1. Introduction
The begin of the 21st century is facing many social, economic and environmental challenges in Europe and worldwide. It is also digital age which brings opportunities to learn effectively with the use of artificial intelligence. The aim of this contribution is to introduce Kabada (Knowledge Alliance of Business Idea Assessment: Digital Approach) unique tool, together with opinions of young people about entrepreneurship. Our focus is primarily on students with low business background, who study natural sciences, engineering and other core areas at the Faculty of Forestry and Wood Technology at Mendel University in Brno, Czech Republic. Kabada was developed by a team of international experts and has been already tested at several higher education institutions. It is a tool which can be used for better forestry management and we suggest to use it in daily teaching of students preparing for forestry or related professions. Kabada is structured, Web-based platform that purports to take the guesswork out of business plan development. Informed by theoretical research, relevant statistics, and artificial intelligence (AI) insights, the tool guides new entrepreneurs through every step of the way, helping them understand where they stand, where and how they might consider going, and what challenges and opportunities lie ahead [
1]. This tool can be used to improve forester management skills as well as to be helpful for forest entrepreneurs. In the digital age, skills needed for successful entrepreneurship can be obtained by using automated software with machine learning and artificial intelligence. This is widely used in both business and everyday life and we suggest to use it also in education and other areas of societal life [
2].
Entrepreneurship is introduced in various ways including economic, psychological, sociological or legal aspects. The economic concept stresses the fact, that it is a dynamic process creating added value. The psychological concept is focused on achieving self-fulfillment, cutting loose, becoming independent, etc. The sociological concept introduces entrepreneurship as creating prosperity for all those interested, looking for ways to better use resources, creating jobs and opportunities, while the legal concept is grounded in effective legislation [
3]. Becoming an entrepreneur offers young people the opportunity to deepen their human capital attributes, such as self-reliance or skill development, and to increase their level of happiness. Among societal benefits we can name creation of jobs, increasing innovation, raising competition and responding to changing economic opportunities and trends. There are latent entrepreneurs amongst young people. Two-in-five young people in the EU would like to set up their business, as suggested by Euro Flash barometer data. For this reason, youth entrepreneurship is attractive to policy makers. Youth entrepreneurship in EU (self-employment) rates are low relative to the adult population and males and 'older' young people are more likely to be in entrepreneurship [
4].
Europeans in general prefer to be self-employed (45%) or employed (50%) as mentioned in the EU twenty-five member states survey and US, Norway and Iceland in comparison with US, where European citizens like to be employed, whereas Americans prefer being self-employed. These attitudes have not changes since 2004. Young people from 15-24 years old incline to a greater extent to entrepreneurship than other age groups and 51% of respondents aged 15-24 would like to have their own business, when comparing the US to the EU25. For other age groups, the figures are falling down, such as 41% for 25-39 old or less than 30% for older ones [
5].
Youth entrepreneurship is often introduced in the context of youth unemployment. Long term unemployment has serious influence on individuals including reduced earnings and social exclusion. In 2011, one-in-five young people in the EU were unemployed. The level of youth unemployment was very high in several EU member states, with rates of over 50% recorded in Spain and Greece in 2013. Naturally, creation of employment opportunities, sustainable growth, promotion of youth entrepreneurship and making Europe more entrepreneur-friendly has become a priority on the EU policy agenda [
6]. With the economic and financial crisis after 2008, youth unemployment has reached ‘alarming levels’ in some EU member states. Youth unemployment, like unemployment in general, has many undesirable economic, social, and political consequences for societies and individuals alike [
7].
The research confirms that more men tend to be self-employed than women [
8]. On average, the proportion between men and women in business is 1.9 [
9]. In the case of Czech Republic, 2.6 times more men than women do business and there is a significant dominance of university graduates [
10]. The number of active female entrepreneurs has been growing continually in the Czech Republic, unlike the number of active male entrepreneurs, which has been stable since 2011. There is also a long-term trend in the Czech Republic, with a growing number of self-employed people who do business as a secondary activity. The number of people whose business is their core activity is decreasing [
11].
To start a business and continue the activities, people should be motivated. According to Jirovská [
12], people start doing business as a result of two causes - either due to negative events and dissatisfaction at work, risk of unemployment or no opportunity for personal growth (so-called push theory), or because of attractive opportunities available on the market (so-called pull theory). Williams, Round and Rodgers [
13] are critical about this classification of entrepreneurs to those “forced” to do business and those who use market opportunities. People usually decide to do business based on a combination of push and pull factors, and the incentives of entrepreneurs change over time.
The optimistic outlook is that people see their self-employment as an opportunity. In the EU 15 (as well as the EU 25), almost 60% of respondents think starting a business is more an opportunity than a necessity. Lack of funds was found to be the main obstacle in doing business. Further obstacles are complexity of administration as well as insufficient information on how to start a business [
5]. Staniewski and Awruk [
14] identified as main factors motivating people to start their own business personal self-fulfillment and self-satisfaction, the possibility of higher earnings and independence in decision making. Authors identified as the main factors in potential businessmen preventing them from starting business a lack of experience, capital and the risk of failure.
The importance of responsible business lies in reflecting the core values of society. Responsible business is essential for businesses large and small, which can improve their economic, environmental and social performance in the short and long term through innovative products and services, new skills and stakeholder engagement. It involves a commitment by a company to conduct its economic activities in an efficient, socially and environmentally responsible manner, taking into account the interests of all stakeholders. Key approaches to promoting sustainable development include an emphasis on a process approach, non-financial performance of the business and sector stability. The success of companies in a highly competitive environment depends on their ability to adapt to the ever-changing demands of customers and to the development of knowledge and associated new technologies in the production of different products, new information systems, etc. At the same time, enterprises must fulfil a number of other functions, particularly those related to the social and environmental aspects of business. In the context of these tasks, the concept of sustainable business is emerging, the principles of which many companies are already incorporating into their strategic plans and many of which are already being implemented.
Thanks to climate change, the agriculture and forestry sector will face a number of challenges in the future, to which it will have to respond through sustainable innovation. It is therefore essential to explore approaches, tools and methods that will contribute to meeting these challenges. Nowadays, the survival of businesses depends not only on economic performance, but also on demonstrating a positive attitude towards the various stakeholders affected by the company's activities. In other words, businesses face increasing pressure from their environment to act in a socially responsible manner [
15]. The increasing importance of environmental protection has an impact on all activities of the enterprise.
A business that does not focus only on short-term profit but also considers the principles of long-term sustainability can be called a sustainable business that is based on the above-mentioned principles of sustainable development [
16]. According to the Vrabcova et al. [
17], the fundamental starting point is environmental friendliness, both locally and globally. With dwindling supplies of natural resources, the demand for sustainable products and consumption is growing exponentially. Authors Orecchini et al.; Ahi and Searcy; Hajek and Kubová agreed that sustainability is becoming a fundamental principle for businesses [
18,
19,
20]. Sustainability research is continuously expanding, as evidenced by researches such as Teece [
21], Wichaisri and Sopadang [
22] and Zemigala [
23].
As stated by Hummels and Argyrou [
24], one of the ways to overcome the dichotomy between current and future generations and the tension between discourses is sustainable entrepreneurship. The authors stress that sustainable business can make a significant contribution to improving environmental sustainability while operating a profitable business. Salmivaara and Kibler [
25] add that current generations support entrepreneurial activities that are assumed to contribute to sustainable development, ignoring the fact that entrepreneurship potentially brings negative externalities.
Patzelt and Shepherd [
26] define sustainable entrepreneurship as discovering, creating and exploiting opportunities to create products that sustain the natural environment and provide development opportunities for other stakeholders. Kuckertz and Wagner [
27] or Vrabcova and Urbancova [
28] add to the theme of sustainable entrepreneurship that it is those businesses that aim to manage the triple bottom line.
Sustainable business models [
29] are primarily tools to ensure the social and environmental sustainability of systems. The ability to quickly and successfully transition to these business models is an important source of sustainable competitive advantage [
30] and a key factor for improving the performance of organizations and supply chains [
19]. As competition increases, it is advisable to demonstrate to customers that an organization provides a quality product that does not harm the environment or endanger the health of its employees [
31]. Product quality is assured by qualified personnel, correct and verified production procedures and ensuring qualified production processes, reliable production equipment, appropriate measuring, inspection and testing equipment. However, as Geissdoerfer et al. [
30] reports, many business model innovations fail, and the reasons for these failures are hardly explored [
16].
Sustainable business models are defined by Schaltegger et al. [
32] as the creation of customer and social value through the interaction of social, environmental and business activities. To this definition, Geissdoerfer et al. [
33], Geissdoerfer et al. [
30] or Nosratabadi et al. [
16] add additional stakeholders that an organization needs to create, deliver, capture and exchange sustainable value. What these definitions have in common is that they see sustainable business models as a modification of conventional business models with added characteristics, namely incorporating sustainability-focused concepts, principles or goals or integrating sustainability into value propositions or mechanisms [
30].
Examples of sustainable business models include sustainable start-ups [
34] [
35], transformation to a sustainable business model [
16] or social enterprises [
36], which aim for social impact by generating profits from economic activity. Cooney [
37] bases sustainable business on the following principles: sustainability principles are incorporated into all management activities; environmentally friendly products are an appropriate alternative to less sustainable alternatives; sustainable business is a pathway to competitiveness and respects environmental principles in operations. Baumgartner [
38] adds to the above, if sustainability aspects are not part of the mindset of an organization’s managers, they will not be effective and are very likely to fail.
Despite extensive research on sustainable business models, there is no comprehensive picture of how businesses in different sectors can implement sustainability into their business models [
16]. However, some authors [
34] have addressed a number of trends that can be seen as drivers of sustainability-related business model innovation. These include in particular the circular economy [
16], corporate social responsibility [
39,
40,
41,
42,
43], the sharing economy [
44], technological innovation [
45] and lean manufacturing [
22]. Developing sustainable business model innovations in agriculture and forestry is important [
46], as the sector is inherently linked to respect for nature and its resources.
As stated above, sustainable business is based on the principles of sustainable development, which requires simultaneous and balanced progress in 3 areas that are relatively independent - social, economic and environmental [
19]. The basic assumptions of the social pillar include the eradication of poverty [
47] [
48], both within and between regions and in global settings between countries and geopolitical entities [
49]. Equal access to basic sanitation and medical care, the suppression of manifestations of discrimination, racism as well as xenophobia and religious intolerance are all encompassed within the social pillar [
49]. The social domain can be thought of as a group of external and internal elements; internal elements include issues such as occupational health and safety, employee training, job satisfaction, equal opportunities, gender, ethnic, age and other balanced employee mix, turnover rates, non-discrimination of any type, and others. The external social pillar may include corporate giving, volunteering, social integration, assistance to disadvantaged groups, employment development, debt prevention, education promotion, consumer protection, etc. [49.] The economic pillar, according to Baumgartner and Rauter [
50], consists of all economic activities, the interactions between them, and the interactions between the environment and society.
Most common (macro)economic indicators correspond to the growth orientation of mainstream economies. Thus, costs, losses and natural resource degradation are not considered. To illustrate this, the following example can be given: the reported macroeconomic indicator of gross national or domestic product includes, without distinction, activities that contribute to well-being and activities whose consequences clearly degrade the quality of life and the environment. These include, for example, arms production, environmentally damaging agricultural practices, and the devastation of land by strip mining. In relation to the economic sphere, we can mention for example [
50]: code of ethics and other strategic documents, transparency and combating corruption, after-sales service to customers, protection of intellectual property (in the form of patents, utility models, prototypes, etc.). In the last, the environmental area, some important factors can be mentioned [
51]: mainly the amount and type of waste in the organization, the consumption of renewable and non-renewable resources, water and energy consumption, hazardous chemicals and their handling, greenhouse gas emissions, ecological footprint, carbon footprint, biodiversity protection, etc.
Voluntary tools that companies can apply to promote sustainable business include: in the context of the internal social area, age management, while the external and internal social area is represented in the research by corporate social responsibility. Within the economic area, strategic documents such as the corporate strategy and a number of functional strategies can be discussed, the implementation of which is quite crucial not only for agricultural and forestry enterprises, such as the code of ethics, organizational culture strategy, ergonomic, environmental, innovation strategy and others. In relation to the environmental pillar of sustainable development, the possibilities of including non-market ecosystem services in environmental management accounting can be discussed, as well as selected aspects of the carbon footprint and its specifics when calculated in a forest enterprise.
2. Materials and Methods
The Kabada tool was developed in years 2019-2022 in cooperation of these institutions: BA School of Business and Finance (Riga, Latvia, Coordinator), Vilniaus kolegija / University of Applied Sciences (Vilnius, Lithuania), Mendel University in Brno (Brno, Czech Republic) Polytechnic Institute of Setúbal (Setúbal, Portugal), ArtSmart (Riga, Latvia), Youth Entrepreneurship Promotion Association (Lithuania), Centro Studi “Cultura Sviluppo” (Italy), JSC “Development Finance Institution Altum” (Riga, Latvia) and SWH SETS Ltd (Riga, Latvia). Authors of this contribution are project team members [
1].
From autumn 2022 it was tested by potential users. We have conducted a research which consisted of survey number 1 given before using Kabada tool. Students filled in a survey on-line and later listed to a seminar where Kabada tool was introduced. They accessed the Kabada platform, followed the steps of a user and tried to make their own business plan. After this experience they were asked to fill in survey number 2. The aim of the pre and post survey was to find out what is the self-assessment of students related to entrepreneurship and how does it change after Kabada experience.
Our respondents were students from Mendel University in Brno, Czech Republic. The sample of students consisted of 60 respondents before using Kabada tool, specifically 41 students from Czech Republic, 1 student from Slovakia, Germany, China, Zambia, Italy, Latvia, 2 students from Zimbabwe, Ghana, Israel, 3 students from Bosnia and Herzegovina, 4 from Spain. As for gender, 26 students were female students and 34 males. Most students were from age group 18-21years (32 students), followed by 18 students aged 22-25 and 10 students aged 26 or older. Most students (51) were undergraduate (bachelors’ level) and 9 were 9 master students. The fields of studies were the following: Business management, administration or related field (2 students), Life science (1 student), Education (1 student), Engineering (25 students), Economics, finance (6 students), Natural sciences, mathematics, information technologies (25 students).
4. Discussion
Based on the definitions given in the theoretical background, it can be summarized that sustainable development is a complex set of principles that allow the use of economic tools and technologies to meet the needs of people while fully respecting environmental limits, while adapting the perceptions of individuals, organizations and their processes. Responsible business is a concept in which companies voluntarily integrate social and environmental considerations into their business operations and stakeholder relations. It is therefore about the overall relationship of a company with all its stakeholders - customers, owner-investors, employees, public authorities, suppliers, competitors, communities, etc. It involves the commitment of the enterprise to develop its economic activities in an efficient and responsible manner towards society and the environment, taking into account the interests of all stakeholders. Each stakeholder influences the competitiveness of the company in its own way. Key approaches to promoting the concept of sustainable development and factors for competitiveness include an emphasis on a process approach, non-financial performance of the company and stability of the sector.
Private forest owners and forest entrepreneurs play an important role in all forms of forest ownership and management regimes, both in Europe and worldwide. The process of creating an entrepreneurial environment (i.e. starting a forestry business) is an important element of the entrepreneurial framework in any activity and in the forestry sector is also a prerequisite for sustainable forest management.
As might be expected, with a few exceptions [
54], it is the business-oriented and timber-producing forest owners who are more likely to manage and harvest their stands. Groups of forest owners whose primary objective is not production but rather recreation (for themselves and family) are unlikely to engage in entrepreneurial activities [
55].
Forest owners who are classified as indifferent or uninterested in entrepreneurial activities can take advantage of the new opportunities offered by this type of instrument. In the case of their lack of involvement in their own forests, it seems unlikely that they will be able to engage directly in entrepreneurial activities, but for others there may be opportunities to use their forests for entrepreneurial activities.
If a broader definition of innovation as novelty for the firm and its owner is used, the innovation activity of small firms whose owners are addressing many new ways would be incomparably higher. A few firms could be identified as based on some innovative technological development, but an important advantage was often compatibility with existing production/processing facilities [
56].
Services have also been found to play a key role in developing and supporting business model innovation and improving existing products and processes [
57]. Innovation has been shown to be more related to scale of operations than ownership structure, which is inevitably due to the huge differences in the size of forest enterprises and all the associated issues of access to technology, knowledge and markets [
58].
According to the available country studies, it seems that entrepreneurship has often not even been a primary topic of interest or emphasis in forestry policy, although it is of great importance in societies in general [
59]. One important influencing factor is certainly the common European labor market and the free movement of labor, as a promising opportunity for expanding the activities of entrepreneurs [
60].
Capturing value for societal actors other than the enterprise itself and for the environment involved creating competitive advantage and additional revenue for key partners. These include, for example, promoting job creation, improving quality of life and consumption choices for users and customers, and reducing social and environmental impacts during production and in the overall product/service life cycle [
56]. However, other studies also suggest the need for innovation (e.g., improved circularity and logistics) and challenging the traditional culture of forestry [
61,
62,
63,
64].
For many forest owners, entrepreneurship is not a problem because they are primarily interested in forest management for personal or environmental reasons. In general, however, the issue of forest entrepreneurship certainly deserves further study. A possibility would be to link future studies to cultural differences and institutional characteristics of small-scale forestry, which usually strongly influence the level of forestry entrepreneurship. Our results show that students consider entrepreneurship to be a socially significant activity and business skills to be important. Although majority of students from our sample had no entrepreneurship training or study course before nor they had any or low experience, almost half of them is neutral or considering to start or participate in entrepreneurship within the next 5 years.
Our respondents were students with non-business background, but they do have general intentions to become entrepreneurs. After Kabada experience, the number of students who intended to become an entrepreneur increased from 60% to 78%. About 73% from our sample could imagine that entrepreneurship could fulfill their life. After Kabada experience it was 79%. Majority of students expressed interest in entrepreneurship. After using Kabada, 76% of students declared from average to strong agreement with the statement „Entrepreneurship interest me“. Their knowledge of entrepreneurship was poor but after introducing KABADA tool, it increased. Using this tool would help students to start business, as they expressed in their answers. We can see positive influence of Kabada tool on understanding of entrepreneurship planning and risk and management.