Critical success factors and performance measures for start-up social and environmental enterprises

The report identifies eight critical success factors and fourteen performance indicators for start-up social and environmental enterprises in developing countries. These tools are designed to help entrepreneurs and investors assess the likelihood of success and monitor progress across a 'triple bottom line' of economic, social, and environmental goals. The findings are based on a literature review and empirical research with ten SEED-supported enterprises.

• The report identifies eight critical success factors that increase the likelihood of a start-up enterprise attracting investment and succeeding: leadership, partnerships, proof and clarity of innovative concept, business planning and marketing, triple bottom line planning, short and long term benefits management, community engagement, and risk management.
• Strong leadership is essential, specifically the commitment and continuity of one or two individuals. The report notes that having a paid coordinator often leads to immediate growth, whereas a lack of salary can limit the time and effort invested in the enterprise.
• Many social and environmental enterprises lack essential marketing skills, such as locating buyers or attracting clients, because partners often come from NGO or government sectors rather than business backgrounds.
• A 'proof of concept'—often established through earlier overseas development assistance (ODA) or international project funding—is a critical factor in demonstrating the commercial viability of a product or service.
• Enterprises must manage both short-term and long-term benefits to keep stakeholders engaged, particularly when natural resources require several years to regenerate before providing economic returns.
• The report proposes fourteen performance indicators divided into four categories: business performance (e.g., updated business plans, marketing networks), social performance (e.g., income provided, skills training), environmental performance (e.g., impact evaluation, technological innovation), and partnership arrangements (e.g., clear roles, regular communication).
• Effective partnership management is signaled by the ability to monitor and manage changes in partnership composition, such as replacing weaker partners with those who bring stronger skills or expertise.
• Triple bottom line planning requires the deliberate alignment of economic, social, and environmental goals. The report finds that while most enterprises identify these benefits at the start, few plan for them with the same detail as a business plan.

APA

Boyer, D., Creech, H., & Paas, L. (2008). Critical success factors and performance measures for start-up social and environmental enterprises. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/seed_factors_startup.pdf

Chicago

Boyer, David, Heather Creech, and Leslie Paas. Critical success factors and performance measures for start-up social and environmental enterprises. International Institute for Sustainable Development, 2008. https://www.iisd.org/system/files/publications/seed_factors_startup.pdf.

Wikipedia

{{cite report |last1=Boyer |first1=David |last2=Creech |first2=Heather |last3=Paas |first3=Leslie |title=Critical success factors and performance measures for start-up social and environmental enterprises |publisher=International Institute for Sustainable Development |date=June 2008 |url=https://www.iisd.org/system/files/publications/seed_factors_startup.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{boyer2008critical, author = {Boyer, David and Creech, Heather and Paas, Leslie}, title = {{Critical success factors and performance measures for start-up social and environmental enterprises}}, institution = {International Institute for Sustainable Development}, year = {2008}, month = jun, url = {https://www.iisd.org/system/files/publications/seed_factors_startup.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }