Work

Mapping the signaling environment between sustainability‐focused entrepreneurship and investment inputs: A topic modeling approach

Year: 2024

Type: article

Abstract: The need for climate action has increased attention to sustainability‐focused entrepreneurship. In this context, entrepreneurial firms play a fundamental role in developing high‐technology solutions for decarbonization but face funding gaps due to the liabilities of newness and smallness. Despite the importance of signaling in entrepreneurship, little is known about what and how to effectively signal to attract investor interest in small ventures that develop sustainable technologies. To address this gap, the present study is anchored in signaling theory and suggests a topic modeling solution to identify signals presented in company self‐descriptions and areas of activity, alongside their investment inputs. Using data extracted from Crunchbase, a corpus of 5099 self‐descriptions of small sustainable technology ventures over a period of 10 years, this study provides novel insights into the signaling environment of sustainability‐focused entrepreneurship. The study's findings have implications for the sustainability ecosystem, namely, start‐ups, small‐ and medium‐sized enterprises, investors, and policymakers.

Source: Business Strategy and the Environment

DOI: 10.1002/bse.3748

Authors: Nan Yang, Dimitrios Dousios, Nikolaos Korfiatis, Konstantinos Chalvatzis

Institutions: University of Warwick, University of East Anglia, University of Exeter

Language: English

Topic: Entrepreneurship Studies and Influences

Subfield: Management of Technology and Innovation

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Climate action

Open Access status: hybrid

Estimated APC paid: $4,270