According to the Global Green Building Council (GGBC), about 40 per cent of India’s workforce are employed by the country’s 42.5 million Small and Medium Enterprises (SMEs). Together they contribute around 30 per cent of the country’s GDP. In recognition of this and the vast commercial potential for start-ups, India is often described as ‘the poster child of emerging markets’. The innovation and entrepreneurial capabilities mushrooming from this ecosystem are driving impact and contributing to the achievement of Sustainable Development Goals (SDGs) in India. ‘Startup India’ and several state government initiatives, also highlight the increased political will to support this culture of entrepreneurship. Importantly, non-complex policies and adequate funding are two crucial factors for start-ups to grow and sustain. Entrepreneurs seeking capital to grow initiatives in the field of sustainable development would endorse this wholeheartedly.
As a major boost to Sustainable Entrepreneurship (SE), globally the quantum of green, social and sustainability instruments in 2020 have steadily risen to US$ 700 billion, which is almost double the amount issued in 2019. In India too, SE investments are gaining steam across a variety of sectors ranging from mobility, renewable energy, waste recycling and others. As a case in point, the World Bank is introducing a $100-million credit guarantee scheme to boost India’s rooftop solar programme. This is expected to benefit micro, small, and medium enterprises significantly. Multiple reports have also shown SE gaining momentum in the Indian financial marketplace; the country secured first place in the Emerging Markets Clean Energy Investment index and is ranked as the second-largest emerging market for green bonds. ‘Green finance’ investments and start-ups have significant potential to contribute to India’s Mission 2070 net-zero aspirations.
However, the lack of benchmark financial rent returns, demand inhibitions and insufficient consumers towards green and sustainable products and services continue to create hesitancy amongst traditional investors. With ‘green’ start-ups gradually looking at IPOs and listings, the potential of entrepreneurial success in this space seems promising. Factors like access to high-quality talent, new models like circular entrepreneurship, innovative marketing strategies and creative approaches to funding will definitely augment investments in this sector. Join us for a conversation with Anita M George, Executive Vice-President and Deputy Head of CDPQ Global, Pratap Raju, Founding Partner of Climate Collective, Ajaita Shah, Founder and CEO of Frontier Markets, Ankit Singhvi, Lead, Cell Business at Ola Electric, Co-Founder and erstwhile CEO of Mozev, and Paula Mariwala, Founding Partner of Aureolis Venture on how start-ups are leading the way in creating innovative and sustainable business models and channelising funds into these sectors.