Start-up scene becomes greener

More and more people are deciding to set up their business in sustainable segments. But they have to overcome a few challenges.

The proportion of green start-ups among all start-ups in Germany has risen and now stands at 30 percent. This was the finding of a study by the Borderstep Institute, which the institute publishes together with the German Startups Association. The so-called "Green Start-up Monitor" is financed and supported by the German Federal Environmental Foundation (DBU).

According to the study, which is being published for the third time this year, there are around 6,000 green start-ups across Germany. According to the study, these are characterized by the fact that they offer environmentally friendly products or services and meet three criteria. Firstly, they must be clearly classified as part of the green economy, have a sustainable focus and also pursue this focus based on key company figures. DBU Secretary-General Alexander Bonde sees great opportunities in sustainable start-ups: "Sustainable digitalization can be a key to solving environmental problems."

In order to take advantage of these opportunities, the often young companies also have to overcome a number of challenges. According to the study, sales, capital procurement and product development are the main problems that sustainable start-up teams have to deal with. They are therefore likely to have to overcome similar hurdles to most start-ups that are not considered sustainable.

Klaus Fichter, Director of the Borderstep Institute and co-author of the study, also sees a positive effect from more green start-ups in the long term: "These innovative and growth-oriented young companies not only deliver convincing products, but also create positive effects for society as a whole," he says. "Green start-ups are therefore characterized by a double dividend," says Fichter.