Abstract

Purpose

India has acquired global leadership in renewable energy (RE) deployment because of its commitment to achieve 175 GW of installed capacity by 2022. Entrepreneurship driven by innovation and policy push is essential for energy sector transition. Despite policy focus on the diffusion of RE technology, there are several challenges that plague innovation and RE entrepreneurship development in Gujarat, India. Hence, the purpose of this study is to apply an empirical approach to identify major challenges faced by RE entrepreneurs operating in Gujarat.

Design/methodology/approach

An empirical correlational analysis has been taken up to explore individual- and firm-level characteristics of 54 RE entrepreneurs in Gujarat across six districts. Moreover, challenges faced by them related to policy and market have been investigated. Gujarat has been selected as the study area, as it has an installed capacity of 11,000 MW and houses around 11% of the total RE potential of the country.

Findings

Major challenges faced by RE entrepreneurs in Gujarat comprise of financial risks, market incumbency, low profitability, uncertainty of demand and lack of skilled labour.

Practical implications

This study offers an empirical grounding to policymakers for fostering an ecosystem of entrepreneurship and innovation specific to RE sector in India and other developing nations.

Originality/value

This study is unique, as previous studies on sustainability-driven entrepreneurship are majorly theoretical and lack empirical foundations. Moreover, there are even lesser quantitative studies exploring challenges to RE entrepreneurship specific to India.