The growing rate of university student entrepreneurs is approximately 5.1%, with an entrepreneurial intention rate of 43% and total early-stage entrepreneurial activity at 15.4%, as reported by Entrepreneurs Data.
This positive trend is largely driven by emerging technologies and changes in lifestyle among the new generation.
Additionally, according to Tech.eu, only 2.6% of startups are developing solutions that align with the United Nations’ Sustainable Development Goals (UN SDGs). This indicates a shortfall in entrepreneurs pushing innovation towards the SDG agenda within a circular economy ecosystem.
SDGs vs ESG
SDGs cover 17 primary focus areas that can be adopted by any organisation, representing a global consensus for the benefit of people and the planet.
Environment, social and governance (ESG) refers to objective-based engagement or activities within a framework set by an organisation.
In essence, SDGs are areas for adoption, while ESG focuses on outward-based reporting. ESG can be seen as an overarching policy practice in which SDGs serve as focused verticals. ESG has become more popular in the corporate sector.
From a tertiary perspective, SDGs have been applied to enhance a university’s sustainability performance across strategies, processes, programmes and practices, including curriculum, partnerships, research, governance and operations. Universities can use measurement and reporting mechanisms to transparently disclose their performance towards achieving these goals while complying with ESG policies, as prescribed by their senior leadership or governance board.
Entrepreneurship DNA
To achieve goals and foster in-house youth entrepreneurs, it is essential to teach entrepreneurship in relation to ESG practices. In Malaysia, the Higher Education Ministry prescribes an Entrepreneurship Integrated Education framework, forming the basis for the Entrepreneurship Integrated Curriculum (EIC).
The EIC integrates ESG/SDG principles into a university’s entrepreneurship ecosystem. The subjects taught provide the DNA to build entrepreneurs with an ESG/SDG mindset.
Entrepreneurs are not only startup founders but also individuals who can ideate or design new products for the organisations they work for. Curricula should encompass a journey-on-campus mentality, allowing for a sequential approach to knowledge adoption from the initial entry year to the final years of study, covering entrepreneurship fundamentals, effectuation to innovation processes, and venture-building methodologies.Design thinking
A perfect start to innovation is to initiate empathy into solving common life-based problems, thereby addressing the needs of Society 5.0. Design thinking, at this stage, aims to amplify solutions to combat climate change, beginning with climate leadership frameworks where universities can serve as living laboratories of ideas.
Academics and students can transition to practitioners through these frameworks. To catalyse action and solutions for sustainability, students and academic staff must develop deep disciplinary and interdisciplinary perspectives on ESG through content, assessment projects, and collaborations with local communities, government agencies, industry, and institutional partners to advance real-world solutions and reciprocal learning.
Innovation process
Integration is a key part of the innovation process. Since ESG and innovation are intrinsically linked, integrating ESG considerations based on ethical standards and requirements minimises negative social or environmental impacts. Building solutions as projects within a circular economy is ideal. Addressing environmental challenges like waste management, renewable energy and clean water, correlated to population growth and urbanisation, is essential.
Social issues like inequality, workforce welfare and support for underprivileged communities pose tougher obstacles. Food security is another area that can benefit from emerging technology.
Innovation can be guided by two principles: preservation and provision. The social impact of innovation is vital, encompassing cybersecurity, equality within human rights, and product creation safety as defined in ESG targets.
Venture building
Universities and venture capitalists should also engage in responsible investments, adhering to ESG practices and prioritising sustainability. Recent years have shown an increase in investor focus on investment stewardship concerning ESG topics, including proxy voting in equities and engaging with companies or debt issuers through individual or collaborative initiatives.
University entrepreneurs must align their innovations with the ESG or SDG vision, mission and goals of their institutions. Many universities have established funds, such as consolidated endowment funds, to earn returns over time while preserving asset value. Supporting responsible business practices is integral to producing strong investment outcomes.
For universities, it is mandatory to align campus implementations with ESG policies, material procurement, asset risk mitigation and building maintenance, ensuring targets and metrics are met.
Good innovative ideas leading to enterprising ventures can thrive in these multifaceted campus environments, providing pathways to meet research, ethics and social transformation requirements on campus.
Prof Dr Vinesh Thiruchelvam is the chief innovation & enterprise officer for the APIIT Education Group and Asia Pacific University of Technology & Innovation. He is also the International Strategy Board for the Institution of Mechanical Engineers (Engineering Council UK) chair; VRARA (USA) Malaysia Chapter president; and VRARA APAC Higher Education leader. Having worked in 17 countries worldwide, Prof Vinesh brings a holistic approach to producing innovators and entrepreneurs fit for a globalised outcome. The views expressed here are the writer’s own.
