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What besets entrepreneurs in renewable energy sector? – Insights from the Indian state of Gujarat

Stuti Haldar (Indian Institute for Human Settlements, Bangalore, India)
Tulika Tripathi (Centre for Studies in Economics and Planning, Central University of Gujarat, Gandhinagar, India)

International Journal of Energy Sector Management

ISSN: 1750-6220

Article publication date: 7 April 2022

Issue publication date: 23 January 2023




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.


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.


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.


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.



An earlier version was presented at the 14th Biennial Conference on Entrepreneurship, at Entrepreneurship Development Institute of India, Ahmedabad. Authors thank the discussants for their comments that helped us develop this study further for publication.


Haldar, S. and Tripathi, T. (2023), "What besets entrepreneurs in renewable energy sector? – Insights from the Indian state of Gujarat", International Journal of Energy Sector Management, Vol. 17 No. 2, pp. 209-226.



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