Leveraging unique resources and capabilities to address ESG challenges: a qualitative study of high-growth Italian start-ups

Purpose This study aims to investigate whether and how high-growth start-ups led by young Italian entrepreneurs are using their unique resources and capabilities – such as innovative business models, technological advancements and entrepreneurial drive – to address key environmental, social and governance (ESG) challenges. Design/methodology/approach Adopting a qualitative approach and grounded in resource-based view theory, the study analyses data from 42 in-depth interviews with founders and co-founders of high-growth start-ups operating in the Italian context. Findings The findings reveal that 85% of the young Italian entrepreneurs interviewed are leveraging their unique resources and organisational capabilities, including adaptability, sustainability-oriented innovation and stakeholder engagement, to tackle ESG challenges effectively. Specifically, start-ups are innovating in areas such as renewable energy adoption, inclusive employment practices and governance transparency. Practical implications Ad hoc policies can play an important role in creating supportive environments that encourage start-ups to innovate sustainably and align their operations with ESG principles. For entrepreneurs, this study provides a roadmap for incorporating sustainability into their business models, emphasising ESG’s role in achieving societal and environmental impact alongside economic growth. Social implications High-growth start-ups are shown to play a transformative role in addressing critical social and environmental challenges. By prioritising ESG factors, these organisations not only contribute to environmental conservation and social equity but also set benchmarks for sustainable corporate practices, driving broader social change. Originality/value This study uniquely explores the intersection of entrepreneurship and sustainability within high-growth Italian start-ups, shedding light on how young entrepreneurs address ESG challenges – an area largely underexplored in current literature.