New evidence on sustainability impact perception across sectors to inform policy

Research leads to results. SnT’s research reveals unexpected insights into the perception of entrepreneurs on their biodiversity impact. The findings can inform policymaking and entrepreneurship to improve the sustainability impact of entrepreneurship.

In a new empirical study, Mirko Hirschmann and co-authors Prof. Christian Fisch and Steffen Farny uncover surprising insights: “Many entrepreneurs in primary sectors — working closely with natural resources, such as agriculture and forestry — perceive their impact on biodiversity as less harmful than how entrepreneurs in industry and services view the impact of their own work”.

Interestingly, this “perception gap” – the difference in how entrepreneurs in the primary sector view their biodiversity impact compared to other entrepreneurs – is less pronounced in countries with a stronger reliance on the primary sector.

The research is based on a survey of around 3,500 entrepreneurs across 28 European countries. “These findings raise key questions,” Hirschmann notes, “about how policymakers can encourage entrepreneurs to collaborate with nature rather than exploit it.” He hopes this work will spur further research into the biodiversity–entrepreneurship nexus and ultimately inform policies that leverage business as a force for conservation.

The weight of strict climate change policies

In a second empirical study, Mirko Hirschmann analysed over 1,400 startups across 32 countries to see how sustainable innovations influence their growth ambitions. Hirschmann’s research finds that ventures with recently introduced sustainable products or processes consistently target higher growth ambitions. However, these ambitions are noticeably lower in countries with stricter climate change regulations.

This study also raises important questions. How can policymakers help startups deal with tougher climate change rules? Hirschmann highlights that bold policies are essential for sustainability. “But it is important to ensure that they don’t unintentionally slow down the startups driving sustainable solutions”, he says.

Results from these two research studies show that to drive biodiversity protection and green innovation, policy frameworks must do two things: Uphold bold environmental goals and actively support the startups leading sustainable change.

The two studies appeared in the “Journal of Business Venturing Insights” and the “Technological Forecasting and Social Change“.