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Entrepreneurship and Sustainability: Analyzing the impact of Green Startups on Economic Development

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  • Sharma, Siddharth Nayan
  • Subba, Raju

Abstract

The rise of green startups transformed the role of entrepreneurship by integrating sustainability into business models, fostering economic growth while addressing urgent ecological concerns. This review explores the role of green startups in economic development, analyzing their contributions to job creation, technological innovation, and market transformation. By applying eco-friendly technologies, circular economy principles, and sustainable resource management, these ventures have emerged as key drivers of a low-carbon economy. The study highlights how green entrepreneurship aligns with global sustainability goals, emphasizing the role of policy frameworks, impact investment, and consumer preferences in shaping the success of these businesses. Furthermore, it examines the challenges faced by green startups, including funding constraints, market competition, and regulatory barriers, while discussing strategies to enhance their scalability and long-term profitability. Drawing on recent empirical studies and global case analyses, this review provides insights into how green startups can serve as catalysts for sustainable economic resilience.

Suggested Citation

  • Sharma, Siddharth Nayan & Subba, Raju, 2025. "Entrepreneurship and Sustainability: Analyzing the impact of Green Startups on Economic Development," Innovation and Green Development, Elsevier, vol. 4(4).
    • Handle: RePEc:eee:ingrde:v:4:y:2025:i:4:s2949753125000773
    DOI: 10.1016/j.igd.2025.100280
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