authors
Kamal Krishna and Sanya Bhasin

abstract
Green entrepreneurship is on the rise as a revolutionary strategy to bridge economic innovation with ecological sustainability. Yet, capital access continues to be the pivotal obstacle to funding green startups, particularly in their nascent phase. This research undertakes a systematic literature review of thirty peer-reviewed papers released between 2015 and 2025 to investigate the impediments hindering the availability of capital for green businesses. The results identify that green start-ups experience multidimensional financial barriers, such as restricted access to conventional funding sources, risk aversion by investors, and the lack of specific green finance tools. In emerging economies, these are compounded by institutionally weak infrastructure, policy fragmentation, and low investors' awareness of sustainability-driven business models. Although there is increasing interest in green finance instruments—e.g., blended finance, impact investing, crowdfunding, and ESG-linked products—early-stage companies cannot meet the eligibility criteria. Regional differences are also found in the study, where there are stronger green finance ecosystems in developed economies than those in developing ones. The study highlights a need for coordination at the ecosystem level between financial systems, policymakers, and entrepreneurial ecosystems. Finally, this paper underlines the need for developing inclusive, context-driven, and innovation-fueled financial channels to promote the long-term sustainability and scalability of green entrepreneurship.