May 29, 2023

What is climate entrepreneurship?

Having a background in entrepreneurship research, I think of climate entrepreneurship above all as a process in which entrepreneurs envision a future that puts less strain on the earth, make the necessary decisions and set the wind on the ground. Climate entrepreneurs are therefore agents of change in society and the economy, who strive to create innovative and sustainable solutions to the challenges of climate change.

Entrepreneurship is often thought of as an individual-oriented activity. However, it is typical for climate entrepreneurs to think that entrepreneurship is anything but a solo sport. Climate entrepreneurs have the ability to attract and bring together different people and communities to cooperate, and by combining their resources, it is possible to produce solutions that combat climate change.

Solving the challenges related to climate change is, in a broad sense, a joint effort of all of humanity. Every company involved in this effort is a manifestation of people's ability to solve problems, which offers encouragement to those suffering from climate anxiety.

As a result of climate entrepreneurship, new products, services, business models and entire ecosystems are brought to the market, which can be used to combat climate change. For example, sustainable farming techniques, water filtration technology, smart air devices, solutions promoting the energy efficiency of the built environment, tools for intelligent traffic planning or innovations in waste management. That is, concrete ways to reduce carbon dioxide emissions.

Climate entrepreneurship involves risk just like entrepreneurship in general. When creating something new, there is always the possibility that the end result does not meet expectations, wishes and needs. In addition to financial losses, this can mean big disappointments and dents in what people think of the entrepreneur. If we as a society want to achieve our climate goals, we must be able to reduce this risk.

Reducing risks means, for example, trying to keep the regulatory environment of companies predictable and politics in general to promote entrepreneurship. Secondly, that entrepreneurs are supported by at least the same mental and mental security network as employees. And thirdly, that entrepreneurship is talked about encouragingly - and especially not sprinkling bankrupts in the pages of magazines or on social media.

Climate entrepreneurship has received increasing attention in recent years, as more and more entrepreneurs and investors are interested in sustainable development and environmentally friendly solutions. It is possible to hold on to this positive development, as there are great business opportunities associated with climate change measures. However, this requires not only the aforementioned risk reduction, but also taking care of the prerequisites for climate entrepreneurship in terms of both financing and production capacity.

It is therefore essential to build an ecosystem of climate entrepreneurship.

Author: Prof. Iiro Jussila