Sustainable entrepreneurship development in the renewable energy sector: Insights from Gujarat, India

Abstract

Sustainable development lies at the heart of sustainable entrepreneurship. In the context of this view, the current paper explores the linkages among sustainable development, entrepreneurship, and innovation. Since Gujarat ranks among the five top Indian states in terms of renewable energy (RE) potential, we studied this sector using a case study approach. The study explores factors that affects the shift from conventional to sustainable entrepreneurship. These factors include major opportunities, as well as challenges for RE entrepreneurs. The findings suggest that RE entrepreneurs are driven by a mix of economic, personal commitment for the environment and social concerns. Institutional support in the form of skill development programmes, subsidies and easing entry level barriers to RE serve as opportunities for entrepreneurs. Technological expertise is another enabler for RE entrepreneurship. Major challenges identified in this study include inadequate access to formal and institutional finance, especially for start-ups, bureaucratic obstacles, limited number of government-accredited certification labs, and inconsistency in the Ministry of New and Renewable Energy (MNRE) guidelines. Knowledge barriers in the form of lack of information regarding usage, maintenance and utility of solar technologies are also challenges for this sector. Technological risks related to the adoption of RE technologies also puts them at a cost disadvantage in comparison to conventional technologies.