Adoption of Sustainable Business Models

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Examensarbete för masterexamen

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Climate change is transforming the business environment and creates challenges for companies. These challenges, as well as political decisions related to sustainability, puts pressure on companies to change the way they are doing business. For companies to adapt to the changing business environment, new business models encompassing all three dimensions of sustainability, i.e., environment, society, and economy, must be applied. Such models are characterised as sustainable business models and several scholars have addressed how these could be designed. However, few are adapted to the context of small and local farmers. Thus, the aim of the thesis is to explore how a sustainable business model can be adapted to small and local farmers. Further, this thesis will identify factors that hinder and facilitate farmers’ ability to adopt a sustainable business model, as well as what social value is created when adopting the business model. A case study including eleven in-depth interviews with small scale farmers was conducted to collect data. The data was analysed by applying the theoretical framework. Additionally, the Triple Layered Business Model Canvas (TLBMC) was used to discuss how a sustainable business model can be adapted to small-scale farmers. The results provide four social values (Community engagement, Job opportunities, Environmental education, and Improved quality of life), five barriers (High initial costs, Lack of knowledge and skills, Low profitability, Lack of support from external actors, and Financial risk), and four drivers (Protecting the environment, External support, Collaboration networks, and Demand for sustainable products) which are considered prominent. Further, it was identified that several building blocks in the TLBMC are important for small-scale farmers to consider. In particular, the thesis suggests that it is important to consider the most efficient way to use time and generate revenues, to create circular systems on the farm, and to utilise the farm as a social platform. However, the main challenge for farmers is to be profitable while also being environmentally and socially sustainable.

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Sustainable Business Model, Circular Economy, Small-scale Farms, Barriers, Drivers, Social value, Triple Layered Business Model Canvas

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