Balancing Sustainability and Profitability: How Entrepreneurs Gain Legitimacy

What is it about?

This conceptual article examines how entrepreneurs achieve legitimacy when navigating the balance between sustainability and profitability in business. Drawing on the institutional logics literature and Bourdieu’s notion of habitus, the authors explore how both the characteristics of the broader field and those of individual entrepreneurs influence the legitimacy that newcomers can gain. They argue that legitimacy depends on how well entrepreneurs align with prevailing expectations about how sustainability and profitability should coexist in a given context. For practitioners, the article highlights the importance of understanding the expectations that shape what is viewed as legitimate entrepreneurial behavior. Entrepreneurs must find ways to present their ventures as both responsible and viable, recognizing that fields differ in how they weigh social and economic goals. By being aware of these expectations, entrepreneurs can position their initiatives more effectively and build credibility among stakeholders.

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Photo by Declan Sun on Unsplash

Photo by Declan Sun on Unsplash

Why is it important?

This paper contributes to entrepreneurship and sustainability research by linking legitimacy to the balance between social and economic orientations. It shows that legitimacy is not fixed but shaped by how entrepreneurs interpret and respond to the institutional context they operate within. The discussion offers a conceptual lens for understanding how both environmental factors and individual actions influence recognition in the field. The framework is timely in light of growing attention to sustainability as a core aspect of business practice. It provides a broad foundation for thinking about how entrepreneurs pursue legitimacy amid evolving norms about responsible enterprise, encouraging reflection on how sustainability and profitability can be balanced in practice.