Learning to start a new business with values: the challenge of sustainable entrepreneurship in university teaching

Purpose This study aims to present a teaching methodology that integrates sustainability and the Sustainable Development Goals (SDGs) into entrepreneurship education to foster the development of sustainable business models (SBMs) through challenge-based learning (CBL) in higher education. Design/methodology/approach The methodology was implemented over five years at the University of Valencia and the University of Turku, combining CBL with a proprietary framework for designing, testing and scaling SBMs. A systematic literature review (2003–2024) was conducted to support the approach. Findings Students demonstrated improved understanding of sustainability and SDGs and produced higher quality business plans using sustainability-oriented tools. The methodology enhanced motivation and entrepreneurial competencies and fostered skills that may contribute to employability, while also strengthening collaboration between academia and local industry. Research limitations/implications The methodology was tested on final-year business administration students in an entrepreneurship course, which may limit generalizability. Students initially struggled with sustainability tools because of prior exposure to traditional business models. Improvements in entrepreneurial skills, employability and SBM design were measured through a year-long group project based on real-world challenges. Practical implications The approach improves students’ entrepreneurial skills, employability and ability to design SBMs using real-world challenges and tools. Social implications The approach promotes socially responsible entrepreneurship aligned with the SDGs. Industry engagement was facilitated through the European Center for Innovative Enterprises, which participated in project feedback sessions. Originality/value This study offers a structured, replicable model for sustainable entrepreneurship education, incorporating tools such as the Triple Layered Business Model Canvas, the Common Good Matrix and the Sustainable Lean Startup. It addresses a gap in entrepreneurship education by embedding sustainability as a core element.