Challenges And Prospects Of Eco-Innovation: Green Entrepreneurship As A Pathway To Sustainable Economic Development In Kerala

Abstract

The ecological urge to address the climate change, resource depletion, and environmental degradation through eco-innovation and green entrepreneurship for the sustainable economic development of Kerala, This study examines how green entrepreneurship encompassing renewable energy, sustainable agriculture, eco-tourism, waste management, and green technology initiatives can serve as a pathway to achieving the goal. Eco-innovation in the state is gaining momentum through startups, social enterprises, and community-based initiatives that align with the principles of environmental conservation and inclusive growth. However, entrepreneurs face significant challenges, including inadequate financial support, limited awareness of green technologies, weak institutional frameworks, and the absence of strong policy incentives. Market barriers, high initial investment costs, and limited consumer acceptance further constrain the growth of eco-entrepreneurial ventures. The Government programs promoting sustainability, coupled with rising environmental consciousness among consumers, are gradually opening new markets for eco-friendly products and services. Moreover, Kerala’s diaspora network and digital connectivity offer additional platforms for knowledge sharing, funding, and international collaborations. Universities and research institutions in the state also play a vital role in nurturing eco-innovation by fostering skill development, incubation centres, and industry–academia partnerships. This paper argues that fostering eco-innovation through green entrepreneurship is not only an environmental necessity but also an economic opportunity for Kerala. By addressing financial, policy, and awareness-related gaps, green entrepreneurship can enhance sustainable livelihoods, generate employment, and promote inclusive growth while preserving ecological balance. The study concludes that a multi-stakeholder approach involving government, private sector, civil society, and academia is essential to harness the full potential of eco-innovation. Strengthening green entrepreneurship in Kerala can thus serve as a replicable model for other regions seeking to balance economic development with environmental stewardship.