Definition

The term transformative enterprise emerged in German-language publications on SMEs and strong sustainability (e.g., Pfriem et al. 2015; Pfriem 2021). We reviewed this literature and elaborated a definition of transformative enterprises that we use in this research project:

"Transformative enterprises are pioneering SMEs who strive for fundamental changes towards sustainability. They have a social and/or ecological (1) driving mission and are oriented along the values of (2) stability and autonomy. Inside the enterprise, they implement these values by minimizing their (3) ecological footprint, assuming (4) social obligations, introducing (5) participatory governance structures, and offering (6) alternative products and services. The enterprise's core values define how it interacts with stakeholders: transformative enterprises put (7) people before profit, emphasize (8) regional embeddedness and act as (9) change agents. By spreading their vision and taking initiative for industry changes, they trigger or facilitate transformation processes and thereby contribute to sustainable, future-proof economic practices“ (Hug et al. 2022, p. 11).

References:

Hug, M., Mayer, H., & Seidl, I. (2022). Transformative enterprises: Characteristics and a definition. Geography Compass.

Pfriem, R., Antoni-Komar, I., & Lautermann, C. (2015). Transformative Unternehmen. Ökologisches Wirtschaften - Fachzeitschrift, 30(3), 18.

Pfriem, R. (2021). Transformative Unternehmen und die Veränderung der Unternehmenslandschaft. In Die Neuerfindung des Unternehmertums. Solidarische Ökonomie, radikale Demokratie und kulturelle Evolution (pp. 265–300). Metropolis-Verlag.