There is hardly any way around the topic of sustainability for start-ups today. Many young entrepreneurs no longer just want to be fast-growing and successful. They also want to make a contribution to the ecological restructuring of the economy and society. Resource scarcity, rising commodity prices and the ever-increasing climate crisis are also increasingly prompting founders to put sustainability at the top of the agenda when developing their business ideas. Whether organic or regional, plastic-free or unpackaged, circular economy or rental models, the reduction of materials and resources or the consistent use of renewable energies: young entrepreneurs are driving forward the diverse ideas for sustainable products and production processes with particular intensity. Sustainability has become a key driver and central component of start-ups worldwide.
30 percent of start-ups are green
This is also reflected in the figures: The share of so-called green startups in the total number of all new startups in Germany rose to 30 percent in 2021. This is the result of the “Green Startup Monitor (GSM)” study by the Borderstep Institute and the German Startups Association. In Hesse, green startups even account for 32 percent. Companies that want to contribute to ecological sustainability in addition to their economic success are therefore no longer a niche phenomenon.
Sustainability is also playing an increasingly important role in start-ups. Ecological considerations have a significant influence on the development of product ideas and business models. As a rich source of creative and innovative ideas, many sustainable business models aim to satisfy needs in completely new ways and solve problems better. Sustainability is therefore also a good way to prove oneself in saturated markets and set oneself apart from the competition.
Funding for green start-ups often still inadequate
In the GSM study, however, green start-ups in particular often struggle to find suitable financing. For example, 42% of companies stated that they would like venture capital, while 49% saw financing as the biggest challenge for green start-ups alongside sales and product development. The central demand of the study is therefore better support and financing for green start-ups. This would include, for example, the establishment of a ‘sustainability’ funding line in the German start-up funding system and a network of regional “Sustainability Innovation Hubs”. After all, sustainability has long been more than just a nice idea. It is a central building block for securing the future and growth opportunities of young companies!
