Green entrepreneurship in challenging times: a quantitative approach for European countries

Abstract

The aim of the study is to deep dive into the potential of green entrepreneurship and its drivers in a time of multiple challenges when green growth seeks to reconcile economic and sustainable development goals. The need for responsible business models has become evident in recent years, and companies that offer green products or services are creative, eco-friendly growth incubators and important economic actors that can change the future of society. We used a logistic regression model for 7326 companies from 36 European countries to identify what influences the decision to go green, including supply and demand factors, measures for resource efficiency and targeted policies. We found that the company's age, its financial performance, the country's level of development, as well as the incentive measures have a significant potential of stimulating green entrepreneurship. Our results highlight the overwhelming importance of financing. Firms in less developed countries face difficulties in developing green products and services, so support programs are needed to build green entrepreneurship in some regions. Many entrepreneurs in less developed countries are highly educated, creative, and innovative, so they can successfully run sustainable business models if the transfer of good practices is accompanied by an infusion of capital.