EconPapers    
Economics at your fingertips  
 

Is green the new gold? Venture capital and green entrepreneurship

Boris Mrkajic (), Samuele Murtinu () and Vittoria G. Scalera ()
Additional contact information
Boris Mrkajic: Politecnico di Milano School of Management
Vittoria G. Scalera: University of Amsterdam Business School

Small Business Economics, 2019, vol. 52, issue 4, 929-950

Abstract: Abstract We test whether born-to-be-green represents a signal toward potential venture capital (VC) investors on a sample of Italian, independent, unlisted, high-tech entrepreneurial firms. We employ several identification strategies by controlling for the major potential signals and the alleged selection bias between green and non-green entrepreneurs. We exploit firm-level information about the “active search for VC financing.” Alternatively, we exploit the cross-local community variation in the awareness about environmental issues in an instrumental variable setting. Our results show that neither running a business based on green technologies nor positioning a business in a green sector per se are strongly correlated with the likelihood to get VC. Instead, we find that born-to-be-green can be a reliable signal for investors only when entrepreneurs perform activities based on green technologies/products and position their business in a green sector, at the same time. Further, we present three contingencies that moderate the association between green business propositions and the likelihood to get VC, namely the technical/scientific education of the founder(s), the origin of the firm as academic spin-out, and the presence of corporate shareholders into the venture’s equity. The paper offers relevant managerial implications.

Keywords: Entrepreneurship; Green ventures; Venture capital; Signal; Green technology; Green product; G24; L26; M13; M21; O35; Q55 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s11187-017-9943-x Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:sbusec:v:52:y:2019:i:4:d:10.1007_s11187-017-9943-x

Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/11187/PS2

Access Statistics for this article

Small Business Economics is currently edited by Zoltan J. Acs and David B. Audretsch

More articles in Small Business Economics from Springer
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-11-11
Handle: RePEc:kap:sbusec:v:52:y:2019:i:4:d:10.1007_s11187-017-9943-x