Over recent years aspects of sustainability have claimed a central role in many countries. As a result research for sustainability has become an important driver for innovation. This paper describes developing a model that supports SMEs in integrating sustainability in their business and innovation processes.

In general innovation and entrepreneurship are important in the realm of national economies because they hold the key to the continuity and growth of companies and economic growth within a country. National governments are spending vast sums of money to enable and improve innovation management and entrepreneurial behaviour within organizations. This is also the case in The Netherlands. Partnerships involving universities (education), companies (preferably SMEs) and industrial associations (business) and representatives from governmental organizations (community) are stimulated and should be geared towards: the development of sustainable networks, a contribution to regional economic growth within sectors, the development of learning communities in which best practices are shared, knowledge circulates and knowledge is created through applied research and last but not least sustainable relations are developed between universities and the business community.

Within the centre for innovation and entrepreneurship at our university we have taken the initiative to develop an innovation programme for entrepreneurs in the construction industry to help them integrate sustainability in their business processes, while simultaneously professionalizing students and teachers. Sustainability and concern for the environment are two of the main reasons for entrepreneurs to look for opportunities to innovate. Policy measures are aimed at reduction of CO2 emission, waste management and alternative use of energy sources and materials. In line with these measures companies are urged to integrate sustainability in their business processes and search for innovative sustainable solutions.

This paper describes the experiences with a number of SMEs in the construction industry and the barriers entrepreneurs encounter on the road towards sustainability. We focus on the role of the entrepreneur in the process of sustainable innovation and development. We conducted exploratory research and through an organisational analysis and in-depth interviews with the owners/managers of the companies insight was gained in innovation processes towards sustainable development. Conclusions show that one of the main bottlenecks is the dilemma posed by the need for profit for the continuity of a company, while taking into account people and planet. The dilemmas of innovation are described as issues that need to be addressed and which influence the innovative capacity of companies and organizations. This paper deals with the underlying factors related to the dilemma between sustainability and growth/profit.