Determinants of performance in Swiss environmental and energy startups
Creators: name: Gerber, Patrizia
Publisher: name: ZHAW Zürcher Hochschule für Angewandte Wissenschaften
Year: 2023
Subjects: 658.1: Organisation und Finanzen

description: Startups play a central role in finding innovative solutions to combat the climate crisis. However, the problem is that startups usually do not remain successful in the long-term. Therefore, researchers often measure the performance to identify what makes startups successful. However, studies specifically focusing on environmental and energy startups are neglected.
Consequently, this master thesis addresses the research question of which determinants favor the performance of Swiss environmental and energy startups. The study is based on the resource-based view theory. Accordingly, the research scope is limited to the internal perspective. Specifically, the following business areas are analysed: financial means & investments, entrepreneurial & founder team characteristics, networks & partnerships, technology levels & intellectual property rights.
Based on these categories, a conceptual model is developed in which the individual determinants are assigned. To answer the research question, a quantitative survey was conducted. The questionnaire was addressed to registered environmental and energy startups from the database of the Innovation Monitor.
Within the study with n=117 startups, it was possible to demonstrate, that the total capital raised by a startup supports growth in employees. However, large investments into the startup lead to a higher probability of not being profitable and not reaching market readiness. Furthermore, a small investment in R&D is considered as a successful predictor of performance. In addition, funding from employees via salary shares, family and friends, general public and business angels support in relation to growth. Similarly, corporate and independent venture capitalist and governmental institutions contribute to growth, but they appear not to be the most suitable source of founding regarding immediate profitability. Moreover, startups founded by men only or mixed gender groups contribute to growth. Contrarily, startups founded by women only seem to run a startup more profitable.
Likewise, an advanced education level of the founder team support employee growth but shows negative effects regarding profitability. In addition, no particular experience in the sector of the startup is needed to achieve market readiness, but experience in sales, marketing, and communication is valuable. Additionally, alliance partnerships are crucial for startup performance. Particularly, with customers and companies in the same sector.
Furthermore, support by a technology fund, through an award without money or through an accelerator programme contribute positively to growth in employees. Lastly, while tech-driven startups support employee growth, low/no tech startups are more successful regarding reaching the growth phase or achieving market readiness.
In conclusion, the key outcomes that startups should strive for are small investments in R&D, team diversity, experience in marketing, sales and communication, and partnerships with customers and companies form the same sector. Further research could deepen these findings through interviews and develop a catalogue of specific recommendations for best practices to promote impact startups.