Research Case

Sustainable Entrepreneurship South Asian Journal of

Business and Management Cases
in India: A Comparative 11(1) 10–26, 2022
© 2022 Birla Institute of Management Technology
Case Study of Social, Economic Reprints and permissions:
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and Environmental Outcomes DOI: 10.1177/22779779221082766
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Shirin M. Khokhawala1 and Radha Iyer2

Abstract
There is an increasing interest in how sustainable entrepreneurship can balance people development, profit
generation and planet protection to create better social, economic and environmental outcomes. Firms
need to develop sustainable business processes, stakeholder engagement and sustainable innovations
to achieve venture success. This comparative case study method uses primary research, literature
review and the evaluation of secondary sources to bring more depth to the cases. Primary data are
collected through detailed interaction with the Indian founders and the key stakeholders to study the
phenomenon of sustainable entrepreneurship. One company designs and produces premium handmade
leather footwear using traditional techniques, while the other firm designs and creates fabrics for global
fashion houses using artisanal methods. The sustainability practices are contributing to social upliftment
and positively impacting the environment as both the ventures were set up with a desire to support India’s
artisanal networks. The social, economic and environmental outcomes create the theoretical framework
of sustainable entrepreneurship. The sustainable innovation processes implemented by these companies
filter out the detrimental effects of innovation to create socially responsible and environmentally friendly
products. While sustainability-driven costs are higher for both companies, they are creating value-added
products to build long-term profitability and growth. Some sustainability challenges like reduction in carbon
footprint through greater efficiency in power consumption and transportation remain to be tackled. This
applied research on sustainable best practices adds to the area of entrepreneurship. The cases may guide
other entrepreneurs on how they could build and grow sustainable ventures. Policy implications for
promoting sustainable entrepreneurship, the governmental role in supporting local artisan networks and
the need for greater environmental awareness are discussed.

Keywords
Sustainable innovation, social networks, emerging economies, comparative case method

1
University of Mumbai, Mumbai, Maharashtra, India.
2
K.J. Somaiya Institute of Management, Mumbai, Maharashtra, India.

Corresponding author:
Shirin M. Khokhawala, K.J. Somaiya Institute of Management Studies and Research, Vidya Vihar (E), Mumbai, Maharashtra 400077, India.
E-mail: [email protected]
Khokhawala and Iyer 11

Introduction
Many micro-, small and medium enterprises (MSMEs) fail to prioritize sustainability (Rudawska,
2019), and environmental degradation rarely represents a top-of-the-chart concern for many company
executives (Haanaes et al., 2011). For instance, the global textile industry recycles only 1% of its total
production waste, representing a total loss of US$1 billion per year (Textile Exchange, 2018). Building
sustainable solutions to environmental problems could create entrepreneurial opportunities in all
industries (Schaltegger & Wagner, 2011). For early ‘embracers’, sustainability represents a strategic
thrust, requiring a top-down approach, creating a positive impact for their primary stakeholders
(Haanaes et al., 2011, p. 79). Sustainability-driven firms manage a network of mutually advantageous
relationships with stakeholders, and creating such collaborative partnerships is more beneficial in the
long term than merely working on the profit maximization principle (Viswanathan et al., 2007).
Sustainability-driven business processes tie a company’s day-to-day functioning with its social,
economic and environmental priorities and impact its stakeholder management (Stolze et al., 2012).
Firms aiming to create sustainable systems of production and consumption undertake stakeholder
management at multiple levels such as the individual, firm, industry and societal (Gonzalez-Porras et
al., 2021).
Adams et al. (2016) add that a sustainability-driven innovation approach entails improving ‘products,
processes or practices to serve the specific purpose of creating and realizing social and environmental
value in addition to economic returns’ (p. 180). Firms prioritize stakeholder relationships based on
changing collaboration dynamics, which affect their stakeholder engagement over time, and they strive
to meet the expectations of their key stakeholders (Kujala et al., 2019). The social aspect of sustainability
also includes building social networks (Dempsey et al., 2011), and entrepreneurs create a complex web
of relationships to support their sustainability ventures (Neumeyer & Santos, 2018).
There is a need to study what motivates entrepreneurs to create sustainable innovations, how they use
social ties to form meaningful networks and to identify the industry’s best practices, while simultaneously
undertaking stringent empirical analysis to drive the theoretical synthesis of sustainable entrepreneurship
(Sarango-Lalangui et al., 2018).
The purpose of this study is to examine how sustainable entrepreneurs improve their social, economic
and environmental outcomes. More specifically, we compare two cases of sustainable entrepreneurs in
India to understand how they are intertwining sustainability with profits. The next section discusses the
literature, followed by case methodology and the findings. The discussion on the role of government,
society at large and academia in supporting sustainable entrepreneurship is followed by the conclusion.

Sustainable Entrepreneurship
Sustainable entrepreneurship promotes a paradigm shift in the perception that the entrepreneur is a
contributor and protector of the environment, not the cause of its degeneration (Figge et al., 2002;
Neumeyer & Santos, 2018; Schaltegger & Wagner, 2011; Shepherd & Patzelt, 2011). Sustainable
entrepreneurs pay special attention to the rights of stakeholders such as employees, suppliers and
customers, while shareholders need to encourage companies to make sustainability-oriented decisions
(Crals & Vereeck, 2004). Sustainability-oriented innovative firms are people focused rather than
technology-driven, collaborate actively with diverse stakeholders and systematically focus on the triple
bottom line of social, economic and environmental dimensions (Adams et al., 2016). Sustainable
entrepreneurs construct value networks that are embedded with environmental innovations, thus creating
12 South Asian Journal of Business and Management Cases 11(1)

a larger impact than social entrepreneurship (Schaltegger & Wagner, 2011). They pursue economic and
non-economic goals to add ‘economic, social, environmental and cultural value’, thereby creating
superior outcomes for developed and developing countries (Shepherd & Patzelt, 2011, p. 140). Frugal
sustainable innovations, built through responsiveness, deliberation and greater stakeholder inclusion
cater to the socio-economic and environmental needs of developing economies (Lubberink et al., 2017).
Roztocki and Weistroffer (2011) point out that though the terms developing economies and emerging
economies are often used interchangeably, emerging economies are identified by rising standards of
living, availability of resources to support progress and vigorous growth rates that are attributed to
economic liberalization. Viswanathan et al. (2007) posit that firms, in emerging economies like India,
need to build sustainable profits by acting socially responsibly, which entails innovating business
processes, creating sustainable supply chains and placing societal concerns at the centre of their business
purpose. Crals and Vereeck (2004) find that many small and medium enterprises (SMEs) avoid
sustainability best practices citing cost and lack of resources. Entrepreneurial ecosystems and governments
should actively support sustainable entrepreneurs who create value beyond economic gains (Hoogendoorn
et al., 2019; Khokhawala & Iyer, 2021).

Case Study Method

Qualitative research involves sifting through textual and visual data to identify the phenomenon,
evaluate the themes and bring forth the common learnings through tables and illustrative quotes
(Creswell & Poth, 2016). Eisenhardt (1989) elaborates that the cross-case analysis method of
‘compare’ and ‘contrast’ makes the differences apparent by highlighting the common themes
between the cases. Case study research requires a strong data plan, which pertains to linear analysis,
which is carried out iteratively, and multiple case research study uses replication to compare and
contrast success outcomes between the cases (Yin, 2009). The use of tables and graphs helps the
researcher ‘to manage and present qualitative data without destroying the meaning of data through
intensive coding’ (Eisenhardt, 1989, p. 534). Building a case through primary data that presents the
correspondent theory by outlining the context leads to a better understanding of the phenomenon
(Mishra & Dey, 2020). While single cases are ideal for theory building, in multiple cases, it is more
important to highlight the relationships between the cases (Eisenhardt & Graebnaer, 2007). Through
a heuristic approach, wherein the word heuristic means ‘to discover’, qualitative researchers begin
without any preconceived notions but flow with their ideas, which they are willing to adapt based
on their observations and scientific investigation (Bartlett & Vavrus, 2017, p. 6). Purposeful
sampling helps to select examples best suited to understand and support comparisons that illuminate
differences in a qualitative multi-case study (Maxwell, 2008). The purposeful sampling of
entrepreneurs was based on the researchers’ experience, as one of the researchers has been leading
campus entrepreneurship programmes for more than a decade. The entrepreneurs were chosen for
their vision, growth potential and sustainability implementations.
Two entrepreneurial firms have been chosen for this comparative case research. The first case, Desi
Hangover, is a firm that crafts handmade leather footwear and is run by a team of young entrepreneurs
who have little or no industry experience. The second case is the H.G. Group, which is an ethnic fabric
manufacturing firm that is run by an experienced entrepreneur. Moreover, both are involved with the
socially and economically challenged rural artisans as a key stakeholder group. Creating strong social
networks can help fight rural degradation, poverty and inequality by strengthening incomes and pooling
resources effectively (Farr, 2004). The first case study was developed through a heuristic process in a
Khokhawala and Iyer 13

Table 1. Case Research Plan

Nature of Activity Desi Hangover Description H.G. Group Description

Number of interviews 4 Offline and online 3 Offline and online
with entrepreneur/s interviews lasting 1.5 interviews lasting 1.5 hours
hours each each conducted by both
conducted by both the the researchers
researchers
Number of other 2 Viewed by the first 2 Viewed by the first
online interviews researcher researcher
Number of interviews 1 Conducted by the first 3 Conducted by the first
with artisans researcher researcher
Extensive review of Yes Conducted by both the Yes Conducted by both the
the website researchers researchers
Review of other Yes Reviewed by both the Yes Reviewed by both the
social media channels researchers researchers
Internal company Yes Reviewed by both the Yes Reviewed by the first
documents evaluated researchers researcher
Source: The authors.

period of six months (Bartlett & Vavrus, 2017), while the second case was completed within five months
by the means of replication (Yin, 2009). The cross-case analysis method propounded by Eisenhardt
(1989), enabled the researchers to create a comparative case study.
Extensive unstructured interviews with the co-founders of Desi Hangover and the founder of H.G.
Group revealed rich in-depth data. The online and offline interviews were conducted by both the
researchers, which lasted up to an hour and a half each (refer Table 1 for primary and secondary data
collection sources). These interactions were triangulated with the study of other available online
interviews and social media profiles, as well as interactions with the ventures’ artisans. In addition,
documents pertaining to sales, procurement of organic raw materials, quality certifications and company
websites were reviewed and the data were collected between February 2020 and January 2021. An
iterative literature review and data collection process enabled the researchers to create the context for the
cases. The entrepreneurs were asked to read the prepared cases, and the cases were finalized through
respondent validation.
This comparative case study analyses how entrepreneurial firm-level sustainability-driven initiatives
impact stakeholder relationships (Gonzalez-Porras et al., 2021). As recommended by Crowe et al. (2011),
the voluminous data were sorted and re-sorted to develop each detailed case, and through case-to-case
synthesis (Yore & Rossman, 2010), meaningful comparisons were drawn between the two firms by
applying the sustainable entrepreneurship framework of environmental, social and economic parameters.
Both the researchers were involved in data collection, evaluation and analysis, and any disagreements in
the case-to-case synthesis were resolved through discussions.

Findings
The founder background, motivations and relevant quotes are interwoven into the two cases to portray
how the key sustainability initiatives of these companies create social, economic and environmental
impact (see Table 2, for founder profiles).
14 South Asian Journal of Business and Management Cases 11(1)

Table 2. Founder profiles: Desi Hangover and H.G. Group

Founders Age Qualification Description Equity

Hitesh Kenjale a
30 Bachelor of He is the co-founder of Desi Hangover. He heads business 40
Engineering development, finance and supply chain
(BE) He has worked as a business development manager at
‘Theek Kar Do.’
He has completed the internship in Egypt at ‘Dar Al Sabeel’, an
NGO for human rights
Abha Agrawala 32 BE She is a Co-founder of Desi Hangover. She heads the product 30
design, development and retailing
She is a project lead at Stanford Seed Transformation Network
and is a TEDx speaker.
She is a former lecturer at Vidyalankar Institute of Technology
(2012–2014).
Lakshya Aroraa 28 English He is a co-founder of Desi Hangover. He heads marketing. 30
Honours and He has completed an internship in Egypt with AIESEC, Cairo, a
Journalism non-profit organization
He studied journalism at Punjab University
Dushyant 60 Bachelor of He has worked for 16 years (1986–2001) in the Indian textile 100
Parikhb Textile, MBA industry, and it includes an international work stint (1991–
(Marketing) 2000).
He founded and heads the H.G. Group, a firm designing,
producing and selling hand-woven fabrics to world-class brands
Source: The authors.
Note: aDesi Hangover and bH.G. Group.

Case I: Desi Hangover: Hands that Make Footwear

In 2014, Arken Enterprises was started by student entrepreneurs to take India’s hand-woven and
handcrafted leather footwear to the world. The idea was to blend traditional designs with hand-carved
leather made by rural cobbler artisans to create trendy, comfortable footwear and market them globally
under the brand name Desi Hangover.1
Hitesh Kenjale was an engineering student from the city of Mumbai, the financial capital of India,
located in the western state of Maharashtra. Kenjale had attended some entrepreneurship seminars and
workshops and had gotten interested in the designing and marketing of Kolhapuris.2 Sturdy, durable and
economical, the leather Kolhapuris derive their name from Kolhapur, a small town in western India, and
this traditional occupation of footwear-making has been handed down through the generations.
In 2013, in Egypt, Kenjale met Lakshya Arora, a journalism student from Punjab, a northern Indian state
who was interested in entrepreneurship. Arora shared Kenjale’s interest in marketing the Kolhapuris. When
they returned to India, both kept in touch while pursuing their studies. Abha Agrawal was Kenjale’s tutor, and
she joined the venture as she saw value in Kenjale’s business proposition of marketing the Kolhapuris.
Relationships within social networks provide entrepreneurs with social capital such as co-founders, suppliers,
important connections and information that help them grow their business (Khokhawala & Iyer, 2021).

Social Impact
The team set out with a simple mission: to make handmade Indian leather footwear as trendy and in as
much demand as Italian handmade leather products. A group of local artisans of the Chambhar3 community
were engaged in the production of leather goods. Limited awareness of efficient production methods and
Khokhawala and Iyer 15

the lack of quality raw material had forced the cobbler artisans to compromise on product quality to compete
with low-quality machine-made footwear. Availability of cheap machine-manufactured footwear caused
demand to dwindle for the Kolhapuris, resulting in the loss of livelihood for the artisans and jeopardizing
the future of the cobbler community. Says one of the artisans, ‘we would subsist with meagre earnings we
got for our handmade footwear and were at the mercy of middlemen’. Most of them were landless labourers,
and making footwear was their main source of livelihood. Social mobility and the possibility of achieving
equal economic status in the village were almost non-existent for these artisans.
Kenjale had been researching the making and designs of the Kolhapuris, and the trio decided to set up a
workshop at the border of the states of Maharashtra and Karnataka, in a small hamlet that had preserved the
legacy of an 800-year-old art of footwear making. Agarwal’s motto for bringing equity in society was, ‘If
everyone works to the best of their ability, they would achieve success and the country would prosper’.
Seeing the opportunity for better lifestyle and enhanced earnings, a large number of members of the
cobbler community joined them. Since the company began its operations, the age of an average cobbler
artisan has reduced from 30–35 to 25–27 years. The company also invests a part of its profits in the
education of the artisans’ children. A radio frequency identification (RFID) chip is embedded into the
footwear, which provides information about the artisans, allowing customers to understand the impact
created by their purchase. From initial two cobbler families, there are more than 70 families working
with Desi Hangover, and those who joined earlier now have many others working for them. Sustainable
entrepreneurs create complex social networks that support their venture and drive venture growth (Gray
et al., 2014).

Economic Impact
By creating a profitable venture, the entrepreneurs have been able to improve the socio-economic life
and future of the cobbler community. The entire family is involved in the production of footwear: the
male cobblers perform strenuous activities like cutting the leather and creating the sole and shoe outers,
while the women perform creative and fine artwork activities like designing and weaving the lace. The
trendy designs and good quality raw material enhance comfort and look, while attracting a premium
pricing. The company’s marketing strategy entails display at retail shoe stores and online marketing.
Customers are drawn to the website for experiencing the product through other online social media
channels, and understanding the social impact leads to product purchase. Agrawal believes, ‘If you
provide a quality product, customers are willing to reward it with the right price’. Starting out with just
2–3 designs, today, the company offers more than 50 styles and one design ‘HOLA’, which displays
intricate handiwork, is popular with customers domestically and internationally (Figure 1).

Figure 1. HOLA Ladies Footwear

Source: Arken Enterprises.
16 South Asian Journal of Business and Management Cases 11(1)

The company could have employed the cobbler artisans but instead chose to partner with them,
giving them an incentive to learn new designs and improve their earnings. Says Kenjale, ‘We plan to
increase our footwear portfolio and engage with a million cobbler artisans by expanding product
sales’. Today, the monthly income of each cobbler family has increased from `6,000 (US$81) to
`16,000 (US$216) per month, a dying art is now flourishing, and the Indian heritage has been protected
from extinction.

Environmental Impact
Making handmade footwear is time-consuming as it requires moulding the leather by hand and includes
intricate design work (Figure 2). Once the design is ready, the major challenge becomes the procurement
of good quality leather. The cost of procuring ethically sourced leather is high. The leather used is
upcycled from waste from the meat industry (Desi Hangover, 2021). They also procure animal hide that
would otherwise go to the landfill. This leather is sun-dried and hand tanned. Sal wood and organic
products like turmeric are used to colour the leather.
The entrepreneurs have used their engineering background to introduce innovations like a patented
foot-locking system that prevents the leather footwear from losing shape through wear and tear, which
enhances product life cycle and usability. Suede insoles enhance comfort and durability for customers.
A cobbler artisan, who was one of the first to join Desi Hangover, signs off

I achieved a new milestone when I purchased a piece of land and became a landowner. Due to our association
with Desi Hangover, I know our children have a future. They could study and become professionals or if they
want, they could join our profession. We have found the liberty to dream.

Figure 2. Parts of Footwear

Source: Arken Enterprises.
Khokhawala and Iyer 17

Case II: H.G. Group: Creating a Cultural Connect

Dushyant Parikh, after finishing his Master of Business Administration (MBA) in 1986, from Mumbai,
India, worked in the Indian textile manufacturing industry for 16 years, and this included an overseas
stint of close to a decade. In 2002, he plunged into entrepreneurship and started the H.G. Group in the
city of Ahmedabad located in Gujarat, a western state of India. The company promotes Indian artisanal
work and hand-woven fabrics in the global fashion industry.

Social Impact
Parikh was greatly inspired by his great grandfather and Narhari Parikh,4 his great grand uncle, and they
had taught him the value of Indian traditional arts. There was no comprehensive database of Indian
artisanal techniques at hand, but he knew that India had many handprint, handloom and hand dye artisans
who were capable of making good quality fabrics. Consequently, he appointed local jobbers who knew
artisanal markets well to connect him with the artisans. Network ties are ‘critical asset providers’, giving
entrepreneurs access to funds, goods, suppliers and customers (Bhagavatula, 2009, p. 8). He had also
developed international connections during his long-term working stint with a leading Indian textile
company. Says Parikh, ‘I convinced fifteen global brands such as Ralph Lauren, Gap, Eileen Fisher and
Polo to add handmade Indian fabrics to their international collections and use them on their fashion
ramps’. Parikh collaborates with local artisans in 10 Indian states and has created rural employment for
more than a quarter of a million people, directly and indirectly. These artisans mainly operate in the
unorganized sector, and the employment opportunity promotes artisanal welfare. Parikh sells khadi
through 130 small stores in the United States of America (USA), the European Union (EU) and Japan.
He and his team have also created silk–wool designer fabrics, using artisanal ikat,5 that are showcased
globally for Woolmark.6

Economic Impact
Parikh has set up a ‘bespoke’7 design-led model, wherein he gets the designs approved first, obtains
confirmed orders and then creates the customized fabrics for each brand (H.G. Group, 2021). These
orders are communicated to each artisan who is given the design, colours and number of metres of cloth
to be produced. Dyed yarns, artisanal handprints, indigo handprints, wax prints, shibori8 technique and
digital prints are used to create silk, cotton and Tencel garments (Figure 3). The company can produce
half a million designs and offers 15,000 curated designs, and these designs are created with 50 artisanal
techniques, which are exported to 17 countries. The company has manufactured more than 1.8 million
metres of designer fabric since 2002. One of the artisans, employed by Parikh, reveals ‘He pays us on a
piece-rate basis rather than an hourly basis which helps us improve our earnings, and he readily grants
an advance when we need it’.
Parikh offers,

Pandemic-like situations may easily tailspin into unemployment and poverty forcing migrations, thereby
adversely affecting the rural economy. We are in the process of collaborating with organisations such as the Aga
Khan Trust and the Somaiya Trust to build long term solutions that would limit the disruption to artisan lives.

Parikh is presently creating an online business model, wherein retail customers would be able to choose
their fabric, colours and designs at various price points to create a unique garment, and he hopes to create
transparency in business processes ranging from production to delivery. He is also opening an artisanal
design studio in the USA to expand awareness about the Indian hand-woven material.
18 South Asian Journal of Business and Management Cases 11(1)

Figure 3. Brush-Printed Garment for Eileen Fisher

Source: H.G. Group.

Environmental Impact
Parikh’s bespoke design model is a demand-led approach, leading to lower wastage and a reduction in
unused stock, which promotes responsible consumption and production patterns. The company is Global
Organic Textile Standard (GOTS) certified, signifying that the company uses verified end-to-end
sustainable processes right from production of the raw material to packaging and disposal. Using organic
cotton and hand-woven fabric reduces carbon emissions. Cotton has high water consumption per square
metre of land, and the company obtains organic cotton from producers who recharge the water. The
fabric is made on power looms that run on wind power. Khadi, a cotton fabric worn and promoted by
Mahatma Gandhi, is entirely handmade according to the Khadi and Village Industries Commission
(KVIC) norms and uses no energy, except for transportation from the village to the market. Recycled
polyester, extracted from recycled garments, is procured from ITOCHU,9 Japan, for making garments.
Parikh likes to experiment with new organic materials like Tencel—a soft, long-lasting fabric—that
is produced from wood, a sustainable raw material. Fabrics are dyed with vegetable or natural dyes such
as pomegranate, turmeric, natural indigo, mud and iron water (Figure 4). Garment and packaging waste
is recycled into useful products like handbags and children’s products (Figure 5), and 99% of all the
clothes are recyclable. As a member of the Textile Exchange, Parikh is committed to better water and
waste management, reduced chemical usage, transparent pricing, gender equity in wages and circular
business models. The H.G. Group is a zero discharge of harmful chemical (ZDHC) company and is
Khokhawala and Iyer 19

Figure 4. Seven-Stage Handprinted Shirt for Faherty

Source: H.G. Group.

Figure 5. Recycled Solutions for Waste Material

Source: H.G. Group.

certified by Nest Artisan Guild/GRS/Intertek/Bureau Veritas/SGS.10 Parikh summarizes his views on

sustainable entrepreneurship ‘Do not let ROI11 drive you to be an entrepreneur but build value into your
business through sustainable processes that benefit society’.
The case findings are discussed earlier on the social, economic and environmental impact generated
by Desi Hangover and the H.G. Group. Further, the key sustainability strategies of the two cases are
presented in a tabular form to facilitate comparison between them. Table 3 maps each venture’s
20 South Asian Journal of Business and Management Cases 11(1)

Table 3. Key Sustainability Outcomes

Outcome Desi Hangover H.G. Group

Social Higher living standards created for artisans Higher living standards created for artisans
Medical support provided for artisan families Chemical-free dyes protect artisan health
Protecting an 800-year-old footwear Supporting artisanal work and artisanal
manufacturing technique techniques
Supporting education within the village Gender inclusion promoted
Gender inclusion promoted Prevention of rural-to-urban migration
Economic and social mobility created Freedom from local moneylenders
Prevention of rural-to-urban migration
Freedom from local moneylenders
Dignity of labour propagated
Economic Provide good quality raw material at fair prices Provide good quality raw material at fair
Design support and training to improve product prices
quality Design support and skill development to
Creating access to market improve product quality
Non-farm income generated Creating access to market
Economic freedom created for 70 artisan families Non-farm income generated
Improved production efficiency through better 25,000 artisans gain employment directly
production methods and indirectly
Creating international demand for handmade Creating international demand for khadi
leather footwear fabric and ethnic designs Provides advance
Enabled cobbler artisans to employ other artisans, to artisans, leading to economic freedom
thereby generating employment Economic empowerment as artisans paid
Crowdfunding to provide food during the pandemic per-piece basis rather than on hourly rate
Environmental Organic processing of leather Use of organic cotton
Environment-friendly packaging Solar and wind energy used
Upcycled 40,000 square feet of leather Recycling of manufacturing waste
Product longevity improved through innovations 99% of the products are recyclable
Experimenting with new-age eco-friendly fabrics
Source: The authors.

contributions on the sustainable entrepreneurship framework. Desi Hangover and the H.G. Group have
improved the standard of living of their key stakeholders—the artisans—and are working to enhance the
company product portfolio by diversifying their artisan networks. By prioritizing labour participation of
the rural population, both the firms have created a source of non-farm income, impacted gender equality
and have created better health and growth opportunities. In addition, they strive to use organic raw
materials, upcycle and recycle waste, and reduce the environmental cost of production.
Table 4 presents the sustainability costs incurred and how each company creates value for the customer
so as to build profitability. The sustainability-driven cost processes are segregated based on the social,
economic and environmental impacts. Input costs like organic raw materials and payment to artisans are
higher for both companies. The customer value proposition entails creating a premium-based product,
increasing production efficiencies and lowering marketing costs to generate profits.
Table 5 outlines future challenges in sustainability implementations in both ventures. There is scope for
improvement in production, packaging and recycling by implementing higher energy-efficient processes in
production and distribution, reducing dead stock and undertaking greater end-stage recycling.
Khokhawala and Iyer 21

Table 4. Sustainability-Driven Business Model

Sustainability Costs Desi Hangover H.G. Group

Social Better compensation to artisans Better compensation to artisans
Paying for the health costs of artisans Providing advances
Supporting education of artisans’ children
Economic Promotion costs for Indian handmade ethical leather Promotion costs for little known 50
footwear artisanal techniques
Manual processes may lead to product defects Manual processes may lead to
product defects
Environmental Higher cost due to inputs (natural colouring agents) Higher cost of inputs (organic
Procurement of raw materials (good quality leather) cotton)
Higher dyeing cost (no harmful
chemicals used)
Customer value Premium products—trendy, comfortable and long- ‘Sell and make’ model cuts stocking
proposition lasting footwear in 50 styles and holding costs
Using natural dyes that are less harmful for skin Artisanal prints created with natural
Better production efficiency through workflow dyes, which are less harmful for the
management skin
Selling through online channels Half a million designs offered
Foot-locking system introduced to maintain shape Fabrics available in 15,000 curated
and longevity designs
Suede insoles add to comfort Customers (global brands)
RFID chip embedded in the shoes and sandals understand and appreciate the
to educate customers about artisan welfare and sustainability thrust of company
preservation of heritage B2B* sales lower marketing costs
B2B* sales lower marketing costs
Shortening the supply chain by sourcing directly
from the cobbler artisans
Source: The authors.
Note: *Business-to-business.

Table 5. Future Sustainability Challenges for Desi Hangover and H.G. Group

Name of Packaging and Consumption

Company Manufacturing Distribution and Recycling
Desi Hangover Organic alternatives to leather to be Energy-efficient Recycling of used shoes/
considered distribution slippers
Sustainable sources of energy Greater pricing Disposal of dead stock
Reduce production waste going to transparency End-to-end circularity
landfill approach
Quality certification of production
processes
Reduce defected stock
H.G. Group Sustainable sources of energy at all Energy-efficient Sustainability processes for
locations distribution methods to be disposal of used garments
Reduce defected stock considered Reduce deadstock
Greater pricing
transparency to be created
Source: Adapted by the authors from Impaakt (2022 ).
22 South Asian Journal of Business and Management Cases 11(1)

Discussion
Desi Hangover was started with a vision to make Indian leather handmade products as sought after as the
Italian ones, while Parikh, inspired by his great grandfather and great granduncle, wanted to showcase
Indian artisanal designs on the international fashion stage. Both these companies have gone beyond
sustainability and redefined fashion in their own unique ways. The Kolhapuri slippers were losing their
market and going out of fashion on account of faster production methods and cheaper footwear. Desi
Hangover has internationalized them and brought them into a premium product category. Garments
made with artisanal techniques are time-consuming, expensive and, unlike machine-made products,
could flaunt slight color and design discrepancies. Parikh has put them on the global fashion map by
inviting top brands to go for handmade artisanal products.

Social Outcomes
Sustainable entrepreneurs develop complex social networks as they construct supply chains. The
entrepreneurs of Desi Hangover ran workshops on footwear manufacturing techniques at the border of
the states of Maharashtra and Karnataka to train village-based cobbler artisans to create a world-class
product, and the H.G. Group set up an artisan base in 10 Indian states via local intermediaries. Both the
firms are working within the hinterland of India and supporting the rural economy, thus breaking the
cycle of poverty, urban migration and economic vulnerability. This is also protecting the country’s
traditional arts and crafts and sustaining the heritage. Through education and training, they are supporting
the future of the artisans, thereby encouraging upward social mobility. The entrepreneurs have gone
beyond their ventures and are involved deeply in helping their developed social networks thrive.
Maintaining product quality and educating the customer on the impact of their purchase on artisan life
concerns both these ventures.

Economic Outcomes
The firms are offering fair compensation to the artisans, thereby protecting them from exploitation and
have brought in modern production techniques, which reduce manual labour and upgrades their incomes.
Desi Hangover spent time, money and effort in training the cobbler artisans in new designs, marketing
concepts and new production methods. Once their earnings started to rise, the artisans were taught
financial management like savings and investment to ensure that they did not fritter away their earnings.
Like the H.G. Group, some other companies also offer an artisanal product portfolio, but their website
shows that the amount of artisanal output used in these products would be insufficient to promote artisan
welfare.

Environmental Outcomes
Both leather and textile products are historically polluting, and building sustainable innovation processes
in these industries would lead to a long-term environmental benefit. The entrepreneurs are driven by a
sustainability vision that permeates each business process, thereby creating a sustainable business model,
but there are some challenges. Desi Hangover ensures its leather is upcycled, ethically sourced and is
processed organically. Parikh ensures that the artisans continue to procure and work with chemical free
Khokhawala and Iyer 23

dyes, which are expensive, while less discerning competitors are open to working with economical but
chemical-laden dyes, which are harmful in the long run to both the artisans and the customers.
As an emerging economy, India needs a multipronged approach to deal with unemployment, poverty
and environmental degradation, and Indian entrepreneurs who are working to solve these challenges may
be termed as sustainable entrepreneurs. Until emerging economies realize the value of conscious
consumerism, sustainable products may face limited demand and would be sold only at a premium in
these markets, as is seen in the case with these two companies. Some studies have revealed that customers
are willing to pay a premium when they are assured that product innovations are sustainable rather than
superficial, and this concern could be mitigated through proper certifications (De Boer, 2003).
The artisans need to be assured that their traditions are respected and are important to the country’s
development (Harvard University, 2016). The artisan community needs access to new technologies and
better institutional framework (Development Commissioner-Handicrafts, 2022). Economic upheaval
puts pressure on fragile artisanal networks, forcing artisans to reconsider employment options. Promoting
artisan clusters through infrastructural support to protect the heritage and improve exports is leading to
socio-economic development of rural areas (Development Commissioner-Handicrafts, 2022). Special
attention could be paid by entrepreneurial ecosystems to the needs of sustainable entrepreneurs who
require greater stakeholder engagement and complex social networks to succeed. Sustainability-driven
policymaking endeavours could include documentation of artisanal techniques, creating a verifiable
database of artisan clusters and incorporating these techniques into modern schools of design and
technology. Policymakers could ensure that products carry correct quality labels, and that the certifications
accurately discern the sustainability status of the product (De Boer, 2003).
This applied research on sustainable best practices adds to the area of sustainable entrepreneurship
and demonstrates how some Indian entrepreneurs are successfully combining sustainability with
profitability. While Desi Hangover made positive margins from the very first pair of footwear they sold,
Parikh was able to break-even after one year of operations. Using shared or borrowed premises, roping
in family members to work for the venture, employing interns and controlling overheads are some cost-
cutting measures used by these entrepreneurs to build profitability.
This comparative case study provides a case-to-case synthesis by analysing, comparing and contrasting
social, economic and environmental outcomes, firm-level stakeholder engagements and the role of
sustainable innovations in venture success. The case research also portrays the relevance of sustainable
entrepreneurship to emerging economies that face higher social and environmental challenges on account
of rapid growth and industrialization. It highlights how the need for environmental protection could
potentially fuel sustainable innovations in every industry. In addition, such case studies could guide other
entrepreneurs on how to build and grow sustainable ventures.

Conclusion
The awareness of eco-friendly products and the need to protect the environment are growing in India, but
greater effort is required, and sustainable entrepreneurs could lead the way. Adoption of slow fashion by
customers, conscious consumerism and relinquishment of a use and throw economy would support more
responsible production and consumption. A multi-stakeholder approach is required where academia,
entrepreneurial ecosystems, research institutions, non-profit organizations, consumers, the government
and industry players contribute to sustainability and circular economy approaches. The growing
awareness that business is capable of impacting social problems and environmental degradation and be
24 South Asian Journal of Business and Management Cases 11(1)

profitable at the same time is giving rise to a new class of entrepreneurs who are willing to experiment
with innovative business models (Roundy, 2017).
This case study, though limited by its sample size, has revealed the scope of sustainable entrepreneurship
in emerging economies in general, and in the Indian context in particular. Entrepreneurs in developing
and emerging economies may be more inclined to move ahead with sustainability as a result of the social
and economic realities existing in these countries. Testing the hypothesis of higher sustainable
entrepreneurship intention in developing and emerging economies versus developed countries may be a
pertinent future research direction arising out of this study.

Acknowledgements
An earlier version of this article was presented at the ‘3rd International Conference on Challenges in Emerging
Economies’ at the K.J. Somaiya Institute of Management, Mumbai, India, on 26 February 2021. The authors thank
the esteemed editor of this journal, Dr A. K. Dey and the two anonymous reviewers for their valuable contribution
in the development of this case research.

Declaration of Conflicting Interests

The authors declared no potential conflicts of interest with respect to the research, authorship and/or publication of
this article.

Funding
The authors received no financial support for the research, authorship and/or publication of this article.

ORCID iD
Shirin M. Khokhawala https://orcid.org/0000-0001-7849-1784

Notes
1. Desi, in the Indian Hindi dialect, means something made locally, while ‘Hangover’ points to an Indo-western
makeover.
2. Slippers.
3. A class of labourers from Karnataka.
4. A contemporary of Mohandas Karamchand Gandhi (Mahatma Gandhi).
5. Tie and die method used to create different coloured yarns that are then woven into the fabric.
6. International certification for pure wool.
7. The ‘sell and make’ model is different from the traditional ‘make and sell’ practice of the textile industry.
8. Japanese tie and dye technique using indigo colour to create patterns on white cloth.
9. A Japanese multinational corporation.
10. Global certification agencies.
11. Return on investment.

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