Stepping towards the Green Transition: Challenges and Opportunities of Estonian Companies

Abstract

Addressing the sustainability crisis requires innovative approaches such as sustainable technological entrepreneurship. The case of Estonia, as an example of a twin (digital and green) transition, is examined. We explored Estonian entrepreneurs’ perceptions of challenges and opportunities related to the green transition. The data were collected via an online survey from 532 Estonian companies, focus groups, and individual semi-structured interviews with 42 experts. Survey data were analyzed using proportional odds logistic regression, and interview data were examined using thematic analysis. Based on the interview findings, the main perceived entrepreneurial opportunities related to green transitions were increasing production efficiency and favoring taxation for green products and services. The main challenges included losing competitive advantage, coping with crises, and the need for long-term planning and significant investments. Survey findings revealed that too much pressure only from politicians and a lack of innovation might increase the likelihood of perceived company cost increases. More pressure from other stakeholders and increased innovation were associated with higher odds of viewing the green transition as an opportunity. This study provides valuable insights into the perceptions of Estonian entrepreneurs regarding the challenges and opportunities of the green transition and contributes to their categorization.