TMA 01 Sustainable Enterprise and Innovation Essay Answer

Part 1: Entrepreneurial Innovation and Societal Challenges

Introduction

In today’s rapidly changing world of entrepreneurship and innovation, it’s becoming clear that identifying and addressing the most pressing problems in the society plays an essential role in promoting the collective prosperity. This piece delves into a remarkable entrepreneurial innovation aimed at confronting one such societal challenge head-on. The innovation at the forefront of the concerned discussion is a renewable energy microgrid solution, specifically designed to meet the urgent demand for sustainable energy sources and improved energy accessibility in marginalized and underserved communities (Albarakati et al. 2022).

Entrepreneurial Innovation

The chosen entrepreneurial innovation revolves around renewable energy microgrids, and self-contained energy systems that can generate, store, and distribute power locally. These microgrids incorporate renewable sources like solar, wind, and biomass, along with advanced energy storage. Today’s world is drawn to this innovation for its multifaceted benefits (Albarakati et al. 2022).

Foremost, renewable energy microgrids offer a promising solution to the global energy crisis (Saeed et al. 2021). With fossil fuels causing environmental harm and climate change, transitioning to clean, sustainable energy is becoming important day by day. Microgrids use renewable energy sources to help reduce reliance on fossil fuels, reduce carbon emissions, and fight against climate change. These microgrids bridge the energy access gap, a pervasive issue in underserved communities, especially in developing areas. Limited electricity access stifles economic growth, education, and healthcare. Microgrids provide a stable energy supply, enhancing these communities' prospects and quality of life.

Moreover, the innovation's entrepreneurial potential lies in its scalability and adaptability. Customized to diverse community needs, it's a versatile solution for urban, rural, and remote areas. Innovative business models and revenue generation make it appealing to entrepreneurs and investors.

The choice aligns with the urgent need for sustainable energy, addressing environmental concerns and energy poverty. It supports global shifts toward clean energy and aligns with UN Sustainable Development Goals, especially Goals 7 (Affordable and Clean Energy) and 13 (Climate Action) (NREL.Gov 2023). The potential for economic development and social progress, alongside profitability, underscores the practicality and significance of this choice.

Societal Challenges

The societal challenge that has been chosen is to address through the provision of renewable energy microgrids is the pressing need for sustainable and reliable energy access in underserved communities, particularly in developing regions. The challenge is selected for several compelling reasons:

Energy Access Disparities: Access to energy is a fundamental right and a cornerstone of development. However, millions of people around the world, primarily in rural and remote areas, still lack reliable access to electricity (NREL.Gov 2023). These disparities in energy access exacerbate poverty and limit opportunities for education, healthcare, and economic development. Choosing this challenge is a response to the stark inequalities in energy access.

Environmental Sustainability: In many underserved regions, the primary energy source is fossil fuels, which contribute to climate change and environmental degradation. By choosing renewable microgrids for energy access, the society is addressing not only the energy access challenge but also the energy generation challenge of sustainable energy (Albarakati et al. 2022). This choice aligns with the global imperative to reduce carbon emissions and shift to clean energy sources.

Economic Empowerment: Renewable energy microgrids have the potential to empower local communities economically (Albarakati et al. 2022). By generating energy from local, renewable sources and creating opportunities for entrepreneurship in the maintenance and operation of microgrids, the world can foster economic growth in these areas. It's a means to break the cycle of poverty and improve livelihoods.

Versatility and Adaptability: The choice of renewable energy microgrids is motivated by their adaptability (Albarakati et al. 2022). They can be customized to suit the specific needs and resources of different communities, whether urban or rural. This versatility enables the current society to address the challenge of energy access in a variety of contexts.

Alignment with Sustainable Development Goals (SDGs): The United Nations' Sustainable Development Goals recognize the importance of sustainable and affordable energy access (SDG 7 - Affordable and Clean Energy). By choosing this challenge, the same can be aligned with a specific SDG while also contributing to the achievement of other goals, such as SDG 1 (No Poverty), SDG 3 (Good Health and Well-being), and SDG 4 (Quality Education), as reliable energy access positively impacts these areas.

Global Significance: Energy access is a global challenge, transcending borders and impacting countries at different levels of development (Doh, Budhwar, and Wood 2021). By addressing this challenge, the world can contribute to the global effort to ensure that all people have access to clean, affordable, and reliable energy, irrespective of their location.

Innovation and Entrepreneurship: Renewable energy microgrids represent an innovative solution that can serve as a basis for entrepreneurial ventures. This challenge provides opportunities for business models centred on clean energy, which can attract investors and drive innovation in the energy sector.

Part 2: Using Entrepreneurial Innovations to Address Societal Challenges

Theoretical or Conceptual Framework:

To evaluate the chosen entrepreneurial innovation of renewable energy microgrids and their relevance in addressing societal challenges, the use of Triple Bottom Line (TBL) framework will be done. This framework assesses businesses and innovations based on three interconnected dimensions: economic, social, and environmental. The TBL framework is especially relevant as it allows to gauge how the innovation not only benefits the financial aspects but also contributes to social well-being and environmental sustainability (Loviscek 2020).

Analysis and Discussion:

The Triple Bottom Line Framework (TBL) helps in the critical management of profit, people and the planet with the help of three interconnected dimensions as stated above. This, in turn, helps to ensure that the need to manage entrepreneurial-level innovations is conceptualized with the environmental responsibilities to be fulfilled. Thus, the negative social impacts are identified and the corrective actions can be taken into consideration. Contextual to this aspect, with the application of the TBL framework entrepreneurial innovation can be carried in connection with addressing the diversified societal challenges that are being faced as a part of involving into use of higher level of technology and modern innovation.

In this connection, applying the Triple Bottom Line framework to the real-time entrepreneurial innovation of renewable energy microgrids, it can be profoundly observed that it’s potential to address the societal challenge of energy poverty and environmental sustainability, and its alignment with the Sustainable Development Goals (SDGs) (Loviscek 2020). This innovation not only provides a sustainable solution to the energy needs but also contributes to social well-being and environmental preservation.

Economic Dimension: Renewable energy microgrids offer economic advantages by lowering operational costs compared to conventional energy sources and opening up opportunities for local entrepreneurship (Albarakati et al. 2022). The establishment and upkeep of these microgrids stimulate job creation and bolster local businesses, contributing to economic growth in underserved communities. This is in line with SDG 8 (Decent Work and Economic Growth).

Social Dimension: Microgrids have a significant social impact by providing dependable and affordable electricity. This leads to improved living conditions and promotes social development. Communities with access to electricity can enhance healthcare facilities, provide better education, and boost overall well-being. This directly aligns with SDG 1 (No Poverty), SDG 3 (Good Health and Well-being), and SDG 4 (Quality Education).

Environmental Dimension: The shift to renewable energy sources in microgrids is a crucial step towards environmental sustainability. By reducing carbon emissions and reliance on fossil fuels, these microgrids contribute to mitigating climate change (SDG 13) and protecting ecosystems (SDG 15 - Life on Land and SDG 14 - Life below Water). Additionally, this dimension supports SDG 7 (Affordable and Clean Energy) by promoting clean energy generation.

Connecting with Sustainable Development Goals: The selected entrepreneurial innovation of microgrids powered by renewable energy is inherently ties to numerous Sustainable Development Goals. It directly tackles SDGs 1, 3, 4, 7, 8, 13, 14, and 15 by enhancing living standards, fostering economic growth, guaranteeing access to clean energy, and combating climate change. Moreover, it indirectly aids various other SDGs by diminishing social disparities and promoting sustainability. It stands as a potent illustration of a comprehensive solution with a positive influence on multiple SDGs.

By applying the (Triple Bottom Line) TBL framework, it can be seen that the innovation does not just serve the purpose of generating clean energy but extends its reach to benefit society and the environment holistically (Trivedi et al. 2022). It exemplifies the interconnectedness of social, economic, and environmental factors, aligning perfectly with the broader agenda of sustainable development as encapsulated in the Sustainable Development Goals. As opined by Ferrazzano et al. (2023), sustainability is the key concept to be managed and the synergy of innovation acts as a backbone to the same. Sustainability and innovation have been depicted as the two key concepts supporting each other to help diversified businesses fulfil their CSR appropriately. Therefore, the entrepreneurial innovation level of microgrids will be able to meet the present need of increasing the use of renewable energy and organic resources without the need of comprising the future ability of the company’s coming generations to meet their needs.

Conclusion

Examining the entrepreneurial innovation of renewable energy microgrids through the Triple Bottom Line framework reveals a powerful answer to the intricate issues of energy poverty and environmental sustainability. It fosters economic growth, enhances living standards, and promotes environmental preservation, contributing to a future that is more sustainable and fair. As the world tackles these challenges, they not only uplift the lives of underserved communities but also make significant strides towards accomplishing the United Nations Sustainable Development Goals. This innovation stands as a symbol of optimism for a future that is more prosperous, equitable, and respectful of the environment.

References

Albarakati, A. J., Boujoudar, Y., Azeroual, M., Eliysaouy, L., Kotb, H., Aljarbouh, A., ... & Pupkov, A., 2022. Microgrid energy management and monitoring systems: A comprehensive review. Frontiers in Energy Research, 10, 1097858. https://www.frontiersin.org/articles/10.3389/fenrg.2022.1097858/full

Doh, J., Budhwar, P. and Wood, G., 2021. Long-term energy transitions and international business: Concepts, theory, methods, and a research agenda. Journal of International Business Studies, 52, pp.951-970. https://link.springer.com/article/10.1057/s41267-021-00405-6

Ferrazzano, L., Corbisiero, D., Tolomelli, A. and Cabri, W., 2023. From green innovations in oligopeptide to oligonucleotide sustainable synthesis: differences and synergies in TIDES chemistry. Green Chemistry, 25(4), pp.1217-1236.

Loviscek, V., 2020. Triple bottom line toward a holistic framework for sustainability: A systematic review. Revista de Administração Contemporânea, 25, p.e200017. https://www.scielo.br/j/rac/a/dQWB6Px4YpFjX9yRvvRJZsh/

NREL.Gov. 2023. Micro-Grids for Anyone. Available at: https://www.nrel.gov/news/features/2022/microgrids-for-anyone.html [Accessed on 4th Nov 2023]

Saeed, M.H., Fangzong, W., Kalwar, B.A. and Iqbal, S., 2021. A review on microgrids’ challenges & perspectives. IEEE Access, 9, pp.166502-166517. https://ieeexplore.ieee.org/document/9648165

Trivedi, R., Patra, S., Sidqi, Y., Bowler, B., Zimmermann, F., Deconinck, G., Papaemmanouil, A. and Khadem, S., 2022. Community-based microgrids: Literature review and pathways to decarbonise the local electricity network. Energies, 15(3), p.918. https://www.mdpi.com/1996-1073/15/3/918

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