Entrepreneurial Challenges: Evidences from the Renewable Energy Sector in Gujarat, India

Abstract

Renewable energy transition is one of the major focal point of the Sustainable Development Goals (SDGs). In this context, the Government of India has taken up an ambitious target of achieving 40 percent of its total energy generation through renewable energy sources. Entrepreneurship driven by environmental concerns serve as engines to this energy sector transition. However, despite policy focus on RE technology adoption and dissemination, there are several challenges at individual level, market level and policy level that impede growth of innovation and entrepreneurship in the RE sector of India. this study hence takes up an empirical approach to explore major challenges faced by RE entrepreneurs operating in Gujarat, which houses around 11 percent of the total RE potential of the country. Major challenges identified by this study include market incumbency, financial challenges due to lack of and risk averseness of formal funding sources, and non- recovery of financial dues. As the RE sector is still in its emergent stage uncertainty or lack of demand is also a challenge faced by majority of the RE businesses. Moreover, inadequate training of entrepreneurs and technical personnel also pose challenges to the development of entrepreneurship in this sector.