Learning perspective on sustainable entrepreneurship in a regional context Sylvia M onica Perez Nu~ nez CETYS Universidad, Baja California, Mexico, and Martina Musteen Fowler College of Business, San Diego State University, San Diego, California, USA Abstract Purpose – The aim of this study is to examine the role of learning in the opportunity discovery, opportunity exploitation and local embeddedness of sustainable ventures in an emerging economy. Design/methodology/approach – We use a partially grounded approach to analyze three case of successful sustainable ventures in the Cali Baja gastro industry. Findings – We find that sustainable entrepreneurs possess general knowledge of natural and communal environment along with compassion for the environment. However, it is the acquisition of a specific business- related knowledge that is the trigger for the formation of the first-person opportunity belief (i.e. confidence in the ability to exploit the sustainable business opportunity personally). Our analysis of also reveals several unique learning processes associated with opportunity exploitation and local embeddedness with a special focus on tradeoffs and compromises that are required given the tension between the sometimes conflicting goals of sustainable enterprises. Originality/value – Our study adds to the literature on sustainable entrepreneurship by investigating the complex interplay between personal and contextual factors that unfolds over time as entrepreneurs conceive and then exploit a viable business opportunity that simultaneously addresses environmental and social goals. Keywords Learning, Local embeddedness, Sustainable entrepreneurship, Gastronomic industry Paper type Research paper Introduction Given the increasingly grim outlook of the state of the environment (EPA, 2018), the fast- growing population coupled with vast inequalities in standards of living around the globe, sustainability has been at the forefront of politics and public debate. While initially taking roots in fields such as geography and environmental sciences, sustainability has begun to capture the attention also in the area of entrepreneurship. This is not surprising since, according to a number of thought leaders (Hart, 2010; Schwab, 2018), business and business innovations must play an increasingly active role in bringing about positive changes toward more fair global economic development and preservation of vibrant ecosystems. Traditionally, researchers have considered the impact of economic and social environmental factors on the identification and pursuit of entrepreneurial opportunities; however, the consequences of such activities on the natural (biophysical) environment have been largely ignored (Hart, 1995). This has been changing as more mainstream entrepreneurship journals have published studies that investigate venturing that specifically addresses both environmental and social goals while being financially viable (DiVito and Bohnsack, 2017; Mu~ noz and Dimov, 2015). Indeed, a recent review and bibliometric analyses of sustainable entrepreneurship as a distinct subdomain of entrepreneurship identified close to 300 articles written on this topic and published in 140 different journals (Sarango-Lalangui et al., 2018). While getting traction in the top Sustainable entrepreneurship 365 This research was in part funded by the CETYS Universidad Institutional Research Coordination (grant number 104) and the Charles W. Hostler Institute on World Affairs at San Diego State University. The current issue and full text archive of this journal is available on Emerald Insight at: https://www.emerald.com/insight/1462-6004.htm Received 4 March 2020 Revised 7 April 2020 Accepted 7 April 2020 Journal of Small Business and Enterprise Development Vol. 27 No. 3, 2020 pp. 365-381 © Emerald Publishing Limited 1462-6004 DOI 10.1108/JSBED-03-2020-0071