Insights
Innovation in Start Up Business Models for Sustainable Development
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This empirical study examines a start-up offering energy-saving solutions to local-government units, using business-model tools (including the Business Model Canvas and Triple-Layer Business Model Canvas) to analyse how value is created, delivered and captured in a sustainability-oriented entrepreneurial venture.
The study focuses on an entrepreneurial company delivering energy-saving services (smart technologies, retrofits) to local government and examines the strategic business-model design used to align profit, social and environmental value.
The authors apply the traditional Business Model Canvas (BMC) and enrich it with the Triple-Layer Business Model Canvas (which adds social and environmental layers to value proposition, value creation/delivery and value capture). Through interviews and case-analysis, the paper identifies key components: the value proposition must integrate technical innovation (smart energy tools), cost-savings for clients (lower energy bills, lower emissions), and sustainability credentials (carbon-reduction, local-community benefits).
Value-creation requires building partnerships (local authorities, tech providers, financing bodies), deploying the technology at scale, and leveraging data/feedback loops. Delivery channels include service contracts, performance guarantees, and subscription/maintenance models rather than one-time sales. On the capture side, revenue sources combine service fees, savings-sharing arrangements, and potential incentive or grant funding for local government.
The authors show that integrating the environmental layer encourages reuse, circular business models (e.g., sensor leasing, refurbishment of equipment), and wider stakeholder engagement (clients, regulators, financiers). The social layer emphasises community impact (job creation, local capacity building, transparency).
The authors conclude that for start-ups in sustainability-oriented markets—such as packaging solutions, circular-materials companies, or climate-tech ventures—using enriched business-model tools helps clarify how sustainability metrics tie into revenue and cost structures, enhances stakeholder alignment, and fosters sustainable growth.