Business models for model businesses: Lessons from renewable energy entrepreneurs in developing countries

Abstract

Against the background of mounting research suggesting entrepreneurship as a means of increasing the uptake of renewable energy technologies (RETs) in developing countries, this paper presents the findings of an exploratory investigation into the business models used by renewable energy entrepreneurs in such countries. Forty-three entrepreneurs were interviewed in 28 developing countries and secondary information about country and regional conditions was analysed. We chose the Business Model Canvas as an analytical tool and the findings shed new light on established renewable energy business types. Three different types of businesses were identified – Consultants, Distributors, and Integrators; yet, there is also some overlap between these types. These business types appeared to parallel the life cycle progression of the business, but this requires further research. A key component of the study was to assess whether the types of businesses were related to country-level conditions to assess the impact of regional differences. These comparisons revealed consistencies between country-level characteristics and the entrepreneurs’ choice of business model. Conclusions suggest that different regions may support certain business models more than others due to differing levels of government interest in renewables, governance and policy support and the relative ease of doing business.