Background: Among growing concerns about the insufficiency of weak sustainability strategies in business, the concept of sustainability-as-flourishing has emerged as a transformative approach. Tools such as the Flourishing Business Canvas and the Flourishing Startup Method offer systemic frameworks for embedding sustainability, stakeholder engagement, value co-creation and value co-destruction into business model design. 

Problem discussion: Despite increased interest in sustainable business, many enterprises still adopt weak sustainability practices that risk greenwashing and lack a systemic perspective. Even if the concept of sustainability-as-flourishing offers a stronger alternative, little empirical research exists on how entrepreneurs use a flourishing business approach, consisting of FSM and the FBC, to co-create value and mitigate the co-destruction of value. The present study addresses this gap. 

Purpose: This thesis explores how the flourishing business approach influence entrepreneurs in enabling value co-creations and mitigating value co-destruction in their business models and stakeholder relationships. 

Research method: Using a qualitative abductive research approach, semi-structured interviews were conducted with entrepreneurs who participated in Flourishing Startup programs. Through the programs, participants gained theoretical and practical experiences applying the FBC and the FSM, which were later applied in real ventures. Thematic analysis was applied to interpret the data in relation to a conceptual model. 

Empirical findings: The study finds that the flourishing business approach fosters a deepened understanding of systems thinking and stakeholder needs, encourages integration of the entrepreneurs’ personal journey with business vision, and enhances relational value co-creation. The presence of community of flourishing entrepreneurs and collective stakeholder engagement were also found to have influence on the entrepreneurs’ wellbeing and motivation. However, several barriers, such as stakeholder misalignment, implementation challenges, and limited awareness of value co-destruction, hinder the full realisation of flourishing impacts. 

Conclusions: The flourishing business approach has substantial potential to redefine sustainable entrepreneurship through systems thinking and stakeholder co-design. Yet, to translate ideals into impact, continuous support from other flourishing entrepreneurs, collective stakeholder engagements and enhanced awareness of the tensions between value co-creation and co-destruction are essential. 

Future research: Future research should explore closer long-term impact of flourishing businesses approach across different entrepreneurial contexts. The disconnect between theoretical and practical definitions and experiences of value co-destructions is also of value to explore further.