Zebra ScaleUp -project: Empowering sustainable growth of SMEs

The business environment is changing fast as the uncertainty, volatility, complexity, and ambiguity are making it difficult to look clearly into the future. However, we know that the ecological crisis has an impact on the entire world and every business also in the future. Businesses must now at the latest consider sustainability in all its forms (i.e., ecologic, social, and economic), and the fact that its importance will continue to grow in the future.

According to Nosratabadi et al. (2019), there are also external pressures and motivations from international organizations and non-governmental organizations (NGOs) that encourage the organizations to be thrilled to shift toward sustainability. Thus, the application of sustainable business models is increasingly widespread among different industries and sectors.

This article introduces the Zebra ScaleUp -project, where training and coaching pilots will be implemented on Zebra companies. The unique characteristic of scalable Zebra companies is that, unlike Unicorns who focus on hyper growth, Zebra companies focus on both profitability and sustainability and value stable and ethical growth. (Harnish 2014). The dual focus gives Zebra the opportunity to drive meaningful change, which also promotes a more sustainable business ecosystem.

Evaluating the future business environment

To better evaluate the future, the business environment and the long-term uncertainty, entrepreneurs need to increase both their futures literacy and their sustainability literacy. When analyzing the future world and the future business environment, we need to zoom out of the microenvironment and investigate the macroenvironment.

The critical issue is the impact of the changes in macroeconomic fields i.e. politics, economics, society, technology, and environment, which can be investigated by Aguilar’s (1967) traditional PESTE-analysis. In the case of Zebra companies also so called PESTEV-analysis (Dufva 2022) can be used because it highlights the changes related to prevailing values. When looking into the microenvironment of a company the entrepreneurs should investigate also matters such as competitive landscape and market situation, business model, success factors, customer needs, agile operations, and innovations.

Sustainable growth and scaling of companies

Constantly growing companies are rare in Europe. When the average annual growth of scale-up companies is defined as more than 10 percent per year over three years’ time, about 12 percent of European companies are scale-up companies (OECD 2021). In Finland rapid growth of companies is relatively rare. Although the number of growth companies has increased in this century, their share of all companies remained at 0.2 percent. Only an average of 3 percent of medium-sized companies were growth companies, and on an annual basis the number of them varied between approximately 37 companies and 135 companies. (Simons et al. 2022.)

Organizations grow in stages during their life cycle. Growth can be both linear and non-linear, but the literature deals mostly with fast-growing high-tech new companies. (Cavallo et al. 2019). Startups do not have an official definition, but they generally meet three criteria (Steigertahl & Mauer 2021).

1. Age: they are companies less than ten years old (or, depending on the industry, companies less than 5 years old)
2. Product: they have an innovative product, service or business model
3. Growth intention: they also have the intention to grow their business (increase the number of employees or the market in which they operate)

A startup is just the beginning of a company’s life cycle. If it survives the first 2-3 years and the internal and external conditions are favorable, it should proceed to the growth or scaling phase. (Zajko 2017.) There are four decision-making areas in scaling, each of which the company must succeed in: people, strategy, execution, and finance.

The success and transition phase growth of startups is significantly influenced by the ecosystem in which they are born and operate (Crnogaj and Rus 2023). The application of sustainable business models is increasingly widespread among different industries and sectors (Nosratabadi et al. 2019). Sustainable and social entrepreneurship is thus having profound implications in the economic system: creating new industries, validating new business models, and allocating resources to neglected societal problems (Santos 2012).

Scaling up the Zebra way

The special features of scalable Zebra companies are both responsible growth and economic, social and ecological benefits. According to de Gennaro et al. (2023), especially representatives of the Z generation identify themselves as Zebra entrepreneurs, who are characterized by a purpose in life, self-management, decentralized leadership, decision-making power and empowerment. Young startup entrepreneurs have faced unprecedented challenges, and they must respond to constant change and uncertainty through improvisation and the ability to change.

As businesses face increasing challenges from ecological crises, regulations, and shifting customer values, Zebras leverage foresight, scenario planning, and customer feedback to adapt and to maintain sustainability in a volatile business environment. Zebra companies discover business opportunities that have a positive impact on sustainable development, to ecology, people, and economy.

In a world facing an ecological crisis, the businesses recognize the need for responsible operations within social and environmental boundaries, as inspired by the Raworth’s (2017) doughnut economics model. The doughnut economics model highlights, a theoretical safe space for humanity where we can meet the wellbeing needs of all without overshooting planetary boundaries, but this will require some serious shifts to the way in which demand is shared out across the human population (Raworth 2017). According to Sahan et al. (2022), doughnut economics calls on businesses to demonstrate how they are going to transform so that they will belong in the future – aligned to, and in service of, a world where all people and the living planet thrive.

By incorporating sustainability into their business models, organizations can attain their long-term goals with profits, while minimizing negative externalities (Zopounidisa & Lemonakisc 2024). Sustainable business models require a holistic and comprehensive approach that integrates the three pillars of sustainability: social, environmental, and financial factors. Crucial to the company’s success is a clear vision and a roadmap that outlines steps toward sustainable growth, ensuring their operations align with long-term goals and sustainability measures. The business model is analyzed by considering aspects of sustainability at all levels i.e. how is the business creating value sustainably for the customers

• in a feasible way (how are they implementing their business model),
• in a viable way (how is their product/service valuable and desirable for their customers), and
• in a profitable way (how do they make their business profitable taking into consideration also sustainability).

Scaling up in the Zebra ScaleUp -programme

The Zebra ScaleUp -project’s goal is to support companies with scaling-up challenges and sustainable growth ambitions within the Central Baltic. The participating new SMEs should have an ambition to grow within 5-7 years from the start of their operations. The participants must also have a strong aspiration for becoming a sustainably growing, mission-driven company. The support provided in the project’s programme is tailored to company needs. To facilitate the expansion of operations and the growth, the Zebra ScaleUp -programme also supports the companies’ experience exchange, learning and joint implementation. During the Zebra ScaleUp -programme the companies will focus on the key actions listed below.

The first Zebra ScaleUp -pilot started with the Ecosystem Event organized in October 2024. After which, 20 companies were chosen to join the Bootcamp phase (Oct./24 to the end of Jan/2025). The bootcamp consists of workshops and hands-on working on preparing the roadmap for developing the businesses. After the bootcamp, ten chosen companies will advance to the final phase i.e. One-on-One Training (Feb – May/2025), during which the companies will receive coaching from the project team, experts and mentors. The first Zebra ScaleUp pilot -programme culminates in the Final seminar, where Zebra ScaleUp companies present their finalised growth plans. 

Setting up the objective to grow

To take actions that are aiming for above mentioned targets, a company needs to have a clear vision and an objective of how it is trying to grow its business. This objective should always be aligned with the company mission and strategy so that the value created to the customers is clear. To achieve this, companies must continually upgrade their skills and knowledge, especially in sustainability. Through collaboration with other Zebra SMEs, experts, and investors, the businesses enhance their capacity for innovation, product development, and market expansion.

Once a Zebra company sets clear objectives for growing its business sustainably, it must carefully look at what it already knows and what actions are needed to reach the objectives. To take the plans into action, the company needs to make a realistic roadmap of actions, set up a timeline for these actions and agree on the responsibilities and roles for taking care of the action points. The roadmap needs to include follow-up dates to facilitate learning and moving forward. When creating a roadmap, measurables on how to follow up on the process are important.

Upgrading skills, competencies and knowledge

Often awareness of sustainability is also an issue where we constantly need to update our skills and knowledge. This can be done by collaborating and networking with likeminded people: Zebra SMEs, researchers, investors, mentors and other experts. Learning from each other by listening to different perspectives gives a possibility to broaden views and maybe even plant a seed for new innovations or co-operation possibilities. Through the collaboration and networking ecosystems for Zebra Scaleups are created, which offers experience exchange and learning as the result of joint implementation.

One important aspect in making a change towards sustainable business models is to raise awareness on how to grow the business considering both sustainability and profitability. Through this raised awareness skill companies can facilitate product and service development, develop sustainable business models, expand operations and develop skills on how to scaleup by improved capacity and resources.

Another important issue in raising awareness of sustainable business models is to inspire and motivate companies to investigate new market opportunities to support scaling-up activities. Linked to this aspect is the importance of promoting business development by branding and marketing.

Tailor made Zebra ScaleUp training

The companies participating in the Zebra ScaleUp programme need the ambition to grow, the necessary product development capacities and the target to scale up (by developing business models, hiring new talents, establishing presence outside of the home market or raising investments). The programme consists of two batches of training tailor-made for new companies looking to scale up their business sustainably.

The project offers two training batches consisting of an ecosystem engagement event, a bootcamp, one-on-one training by coaches and mentors and a final seminar. The programme aims for several benefits for the target group companies. These include e.g. product or process development, sustainable branding and marketing, and sustainable business model development. The programme also serves as a forum for entrepreneurs to exchange experiences and for peer learning and networking throughout the Central Baltic area.

A future of balanced growth

Zebra companies symbolise a new wave of sustainable entrepreneurship, focusing on long-term success without compromising environmental and social values. The Zebra Scaleup project plays a crucial role in guiding SMEs through the complexities of growing sustainably, offering a framework that supports both profitability and ethical business practices. As the world continues to face ecological and social challenges, the importance of Zebra companies will only grow, offering a beacon of balanced and sustainable progress for the future.

The megatrends have been showing that since we are living in an ecological crisis also brave disruption is needed to the way that we are doing business (e.g. Sitra 2023). Looking at this aspect within a doughnut economy perspective described by Kate Raworth (2012) we should always be aware of how we operate between social and global boundaries – not overshooting the boundaries in ecology and not undershooting the social boundaries either.

Scaling business sustainably is often linked to a purpose driven mission where the goals for scaling up define also the social and environmental aspects, not only goals for economic growth. This often means innovative business models taking into consideration the whole value chain and how it is taking sustainability into consideration at all levels.

Zebra companies represent a change in thinking towards sustainable and balanced growth. By focusing both on profitability and sustainability, they offer a viable alternative to the hyper-growth model of Unicorns. Our Zebra Scaleup project exemplifies how tailored support can help SMEs overcome scaling challenges, fostering a business environment that values ethical and stable growth. As the ecological crisis continues to impact businesses, the relevance of Zebra companies will only increase, making them a crucial component of a sustainable future.

Picture: Shutterstock