Unveiling the Route to Sustainable Entrepreneurship: A Comprehensive Examination of Sustainable New Ventures Financing Through Systematic Literature Review

Sustainable development, as outlined by the Sustainable Development Goals (SDGs), constitutes a critical agenda for global progress. However, the looming climate challenges impede the realization of these goals. Entrepreneurship emerges as a vital catalyst for economic growth and societal welfare, yet its traditional model faces challenges in the face of environmental degradation and resource scarcity. Sustainable entrepreneurship (SE), rooted in environmental preservation and societal benefit, holds promise in addressing these challenges. This article explores the nexus of financing and SE, recognizing the pivotal role of funding in fostering a sustainable business ecosystem. Drawing upon a comprehensive review of literature and bibliometric analysis conducted between December 2023 and January 2024, utilizing a dataset of 64 articles sourced from the Web of Science (WoS), this study delves into the intricacies of funding sustainable ventures. It scrutinizes the hurdles faced by sustainable entrepreneurs in accessing traditional financing avenues, including risks, market uncertainties and longer return on investment periods. The emergence of alternative financing methods, such as crowdfunding, venture capital (VC) and business angels (BAs), signifies a paradigm shift in funding sustainable ventures. These unconventional channels challenge the notion that sustainability compromises profitability for investors. By synthesizing existing knowledge and identifying research gaps, this review lays a robust groundwork for future investigations in this crucial domain. The systematic structure of this review encompasses the delineation of objectives and methodology, data analysis, insights derived from the study and concluding remarks with recommendations for future research. This article serves as a guide for scholars, practitioners and policymakers navigating the evolving landscape of SE financing, striving towards a greener and more prosperous future.