This study explores how early-stage sustainable entrepreneurs interpret and navigate trade-offs between financial imperatives and ESG commitments, and how these moments of choice catalyse entrepreneurial learning. Drawing on a mixed-method approach, the research introduces “decision episodes” as critical moments that trigger reflection, identity strain, and strategic action. Based on six life-history interviews with startup founders in the fashion industry, the qualitative phase identifies recurring tensions that structure the fuzzy-set Qualitative Comparative Analysis (fsQCA) of 340 sustainable fashion crowdfunding campaigns, which provide the empirical setting for observing patterns of entrepreneurial sustainability. Findings show that learning is triggered by moral tension and internal dilemmas that expose incoherence between identity and strategy. Circularity emerges as essential to give governance operational force and strategic direction; without credible circular practices, even principled governance fails to generate legitimacy or traction. The study develops a predictive taxonomy of founder types by aligning moral-symbolic ESG framings with operational choices. It contributes to theory by linking entrepreneurial learning to ESG governance through the lens of emancipation and liminality, using crowdfunding as the empirical arena in which this learning becomes observable, and by offering practical insights for ecosystem actors seeking to support value-driven ventures.
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