IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

What is challenging renewable energy entrepreneurs in developing countries?

Listed author(s):
  • Gabriel, Cle-Anne
Registered author(s):

    This paper cumulates the findings from a review of the challenges faced by renewable energy entrepreneurs in developing countries. To date, research that could facilitate the success of renewable energy entrepreneurs in the world׳s developing regions has been fragmented across two main bodies of literature – management (specifically, entrepreneurship) and renewable energy. By conducting a qualitative review of the extant literature, I propose that the findings from both bodies of research may be distilled to six (6) key challenges: inadequate access to institutional finance; the price of renewable energy technologies (RETs); the lack of skilled labour; underdeveloped physical infrastructure and logistics; power/dominance of incumbents; inadequate government or policy support. Through this research, I not only advance a unified conceptualisation of the challenges faced by renewable energy entrepreneurs in developing countries, but also highlight a number of the revealed opportunities for future research.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032116302349
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Elsevier in its journal Renewable and Sustainable Energy Reviews.

    Volume (Year): 64 (2016)
    Issue (Month): C ()
    Pages: 362-371

    as
    in new window

    Handle: RePEc:eee:rensus:v:64:y:2016:i:c:p:362-371
    DOI: 10.1016/j.rser.2016.06.025
    Contact details of provider: Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description

    Order Information: Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic
    Web: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as
    in new window


    1. Paul Reynolds & Niels Bosma & Erkko Autio & Steve Hunt & Natalie De Bono & Isabel Servais & Paloma Lopez-Garcia & Nancy Chin, 2005. "Global Entrepreneurship Monitor: Data Collection Design and Implementation 1998–2003," Small Business Economics, Springer, vol. 24(3), pages 205-231, February.
    2. Martinot, E. & Cabraal, A. & Mathur, S., 2001. "World Bank/GEF solar home system projects: experiences and lessons learned 1993-2000," Renewable and Sustainable Energy Reviews, Elsevier, vol. 5(1), pages 39-57, March.
    3. Harry P Bowen & Dirk De Clercq, 2008. "Institutional context and the allocation of entrepreneurial effort," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(4), pages 768-768, June.
    4. Balachandra, P. & Kristle Nathan, Hippu Salk & Reddy, B. Sudhakara, 2010. "Commercialization of sustainable energy technologies," Renewable Energy, Elsevier, vol. 35(8), pages 1842-1851.
    5. Richter, Mario, 2012. "Utilities’ business models for renewable energy: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(5), pages 2483-2493.
    6. Negro, Simona O. & Alkemade, Floortje & Hekkert, Marko P., 2012. "Why does renewable energy diffuse so slowly? A review of innovation system problems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 3836-3846.
    7. Meijer, Ineke S.M. & Hekkert, Marko P. & Koppenjan, Joop F.M., 2007. "The influence of perceived uncertainty on entrepreneurial action in emerging renewable energy technology; biomass gasification projects in the Netherlands," Energy Policy, Elsevier, vol. 35(11), pages 5836-5854, November.
    8. Loock, Moritz, 2012. "Going beyond best technology and lowest price: on renewable energy investors’ preference for service-driven business models," Energy Policy, Elsevier, vol. 40(C), pages 21-27.
    9. Baumol, William J., 1996. "Entrepreneurship: Productive, unproductive, and destructive," Journal of Business Venturing, Elsevier, vol. 11(1), pages 3-22, January.
    10. William J. Baumol & Melissa A. Schilling & Edward N. Wolff, 2009. "The Superstar Inventors and Entrepreneurs: How Were They Educated?," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(3), pages 711-728, September.
    11. William J. Baumol, 2004. "Entrepreneurial Enterprises, Large Established Firms and Other Components of the Free-Market Growth Machine," Small Business Economics, Springer, vol. 23(1), pages 9-21, August.
    12. Hansen, Ulrich Elmer & Pedersen, Mathilde Brix & Nygaard, Ivan, 2015. "Review of solar PV policies, interventions and diffusion in East Africa," Renewable and Sustainable Energy Reviews, Elsevier, vol. 46(C), pages 236-248.
    13. Milo Bianchi, 2010. "Credit constraints, entrepreneurial talent, and economic development," Small Business Economics, Springer, vol. 34(1), pages 93-104, January.
    14. Emodi, Nnaemeka Vincent & Boo, Kyung-Jin, 2015. "Sustainable energy development in Nigeria: Current status and policy options," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 356-381.
    15. Abdmouleh, Zeineb & Alammari, Rashid A.M. & Gastli, Adel, 2015. "Review of policies encouraging renewable energy integration & best practices," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 249-262.
    16. Herrera-Echeverri, Hernán & Haar, Jerry & Estévez-Bretón, Juan Benavides, 2014. "Foreign direct investment, institutional quality, economic freedom and entrepreneurship in emerging markets," Journal of Business Research, Elsevier, vol. 67(9), pages 1921-1932.
    17. James A. Brander & Edward Egan & Thomas F. Hellmann, 2010. "Government Sponsored versus Private Venture Capital: Canadian Evidence," NBER Chapters,in: International Differences in Entrepreneurship, pages 275-320 National Bureau of Economic Research, Inc.
    18. Marc Gruber & Ian C. MacMillan & James D. Thompson, 2008. "Look Before You Leap: Market Opportunity Identification in Emerging Technology Firms," Management Science, INFORMS, vol. 54(9), pages 1652-1665, September.
    19. Wustenhagen, Rolf & Wolsink, Maarten & Burer, Mary Jean, 2007. "Social acceptance of renewable energy innovation: An introduction to the concept," Energy Policy, Elsevier, vol. 35(5), pages 2683-2691, May.
    20. Silvia Ardagna & Annamaria Lusardi, 2010. "Heterogeneity in the Effect of Regulation on Entrepreneurship and Entry Size," Journal of the European Economic Association, MIT Press, vol. 8(2-3), pages 594-605, 04-05.
    21. Grace Kim, 2006. "Do Equally Owned Small Businesses Have Equal Access to Credit?," Small Business Economics, Springer, vol. 27(4), pages 369-386, December.
    22. Simon Parker, 2000. "Saving to Overcome Borrowing Constraints: Implications for Small Business Entry and Exit," Small Business Economics, Springer, vol. 15(3), pages 223-232, November.
    23. Budde Christensen, Thomas & Wells, Peter & Cipcigan, Liana, 2012. "Can innovative business models overcome resistance to electric vehicles? Better Place and battery electric cars in Denmark," Energy Policy, Elsevier, vol. 48(C), pages 498-505.
    24. Shrimali, Gireesh & Tirumalachetty, Sumala, 2013. "Renewable energy certificate markets in India—A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 702-716.
    25. Grande, Genice & Islas, Jorge & Rios, Mario, 2015. "Technical and economic analysis of Domestic High Consumption Tariff niche market for photovoltaic systems in the Mexican household sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 48(C), pages 738-748.
    26. Dinica, Valentina, 2008. "Initiating a sustained diffusion of wind power: The role of public-private partnerships in Spain," Energy Policy, Elsevier, vol. 36(9), pages 3562-3571, September.
    27. Kamp, Linda M. & Vanheule, Lynn F.I., 2015. "Review of the small wind turbine sector in Kenya: Status and bottlenecks for growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 470-480.
    28. Davidsson, Per & Wiklund, Johan, 1997. "Values, beliefs and regional variations in new firm formation rates," Journal of Economic Psychology, Elsevier, vol. 18(2-3), pages 179-199, April.
    29. Glemarec, Yannick, 2012. "Financing off-grid sustainable energy access for the poor," Energy Policy, Elsevier, vol. 47(S1), pages 87-93.
    30. Brunnschweiler, Christa N., 2010. "Finance for renewable energy: an empirical analysis of developing and transition economies," Environment and Development Economics, Cambridge University Press, vol. 15(03), pages 241-274, June.
    31. Nepal, Rabindra, 2012. "Roles and potentials of renewable energy in less-developed economies: The case of Nepal," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(4), pages 2200-2206.
    32. John Child, 2005. "The Dynamic Between Firms' Environmental Strategies and Institutional Constraints in Emerging Economies: Evidence from China and Taiwan," Journal of Management Studies, Wiley Blackwell, vol. 42(1), pages 95-125, January.
    33. Aslani, Alireza & Mohaghar, Ali, 2013. "Business structure in renewable energy industry: Key areas," Renewable and Sustainable Energy Reviews, Elsevier, vol. 27(C), pages 569-575.
    34. Allan, Grant & Eromenko, Igor & Gilmartin, Michelle & Kockar, Ivana & McGregor, Peter, 2015. "The economics of distributed energy generation: A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 543-556.
    35. Chaohong Zhou & Arjen van Witteloostuijn, 2010. "Institutional constraints and ecological processes: Evolution of foreign-invested enterprises in the Chinese construction industry, 1993–2006," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(3), pages 539-556, April.
    36. William Gboney, 2009. "Policy and regulatory framework for renewable energy and energy efficiency development in Ghana," Climate Policy, Taylor & Francis Journals, vol. 9(5), pages 508-516, September.
    37. Liao, Ching-Hui & Ou, Hsin-Hung & Lo, Shang-Lien & Chiueh, Pei-Te & Yu, Yue-Hwa, 2011. "A challenging approach for renewable energy market development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(1), pages 787-793, January.
    38. Martinot, Eric, 2001. "Renewable energy investment by the World Bank," Energy Policy, Elsevier, vol. 29(9), pages 689-699, July.
    39. Zyadin, Anas & Halder, Pradipta & Kähkönen, Tanja & Puhakka, Antero, 2014. "Challenges to renewable energy: A bulletin of perceptions from international academic arena," Renewable Energy, Elsevier, vol. 69(C), pages 82-88.
    40. Reddy, Sudhakar & Painuly, J.P, 2004. "Diffusion of renewable energy technologies—barriers and stakeholders’ perspectives," Renewable Energy, Elsevier, vol. 29(9), pages 1431-1447.
    41. Reddy, B. Sudhakara & Balachandra, P. & Nathan, Hippu Salk Kristle, 2009. "Universalization of access to modern energy services in Indian households--Economic and policy analysis," Energy Policy, Elsevier, vol. 37(11), pages 4645-4657, November.
    42. Klessmann, Corinna & Held, Anne & Rathmann, Max & Ragwitz, Mario, 2011. "Status and perspectives of renewable energy policy and deployment in the European Union—What is needed to reach the 2020 targets?," Energy Policy, Elsevier, vol. 39(12), pages 7637-7657.
    43. Smallbone, David & Welter, Friederike, 2001. "The Distinctiveness of Entrepreneurship in Transition Economies," Small Business Economics, Springer, vol. 16(4), pages 249-262, June.
    44. Sendhil Mullainathan & Philipp Schnabl, 2010. "Does Less Market Entry Regulation Generate More Entrepreneurs? Evidence from a Regulatory Reform in Peru," NBER Chapters,in: International Differences in Entrepreneurship, pages 159-177 National Bureau of Economic Research, Inc.
    45. Lalic, Danijela & Popovski, Kiril & Gecevska, Valentina & Vasilevska, Sanja Popovska & Tesic, Zdravko, 2011. "Analysis of the opportunities and challenges for renewable energy market in the Western Balkan countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(6), pages 3187-3195, August.
    46. Okkonen, Lasse & Suhonen, Niko, 2010. "Business models of heat entrepreneurship in Finland," Energy Policy, Elsevier, vol. 38(7), pages 3443-3452, July.
    47. Benson, Christopher L. & Magee, Christopher L., 2014. "On improvement rates for renewable energy technologies: Solar PV, wind turbines, capacitors, and batteries," Renewable Energy, Elsevier, vol. 68(C), pages 745-751.
    48. Wüstenhagen, Rolf & Menichetti, Emanuela, 2012. "Strategic choices for renewable energy investment: Conceptual framework and opportunities for further research," Energy Policy, Elsevier, vol. 40(C), pages 1-10.
    49. Mohammed, Y.S. & Mustafa, M.W. & Bashir, N., 2013. "Status of renewable energy consumption and developmental challenges in Sub-Sahara Africa," Renewable and Sustainable Energy Reviews, Elsevier, vol. 27(C), pages 453-463.
    50. Rady, Hussein M., 1992. "Renewable energy in rural areas of developing countries : Some recommendations for a sustainable strategy," Energy Policy, Elsevier, vol. 20(6), pages 581-588, June.
    51. Carter, Nancy M. & Gartner, William B. & Reynolds, Paul D., 1996. "Exploring start-up event sequences," Journal of Business Venturing, Elsevier, vol. 11(3), pages 151-166, May.
    52. Mahama, Amadu, 2012. "2012 international year for sustainable energy for all: African Frontrunnership in rural electrification," Energy Policy, Elsevier, vol. 48(C), pages 76-82.
    53. Foxon, T.J. & Pearson, P.J.G., 2007. "Towards improved policy processes for promoting innovation in renewable electricity technologies in the UK," Energy Policy, Elsevier, vol. 35(3), pages 1539-1550, March.
    54. Mani, Swaminathan & Dhingra, Tarun, 2012. "Diffusion of innovation model of consumer behaviour – Ideas to accelerate adoption of renewable energy sources by consumer communities in India," Renewable Energy, Elsevier, vol. 39(1), pages 162-165.
    55. Pacheco, Desirée F. & Dean, Thomas J. & Payne, David S., 2010. "Escaping the green prison: Entrepreneurship and the creation of opportunities for sustainable development," Journal of Business Venturing, Elsevier, vol. 25(5), pages 464-480, September.
    56. repec:dau:papers:123456789/5381 is not listed on IDEAS
    57. Richter, Mario, 2013. "Business model innovation for sustainable energy: German utilities and renewable energy," Energy Policy, Elsevier, vol. 62(C), pages 1226-1237.
    58. Reddy, B. Sudhakara, 2015. "Access to modern energy services: An economic and policy framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 198-212.
    59. Mair, Johanna & Marti, Ignasi, 2009. "Entrepreneurship in and around institutional voids: A case study from Bangladesh," Journal of Business Venturing, Elsevier, vol. 24(5), pages 419-435, September.
    60. Ulrich Dewald & Bernhard Truffer, 2011. "Market Formation in Technological Innovation Systems—Diffusion of Photovoltaic Applications in Germany," Industry and Innovation, Taylor & Francis Journals, vol. 18(3), pages 285-300.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:64:y:2016:i:c:p:362-371. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.