Navigating the Paths of ESG: Entrepreneurship vs. Consulting

Pratiksha More
Nov 20, 2024
5 min read

Updated: Apr 8

Making the Leap: From Big 4 to Your Own Venture

Over the years, while conducting career guidance sessions and mentoring numerous founders, CEOs, and consultants in the ESG field, I often hear the same question: "I’ve worked in a Big 4 firm, and now I feel ready to start my own business. Can I make that leap?"

This is a question I deeply relate to. I’ve been there myself – transitioning from an analyst at Deloitte to starting my own venture, Sustainability 101. Throughout my journey, I've learned a lot about the differences between being an entrepreneur and a consultant in the ESG world.

In this blog, I want to share my experiences so you can make a more informed decision about which path might be right for you. Both options present unique challenges and rewards, and understanding the realities of each can assist you in choosing the right one for your career.

Let's dive in!

Through My Experience

I met Adhil when we were both analysts at Deloitte. Adhil is a mechanical engineer by training. He chose to continue his corporate career in the Big 4 and other firms, specializing in ESG. Meanwhile, I took a different path. I shifted my focus to entrepreneurship and launched Sustainability 101, an ed-tech company aimed at training future ESG consultants.

As an entrepreneur, I wore many hats. I was responsible for hiring, managing the ups and downs of the business, and handling the challenges that come with running a company. This provided me with hands-on experience in business management and allowed me to work on various sustainability projects. My company focuses on enhancing the skills of prospective ESG consultants by providing them with the technical knowledge they need to excel in their roles.

Adhil, on the other hand, remained in the corporate world and assisted big companies with issues related to net-zero and decarbonization. As an ESG expert, his responsibilities include extensive research, project-based models, and expanding his expertise across various industries and sectors like LCA (Life Cycle Assessment) and carbon reduction strategies.

The Differences in Focus

As a business owner, it can be challenging to prioritize becoming a subject matter expert like Adhil.

Adhil is focused on deepening his expertise and managing specific client projects. He dives into areas like decarbonization and ESG strategy, continually improving his qualifications.

His salary has seen growth as he has upgraded his skills and expanded his knowledge in the field. As a consultant, he can dedicate his attention entirely to each project, enhancing his expertise through hands-on, technical work while learning from his team, managers, and mentors.

Adhil’s role in a corporate setting provides him with the support of colleagues and supervisors. He operates within a structured environment. Here, mistakes can be caught before going public, and he enjoys regular breaks, including weekends off and paid leave. Conversely, as a business owner, I have numerous responsibilities, without the same luxury of focusing solely on specific technical expertise.

The Constant Pressure of Entrepreneurship

Entrepreneurship demands attention to various business areas, such as marketing, sales, operations, and customer relations. Every day requires vigilance to keep the business running smoothly, especially in its early stages. The pressure is constant to ensure everything functions well and scales effectively.

While Adhil’s role offers a more stable income and job security, my business is unpredictable. Clients are not fixed, and revenue can fluctuate significantly. The challenges of entrepreneurship include handling mistakes, managing the team, and ensuring the business's survival. I’m responsible for every error, whether they occur within the team or with clients. Yet, the growth opportunities are immense. I've learned everything—from marketing and sales to team management and operations.

Although I may not be a subject matter expert in technical fields, my business acumen has flourished. I have become adept in running day-to-day operations, managing multiple teams, and engaging with clients to drive the company forward. My focus is on growing the business, managing client relationships, and learning from every mistake, ultimately bearing the responsibility for the success and survival of the company.

Which Path Will You Choose?

Entrepreneur (Business Owner): If you thrive on taking risks, managing diverse roles, and love the thrill of building something from nothing, entrepreneurship may be the right fit for you.
Consultant (ESG Expert): If your passion lies in deepening your technical knowledge, solving complex ESG problems, and preferring a structured work environment, consulting could be ideal for you.

Entrepreneur Path:

Pratiksha from Sustainability 101 grew her business from the ground up, managing everything from sales to hiring. She learned valuable business skills while creating a brand in the sustainability space. As a business owner, you develop a broad skill set, including leadership, client relationships, strategic decision-making, and financial management, all while driving sustainability initiatives across industries.

Consultant Path:

Adhil, an ESG expert, thrives in a structured corporate environment, engaging with top-tier clients on decarbonization strategies and expanding his expertise across industries. As an ESG consultant, you gain specialized knowledge, shape impactful sustainability strategies for companies, and play a key role in transforming industries toward greener practices.

Freedom vs. Structure in Your Career

One of the best aspects of entrepreneurship is the ability to choose your clients, decide your travel plans, and determine the project expenses. As a business owner, you have the flexibility to make decisions based on your personal and professional goals.

In contrast, consulting roles do not always offer such freedom. Projects are typically assigned by a manager or higher authority, limiting your ability to select clients. Budgets and expenses are often predefined, leaving little room for negotiation. You’re operating within parameters set by others.

Additionally, an entrepreneur not only has the advantage of choosing clients but also building their brand from the ground up. This involves establishing brand identity, creating marketing materials, and continuously working towards visibility in an already crowded market. It requires significant effort and creativity to stand out and gain recognition.

Conversely, consultants often have their identity shaped by the firm they represent. For example, Adhil garners recognition through the established reputation of the organizations he works for. He does not need to worry about branding or recognition; it is taken care of by his employer. Furthermore, consultants often benefit from resources and materials provided by their firms, which can streamline many processes.