract clients who value ethical consumption while simultaneously addressing pressing global issues such as food security and climate change [54].

Furthermore, as discussed by [60], grassroots entrepreneurs’ core competencies have a major impact on the sustainability of their businesses, promoting both community development and business growth. Accordingly, startups that incorporate sustainable practices into their business plans stand a better chance of attracting investors and customers who are becoming more environmentally conscious, which will improve their market performance [60,61]. This change is in line with the increasing demand from customers for eco-friendly goods and services, which has encouraged new businesses to incorporate sustainable practices into the foundation of their business plans [14].

4.7.5. Challenges Faced by Startups Fulfilling Economic, Environmental, and Social Values of Sustainability

Startups in the digital sector face many challenges that can discourage their advancement, such as disruptions and intense competition, a fast-evolving business climate, and rapid fluctuations in the market [45]. As startups become more vital for future opportunities and development, it is essential that they build resilience to attain sustainability [45]. Consequently, the resilience of digital startups has been a focal point for scholars in relation to how they can overcome challenges in the form of climate change impacts, supply chain disruption, and shifting market trends [42]. For instance, startups can enhance their resilience through diversifying their supply base, which allows them to better withstand unforeseen circumstances such as natural disasters [42]. The following challenges were identified from the articles reviewed.

Financial Barriers

Even with the growing popularity of sustainable startups, many still struggle to receive enough funding [35]. Startups’ capacity to scale their sustainable practices is significantly hampered by high interest rates and a lack of customised financing options [35]. Cash flow problems that many startups face exacerbate this financial obstacle, making it more challenging to set aside the required funds for sustainability projects [44]. Moreover, a significant obstacle is the perception of risk connected to sustainability-focused business models [38]. Investors might be biased against projects that put environmental concerns ahead of short-term financial gain, which would restrict their ability to obtain the required capital [38]. Financial limitations prevent many startups from investing in environmentally friendly technologies or procedures [25]. Lack of capital access becomes a critical issue in this context since adopting cutting-edge sustainable technologies requires sufficient funding [39]. Many startups are limited by this lack of resources, and this frequently makes it difficult to invest in sustainable practices or environmentally friendly projects [24]. As a result, financial constraints make it more difficult for startups to compete with bigger, more established companies that can afford the expenses of sustainability projects [39].

In addition, startups may not be able to prioritise sustainability initiatives that may not yield immediate returns owing to limited budgets [53]. Even though startups are usually agile, they frequently lack the capital and industry knowledge that more established companies have, which further restricts their ability to successfully scale sustainable practices [49]. According to [49], startups seek partnerships and support from a range of stakeholders, including governmental initiatives and research institutions, to navigate this complex landscape, which demands a balance between innovation and financial sustainability. According to [24], the bureaucratic process of obtaining grants and loans can make these difficulties worse and frequently lead to delays that inhibit innovation.

Many startups have limited financial and human resources, and this continues to be a major obstacle [4]. Compared to more established companies, startups are at a disadvantage because of the lack of resources, which directly affects their capacity to invest in sustainable technologies or processes [40]. The initial expenses of creating sustainable initiatives and technologies are a major barrier that many early-stage startups find difficult to bear [51]. Many sustainable startups have limited resources, which makes it difficult for them to invest in the technologies needed to carry out successful sustainability initiatives [4,54]. Their ability to expand operations or change course in response to market demands is frequently hampered by financial limitations [54].

Obtaining financial support from traditional investors, who frequently put short-term profits ahead of long-term sustainability objectives, is a challenge for many startups [21]. Their capacity to create and execute creative, sustainable solutions may thus be severely hampered by funding shortages [37]. In addition, ref. [59] stresses that overcoming these obstacles requires an awareness of the entrepreneurial mindset. Startup managers have to skillfully strike a balance between the demands of promoting innovation and overcoming resource constraints and competitive market dynamics.

In addition, ref. [38] points out that it is difficult to categorise startups as “sustainable,” since many of them incorporate elements from different industries, making it more difficult to evaluate their sustainability impact. Because investors find it difficult to identify startups that truly align with sustainability goals, this lack of clarity frequently results in inconsistent funding and support. Furthermore, the dominance of a small number of high-performing businesses can distort the startup ecosystem’s overall image by casting a shadow over smaller sustainability initiatives that might not receive as much funding or attention [38]. Therefore, this funding concentration puts new businesses at a competitive disadvantage, especially those run by women [38].

However, it is vital to appreciate the fact that the performance of sustainable startups is usually hampered by a variety of challenges. For instance, a bibliometric analysis by [60] identifies major constraints in the funding landscape that impede these startups from acquiring the essential resources and capital needed to pursue sustainable activities. Moreover, such limitations are even more prominent within the emerging new bottom-of-the-pyramid (BOP) markets in which stringent economic limitations negatively influence the proper functioning of sustainability-initiated projects [60].

Ref. [14] notes that to make matters more complicated, a lack of venture capital can make it more difficult for sustainable startups to invest in cutting-edge practices and technologies that usually demand large upfront expenditures. The market environment is further complicated for these creative startups by the competition from well-established businesses that might not place a high priority on sustainability [61]. Therefore, the interaction of these elements highlights the complex obstacles that sustainable startups face in their quest for growth and influence.

Regulatory Hurdles

Ref. [35] draws attention to the challenges that startups face because of current regulations, especially when attempting to navigate the intricate world of green finance. Startups may find it difficult to comprehend compliance requirements, which can hinder their ability to grow [35]. In addition, these difficulties for female ventures may be made worse by cultural preconceptions about gender and entrepreneurship, which would make it more difficult for them to navigate through a complex regulatory landscape [38].

Besides the above issues, the absence of standard frameworks for measuring the effect of sustainability can also prevent startups from demonstrating the value of their work to stakeholders [25]. Thus, the dynamic nature of sustainability policies necessitates constant realignment, which strains the operational capabilities of startups [25]. Furthermore, building a culture of sustainability within an organisation is crucial. This might be particularly challenging to achieve when the business is accustomed to traditional practices [25].

Based on these regulatory challenges, ref. [46] reveals that there is a common gap between sustainability principles and practice. Startups tend not to implement sustainability in a manner consistent with their business models [46]. Therefore, most startups are unsure of the exact steps that need to be taken to implement sustainability, which results in either inaction or merely following sustainability standards [46]. This uncertainty is also driven by the complex regulations that startups must adhere to, especially when they lack the much-needed knowledge or support [46]. This complexity can thus deter startups from pursuing ambitious sustainability goals because they will concentrate on survival in the short run at the expense of sustainable long-run procedures [46].

Furthermore, a lack of regulatory support and incentives significantly weakens startups’ ability to innovate sustainably [47]. For example, insufficient robust public policies and incentives can deter startups from embarking on ambitious sustainability ventures in the first place [47]. This challenge is reflected in the significant hurdles presented by the complexity surrounding the uptake of sustainability measures [52]. Such being the case, startups are prone to struggling with environmental policy adherence and proper application of sustainable technologies, primarily because of insufficient resources and experience [52].

Furthermore, the gap in knowledge of sustainable practices among startup owners and employees cannot be overlooked. Poor training and mentorship regarding sustainability in business incubators usually result in missed opportunities for startups to innovate and embrace best practices in sustainability [39]. Therefore, regulatory difficulties, along with the absence of supportive policies, can further discourage startups from venturing into sustainable initiatives, while complex regulations can indeed be resource-draining [39]. In addition, startups are subjected to environmental sustainability regulatory challenges that deter them from embarking on sustainability programs [50]. The absence of supporting policies and incentives contributes to the complexity, which makes it challenging for startups to prioritise sustainability without incurring additional costs or risks [50]. The study by [50] points out that regulatory impediments and an insufficiently developed entrepreneurial ecosystem are constricting innovation. Most startups also lament being faced with immense difficulties in manoeuvring the intricate network of environmental legislation and obtaining necessary certifications that consume resources and distract them from their core business [60].

Furthermore, according to [60], a dependence on external partners for capital and support has the potential to introduce vulnerabilities, especially amid unpredictable markets. This dependence raises important questions regarding the viability of their business models if regulatory regimes change. Therefore, startups must grapple with the uncertainty brought by compliance requirements and evolving standards around sustainability. Operationalising such rules is not only about familiarity with domestic and international regulations but also about the capacity to adapt according to changing needs [53].

This adaptability challenge is particularly important for early-stage startups that do not yet have the legal and compliance infrastructure that better-established companies have [53]. Moreover, adapting to varying regulations in varying places makes it harder to scale, and it increases compliance expenses [51]. In addition, the fragmented character of the startups, with both established firms and new entrants, can create competitive forces that hinder the establishment of sustainable practices [51].

Market Competition

There are many obstacles facing green startups, especially when it comes to competing with established companies that do not prioritise sustainability [35]. Notably, a demanding market environment is created by the pressure to maintain environmentally friendly practices while offering lower prices. In addition, navigating sustainability-related regulations can be difficult, particularly for new entrants to the market [25]. In fact, the results show that consumer resistance and the market’s general inclination for less expensive alternatives can seriously jeopardise the viability of sustainable products [47]. Startups must therefore not only innovate but also inform customers about the intrinsic value of sustainability to overcome this obstacle.

Furthermore, the competitive landscape is complicated by the fact that startups must compete not only with well-established and long-standing companies with greater resources, but also with other startups [52]. The dual competition makes it extremely challenging since it tends to divert from essential investments in long-term sustainability initiatives that can yield immense dividends in the long term, causing startups to focus on short-term monetary returns [52].

In addition to that, there are also issues with the lack of infrastructure and support mechanisms in the emerging economies. For instance, startups are commonly confronted with the difficulty of scaling up their operations and adapting technologies to the local contexts [24]. The challenge is particularly intense for the agricultural sector, where traditional practices may conflict with novel and sustainable approaches [24]. In addition, these startups also face the real threat of having to compete against larger, more established companies with better resources and market influence [54]. Therefore, when these incumbents also adopt the same sustainable initiatives, it can make it increasingly difficult for the startups to differentiate themselves [54].

According to [32], there is still a significant gap in the literature about the competitive advantages of sustainable startups, even though these issues are becoming more widely recognised. Although sustainability has been extensively studied, a few studies have examined the particular advantages and challenges faced by sustainable startups as opposed to conventional companies. It is essential to fill in these gaps in the literature to guide future studies and offer useful information to both entrepreneurs and policymakers.

Technological Limitation

The availability of new technologies is crucial to the adoption of sustainable practices by startups. However, many startups are seriously not able to obtain the necessary technology, thus compromising their ability to develop and grow sustainably [35]. In addition to this, constant innovation is also important for the success of sustainable startups. However, startups might lack the necessary resources and time to invest in required research and development activities [47]. Not only does this restrict their capacity to produce new, sustainable products that satisfy the needs of the market, but it also inhibits their overall growth.

Moreover, the study by [58] establishes that while technological development presents great room for sustainable innovation, it also requires deep investments and knowledge that most startups lack. This highlights a critical nexus between technology access and innovation capability, pointing towards the need for intervention by stakeholders and policymakers. This intervention is required to ensure a better entrepreneurial environment for these new companies [58].

Ref. [49] also point out other barriers, including poor access to advanced technologies, high implementation costs, and unfamiliarity with circular economy concepts. These can potentially restrain startups considerably from realising the maximum potential of eco-innovation. Compounding these are poor traditional infrastructure for recycling and waste management, which is a key barrier, particularly in emerging economies such as Thailand [49]. Furthermore, startups are also faced with regulatory obstacles and insufficient supportive infrastructure for sustainable measures, further restricting their ability to innovate and evolve [54].

Finally, as much as developing sustainable practices is a path of development and diversification for startups, developing it is hampered by numerous challenges, demanding strategic planning and deployment of resources. In overcoming these hurdles to scale, collaboration, investment in innovation, and leveraging into digital transformation are of paramount importance. Consequently, such methods could provide the foundation for more sustainable practices in the startup ecosystem. In addition, the study emphasises stakeholder engagement to enhance sustainability. Startups usually must interact with various stakeholders, including investors, customers, and regulatory bodies, to effectively integrate sustainable practices [46]. Reconciling the interests of these various stakeholders, however, may prove challenging, particularly where short-term returns are more crucial than long-term sustainability objectives.

Organisational Culture

The complex nature of social entrepreneurship requires that startups navigate complex stakeholder relationships [40]. In addition, startups frequently struggle internally with a short-term outlook that prioritises short-term financial returns over long-term sustainability investments [47]. Achieving sustainability while balancing the demands of multiple stakeholders, such as investors, consumers, and community members, can cause conflict and make decision-making more difficult [40].

Consequently, startups often find it difficult to match their operational objectives with the more general social goals they hope to accomplish, which may result in priorities becoming incompatible [40]. In addition, the study by [51] shows that the social aspect of sustainability typically gets less attention than the environmental and economic aspects, which are frequently given priority. Owing to this oversight, startups may find it more difficult to incorporate crucial social sustainability practices into their business models, such as fair labour practices and community engagement. This could ultimately undermine their overall sustainability goals and drive away socially conscious customers [51].

These problems are made worse by the ever-changing digital landscape. Startups must strike a balance between the long-term objectives of sustainability and the short-term demands of growth and profitability [4]. The investments required for sustainable practices and short-term gains frequently conflict because of this delicate balance. As a result, leaders in these startups must develop an organisational culture that drives performance and prioritises sustainability, which can be a challenging task [4].

It is also critical to acknowledge that startups’ sustainability strategies are greatly influenced by contextual and cultural factors. For instance, in Iran, startups’ perceptions and implementations of sustainability are influenced by the legal–political, cultural–social, and economic–infrastructural contexts [62]. This finding highlights the need for regional approaches to sustainability that consider specific consumer and market dynamics. A customised strategy is required to satisfy a range of local expectations, as organisational culture and consumer behaviour can also have a significant influence on the effectiveness of sustainability initiatives [60].

Supply Chain Complexities

According to [47], startups often struggle to create reliable supply chains that support their sustainability objectives. This problem is especially pronounced for those that depend on recycled materials, where input quality and availability can vary greatly [47]. In addition, the absence of established supply chains for sustainable materials makes sourcing more difficult and frequently results in operational inefficiencies [51]. In this situation, sourcing sustainable materials and making sure startups follow ethical standards is a challenging and resource-intensive task [54].

The increasing demand for supply chain traceability and transparency, which are crucial for building customers’ trust, exacerbates this complexity [54]. External variables like natural disasters and climate-related events can also interfere with supply chain operations, impacting vital components such as transportation, storage, and distribution [42]. Supply chain management is further strained by these interruptions as well as pricing volatility brought on by resource shortages.

In addition, fresh food companies are under immense pressure to address these environmental issues owing to growing consumer demand for sustainable and environmentally friendly products [42]. Startups must make investments in packaging innovations, improve supply chain transparency, and make environmental commitments to satisfy these growing demands [42]. When taken as a whole, these elements highlight the complex issues that startups encounter when managing sustainable supply chains.

Limited Access to Sustainability Data

Startups face numerous challenges, including supply chain complexity and restricted access to sustainability data. Although the Analytical Hierarchy Process (AHP) methodology and expert assessments can be useful, they also introduce the possibility of inconsistencies because expert evaluations are subjective [52]. If not adequately controlled, this subjectivity could jeopardise the validity of sustainability measures.

In addition, startups may find it more difficult to convince stakeholders of their compliance and performance if they are unable to obtain reliable data on sustainability performance [52]. The inherent challenges of monitoring and controlling sustainability outcomes exacerbate this problem. To create thorough sustainability measures and reporting frameworks, many startups lack the requisite knowledge or resources [53]. Thus, this lack of understanding may make it difficult to convince important stakeholders, such as investors and clients, of the benefits of their sustainability initiatives [53]. All of these observations show that startups’ capacity to successfully advance their sustainability initiatives is severely hampered by a lack of access to sustainability data.

Limited Knowledge

A considerable knowledge gap exists regarding optimal sustainability practices for startup owners [48]. The absence of this knowledge not only hinders the effective use of sustainable practices but also limits the scope of innovation [48]. In this regard, it underscores the pressing necessity for training and education. In fact, most startups lack the necessary knowledge to implement sustainable practices effectively [24]. Moreover, one of the biggest barriers identified by [52] is consumers’ lack of awareness and education about the benefits of green products. The respondents claimed that persuading customers is one of the most important factors for implementing sustainable strategies [50]. The lack of consumer awareness limits the demand for environmentally friendly products, which has an impact on these startups’ profitability and scalability [52].

According to [37], another common problem is startups’ lack of market knowledge about sustainable practices. A lot of business owners lack the skills and knowledge needed to successfully incorporate sustainability into their business models. This lack of understanding may result in the creation of poor sustainability strategies that do not appeal to target consumers or meet market needs [37].

Another key challenge is the unpredictability of consumers’ expectations towards sustainability. Startups find it difficult to define their sustainability commitment and communicate these effectively to consumers [14]. Lack of alignment between consumer attitudes and actual sustainable practices can generate distrust and erode customer trust [14]. Moreover, the regulatory landscape also presents other barriers. It is difficult for startups to adapt to evolving regulations on sustainability without adequate resources or technical expertise [61].

Considering this gap, entrepreneurs underlined the need for educational initiatives that offer perspectives on sustainable entrepreneurship and successful strategies [18]. This suggests that even though there is a lot of interest in sustainability, startups need mentorship and practical advice to successfully adopt and apply sustainable practices. In addition, startups eager to adopt environmentally conscious practices face additional challenges owing to a lack of qualified staff to carry out sustainability initiatives and insufficient market research on consumer sustainability preferences [44].

Integration of Sustainability and Business Strategy

As highlighted in the above discussion, the cumulative fragmentation of studies within this domain highlights the imperative need for comprehensive strategies that integrate sustainability into the entrepreneurial process right from its inception [40]. The demands of integrating social value creation into business models can overwhelm startups if they lack a robust framework to direct their sustainability initiatives [40].

Table 2. Summary of challenges faced by startups in incorporating economic, environmental, and social values.

Category	Challenge	Description	References
Challenge	Financial barriers	Cash flow problems that many startups face exacerbate the financial obstacle, making it more challenging to set aside the required funds for sustainability projects.	[4,24,35,38,44,58].
	Regulatory hurdles	The dynamic nature of sustainability policies necessitates constant realignment, which strains the operational capabilities of startups.	[38,42,46,47,48].
	Market competition	Startups compete not only with well-established and long-standing companies with greater resources, but also with other startups.	[24,25,32,52,54].
	Technological limitation	Startups face poor access to advanced technologies, huge investment in technology, high implementation costs, and unfamiliarity with circular economy concepts.	[48,49,54,58].
Challenge	Organisational culture	The complex nature of social entrepreneurship requires that startups navigate complex stakeholder relationships.	[40,47,51,56,60,62].
	Supply chain complexities	Sourcing sustainable materials and making sure startups follow ethical standards is a challenging and resource-intensive task.	[42,47,54].
	Limited access to sustainability data	Startups may find it more difficult to convince stakeholders of their compliance and performance due to inability to obtain reliable data on sustainability performance.	[52,53].
	Limited knowledge	Most startups lack the necessary knowledge to implement sustainable practices effectively.	[14,24,37,48,50,61].
	Integration of economic, environmental, and social values into the business strategy	The demands of integrating social value creation into business models can overwhelm startups.	[40]

Source: Own compilation.

below summarises the challenges faced by startups in implementing sustainable practices.

4.7.6. The Relationship Between Sustainability Adoption and Startup Performance

The study by [4] shows that organisational performance, which is directly related to sustainability practices, is greatly improved by digital transformational leadership. Accordingly, startups that implement sustainable practices not only satisfy customer demands for ethical business practices but also establish a competitive edge in the marketplace [4]. These startups can increase their traction and overall performance by incorporating sustainability into their business models, which will attract investors and clients who value ethical considerations [4]. The ability of sustainable startups to strike a balance between economic viability and ecological considerations is directly related to their performance [50]. According to a study by [50], green startups successfully satisfy consumer demands for environmentally friendly goods while preserving premium quality and affordable prices [50]. Critical elements such as product uniqueness, operational effectiveness, and customer awareness are necessary for these ventures to succeed [50].

To promote corporate social responsibility, financial performance continues to be a critical factor that motivates businesses to take on social responsibility [56]. Businesses that perform well financially are seen to attract more investors and preserve their competitive edge over the long run by fostering a favourable social image [56]. Furthermore, businesses that invest in sustainability frequently see improvements in long-term operational performance and customer loyalty, which boosts their ability to compete in the market through information exchange [63]. Therefore, in several ways, sustainable operations can greatly improve startups’ performance.

The information gathered from Greek startups shows that companies with strong sustainability policies typically receive higher sustainability ratings from knowledgeable analysts [53]. According to this correlation, sustainable startups increase their overall viability and profitability in addition to their chances of obtaining investor funding [53]. Prioritising sustainability also improves resource management, lowers operating expenses, and boosts productivity, all of which enhance financial performance [53].

The performance metrics of sustainable startups show that they typically perform better than their conventional counterparts, mostly because they can tap into niche markets and use sustainable branding [4,24,37]. In addition, the significance of a clearly defined sustainability strategy is highlighted by the relationship between good strategic management and the quality of internal communication procedures. According to [37], startups that successfully adopt sustainability initiatives frequently experience improved financial performance over time, lower costs, and increased operational efficiency. Sustainable practices also frequently result in better resource management, decreased waste, and increased operational efficiencies, all of which are critical for long-term growth and financial sustainability [25]. This viewpoint supports the idea that startups that prioritise sustainability improve their performance and market resilience in addition to having a positive impact on the environment and society [44].

Furthermore, sustainable startups’ financial results are consistently better than those of their less sustainable counterparts. The study by [48] emphasises that sustainable startups outperform their counterparts in non-financial metrics such as customer satisfaction and product innovation, in addition to financial metrics that include revenue growth and profitability. Startups can increase overall efficiency, optimise operations, and lower waste and resource-use costs by incorporating sustainability into their business models [48]. In addition to generating immediate financial success, this all-encompassing approach to performance guarantees long-term viability and resilience in a competitive industry [48].

The analysis of the literature on the performance of sustainable startups reveals a complex relationship between sustainability efforts and financial results. Ref. [14] claims that the quality and development of business models of startups, which now need to consider sustainability factors, have a big influence on their performance. This claim is supported by the research by [61], who contend that resilient business models that include sustainability components are better able to endure market uncertainties and economic fluctuations than those that do not. Thus, the data indicate that although sustainable startups may face monetisation and scaling issues at first, these issues frequently result in improved reputations and more market opportunities in the future [14].

Green startups reinforce the significance of responsible business practices by being profitable and positively impacting environmental sustainability [35]. Nonetheless, this encouraging trend is accompanied by a noteworthy disparity. Financial capability also includes financial behaviour and the overall environment, thus enabling easier access to finances for entrepreneurs while also improving entrepreneurial decision-making processes [64]. This shift suggests a changing environment that might support more women engaging in sustainable entrepreneurship, suggesting room for expansion in the future [38].

Environmentally conscious startups are in a strong position to benefit from new market trends that support eco-friendly operations. These startups can generate new revenue streams and take advantage of growth opportunities in industries like green technology, renewable energy, and sustainable agriculture by matching their goods and services with the rising consumer demand for sustainability [53]. Furthermore, because these startups are proactive, they can evaluate a variety of uses for agricultural residues, including bioenergy and biodegradable packaging, which increases their market position and sustainability impact [49].

4.7.7. Theory Alignment

Alignment with Economic Integration

With new funding, many startups focus on financial sustainability. Innovation happens when TBL elements are included. Businesses can gain a competitive advantage and possibly boost their financial returns by standing out in the market with new sustainable practices. This mirrors the TBL’s “Profit” pillar, which highlights sustainable economic viability along with monetary returns [28]. Startups that adopt inclusive and ethical financial strategies strengthen this connection.

Alignment with Environmental Integration

Only a small percentage of startups actively address environmental issues, such as waste reduction and energy efficiency. This suggests a limited alignment with the “Planet” component, which assesses whether startups innovate responsibly and minimise their environmental impact [28]. The environmental pillar of TBL is supported by startups that include sustainability in their supply chains, services, or product designs.

Alignment with Social Integration

Results show different practices. Some startups promote inclusive work, ethical labour practices, and community engagement. Others design products or services that directly address social problems. However, social impact is not widely measured in startups. This reflects a partial alignment with the “People” pillar. Startups that prioritise the welfare, fairness, and participation of employees and stakeholders support social sustainability. TBL encourages not only internal responsibility, such as fair pay, but also external impacts, such as working with underserved groups [28].

In summary, these findings match the TBL framework. Startups that focus on environmental and social goals along with economic growth are more likely to operate successfully over the long term. This supports the idea that creating value in sustainability needs to be comprehensive [28]. While including TBL principles can lead to sustainability, scaling remains a challenge. Startups often have difficulty scaling while keeping their social and environmental commitments, showing the need for flexible business models.

5. Implications of Study Findings for Policy and Practice

The findings from this study call for policymakers to establish enabling environments that promote economic, environmental, and social values among startup firms. Governments can play a fundamental role by offering financial incentives, grants, or soft loans that are exclusively set aside for startups that incorporate sustainable principles into startup business models. Moreover, improving access to information and resources pertaining to sustainable technologies and practices can enable entrepreneurs to make sound decisions. This study demonstrates that placing these startups in alignment with global sustainability objectives, specifically the 2030 Sustainable Development Goals (SDGs), has the potential to address local environmental challenges while simultaneously making them more marketable. To this end, policies supporting collaborative ecosystems, where startups can interact with incumbent companies and stakeholders on sustainable initiatives, can continue to foster a culture of sustainability in the entrepreneurship ecosystem. For long-term success, startups should provide equal consideration for economic, environmental, and social objectives of sustainability.

Development of a Conceptual Model

Figure 8 presents a conceptual framework from the study findings to extend the existing theories on the sustainability of startups. It synthesises the results of this study and connects them to the research questions presented in the introduction section.

A conceptual model (Figure 7) for comprehending the relationship between sustainability practices and startup performance outcomes is suggested from the study findings. The three dimensions of sustainability practices—economic, environmental, and social—are identified as the independent variables at the centre of the model. Strategies such as ethical sourcing, inclusive hiring, circular economy models, and green operations are used to operationalise these dimensions. These methods seek to encourage ethical and creative business practices by incorporating sustainability into startups’ fundamental operations.

A number of adoption influencers moderate the relationship between sustainability practice and outcomes. These influences can either support or restrict the adoption of sustainable practices. Factors such as funding, leadership commitment, access to knowledge of sustainability, and favourable policies are among those on the supportive side that play critical roles in driving the adoption of sustainability initiatives. On the other hand, challenges such as resource shortages, lack of experience, and short-term market pressures can slow down progress, indicating the complex landscape startups have to navigate in achieving sustainability.

A new contribution of this model is introducing sustainability orientation as a moderator construct, which assesses to what degree sustainability is incorporated within the core mission and strategy of a startup. It can be categorised into three types: core-oriented, when sustainability is placed at the forefront of the business model (for example, impact startups); peripheral-oriented, when sustainability is being adopted more for compliance or marketing reasons; and non-oriented, when sustainability has no bearing on the business model. This categorisation affects the depth and consistency of sustainability practices, which have implications for the extent to which startups can adopt and benefit from such practices.

The model also introduces the level of integration as a mediator variable, which measures the degree to which sustainability practices are embedded within the various functions of a startup, such as supply chain, human resources, and marketing. A high level of integration implies that sustainability is an inherent component of multiple business units, thereby leading to more consistent and impactful practices. Low integration, in contrast, suggests that sustainability efforts are isolated or ad hoc in nature, compromising their impact and long-term objectives.

Finally, the model presents startup performance outcomes, which include various success indicators, as the dependent variable. These are financial, such as return on investment (ROI) and growth in revenue; strategic, such as market positioning and innovation; social, such as loyalty of customers and stakeholder trust; and long-term sustainability, such as survival rates and successful scaling. This provides opportunities for future studies to analyse the proposed conceptual model.

6. Conclusions

The discussion of the literature reflects that there is an increase in the integration of economic, environmental, and social values among startup operations. However, the extent of integration varies greatly, as most startups prioritise the value of economic sustainability over environmental and social sustainability. The integration of sustainable practices into startup operations leads to the creation of a good reputation, attracting customers, and reducing costs in the long run. Overall, this results in the growth of startup businesses through access to funding, innovation, and earning a competitive advantage in the market. From the literature review, it can be concluded that the most emphasised sustainability dimension among startups is the economic aspect. However, there is significant attention to the integration of environmental as well as social values in startup operations. This study further concludes that startups face a significant number of challenges in integrating economic, environmental, and social values in their operations. Among them are limited financial resources, regulatory uncertainty, market competition, supply chain complexities, and limited knowledge. The evidence from the literature reviewed reflects that there is a positive association between the adoption of sustainable practices and startup performance in the long term. Studies indicate that integrating economic, environmental, and social objectives can assist startups to experience competitive advantage, increased innovation, attract eco-conscious customers and investors, and finally contribute to improved performance. Regarding the alignment with the TBL theory, most startups prioritise financial sustainability, aligning with the economic dimension. A small proportion of startups recognise the value of environmental sustainability in their business model, demonstrating a limited alignment with the TBL theory. Further, the literature presents varied recognition of social sustainability in startup operations. There seems to be a gap between TBL expectations and evidence from the literature. The existing literature only partially supports the TBL underpinnings. This study points to a sizable lack of research in African countries about sustainability practices in startups from the literature accessed through SCOPUS and DOAJ databases. This should be interpreted as a call to action for governments, investors, and scholars to fund sustainability frameworks and startup ecosystems that are adapted to African contexts. Fostering growth requires an understanding of the unique opportunities and challenges faced by startups in this setting. The information highlights the necessity of more funding for African startup ecosystems.

6.1. Limitations of This Study

This study is not without weaknesses. First, the use of a systematic literature review ensures that the findings will be based on the quantity and quality of the literature available at hand. Possibly, some studies that are pertinent were omitted, and they could influence the range of conclusions drawn. Another limitation is that only articles listed in the SCOPUS and DOAJ databases were considered in this study. Some studies listed in other databases on sustainability practices in startups could have been left out, and this limits the generalisability of findings. This study is also limited to document analysis, and other tools of data collection can yield different results. In addition, the variation of industries represented between startups may mean that the impact and issues of sustainability are not consistent across industries, introducing an aspect of bias in consolidating the findings across the board. The qualitative nature of how sustainability is being implemented in startups, such as the personal motivation of entrepreneurs and the subtleties involved with different business models, may not be fully captured by quantitative studies that dominate the existing literature.

6.2. Future Directions of This Study

More research should be carried out focusing on the incorporation of economic, environmental, and social values into the business models of startups. The findings from the literature review proved that startups have great potential to create jobs and grow economies, especially in African countries where there is a lack of startup research. Therefore, future research should be carried out focusing on sector-specific empirical studies to identify the unique opportunities brought by investing in startup initiatives, as well as primary data collection. Publications on sustainability in startups from other databases can be considered in future research. Furthermore, active research on sustainability practices in startups should be carried out in African countries since the findings revealed a lack of research in Africa. In Africa, a growth in sustainable startups has the potential to grow the economy and create jobs. The long-term effects of sustainability practices on startups’ success and market relevance may be better understood with the aid of longitudinal studies. A comprehensive perspective on sustainable entrepreneurship could also be provided by interdisciplinary research that integrates knowledge from business management, accounting, economics, and environmental science. Another promising avenue of research is examining the precise effects of digital transformation on sustainable practices in startups, as technology continues to influence business models in the context of sustainability.