The impact of environmental sustainability on willingness to invest in startups: A survey among private investors
Research output: Journal contributions › Journal articles › Research › peer-review
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In: Sustainable Development, 06.11.2024.
Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - The impact of environmental sustainability on willingness to invest in startups
T2 - A survey among private investors
AU - Voß, Lasse
AU - Cordes, Henning
AU - Lueg, Rainer
N1 - Publisher Copyright: © 2024 The Author(s). Sustainable Development published by ERP Environment and John Wiley & Sons Ltd.
PY - 2024/11/6
Y1 - 2024/11/6
N2 - This study investigates the impact of environmental sustainability on willingness to invest (WTI) in startups vs. established companies. Using data from a survey among private investors, we compare measures of WTI and the perceived return–risk ratio (RRR) for both environmentally sustainable and non-environmentally sustainable startups and established companies. The results indicate that environmental sustainability significantly and positively influences WTI for both startups and established companies, with a notably stronger effect for startups. Non-environmental sustainability significantly decreases WTI. Environmental sustainability has a significantly positive impact on the perceived RRR for both startups and established companies, although startups are rewarded more than established companies for environmentally sustainable practices. This highlights that entrepreneurs have a financial incentive to prioritize environmental impact, and the demand for environmental sustainability can provide startups with an advantage in capital raising. This research contributes to the limited literature regarding sustainable entrepreneurship and environmental sustainability's specific impact on WTI.
AB - This study investigates the impact of environmental sustainability on willingness to invest (WTI) in startups vs. established companies. Using data from a survey among private investors, we compare measures of WTI and the perceived return–risk ratio (RRR) for both environmentally sustainable and non-environmentally sustainable startups and established companies. The results indicate that environmental sustainability significantly and positively influences WTI for both startups and established companies, with a notably stronger effect for startups. Non-environmental sustainability significantly decreases WTI. Environmental sustainability has a significantly positive impact on the perceived RRR for both startups and established companies, although startups are rewarded more than established companies for environmentally sustainable practices. This highlights that entrepreneurs have a financial incentive to prioritize environmental impact, and the demand for environmental sustainability can provide startups with an advantage in capital raising. This research contributes to the limited literature regarding sustainable entrepreneurship and environmental sustainability's specific impact on WTI.
KW - CSR
KW - ESG
KW - impact investing
KW - responsible investments
KW - sustainable entrepreneurship
KW - sustainable finance
KW - Management studies
UR - http://www.scopus.com/inward/record.url?scp=85208440493&partnerID=8YFLogxK
UR - https://www.mendeley.com/catalogue/39af2eff-f11e-3c7c-a3ed-c7160b3dfd6c/
U2 - 10.1002/sd.3254
DO - 10.1002/sd.3254
M3 - Journal articles
AN - SCOPUS:85208440493
JO - Sustainable Development
JF - Sustainable Development
SN - 0968-0802
ER -