Strengthening Incubator Support for Sustainability Startups A Study in the Lombardy Entrepreneurial Ecosystem

Abstract

SUMMARY Sustainability startups develop innovative solutions to environmental and social problems, making them important contributors to sustainable development. However, they often face challenges when trying to grow and scale their businesses. Their progress depends to large extent on the founding team, but the surrounding entrepreneurial ecosystem and the support structures within are also of critical importance. Incubators are key actors that help startups grow, but limited research has looked at how incubators can adapt their support to the specific needs of sustainability startups. The purpose of this study is to investigate the challenges faced by sustainability startups in the Lombardy entrepreneurial ecosystem, and to examine how incubators can improve their support to better address these challenges. The research is based on a qualitative and exploratory design using an abductive approach. Data were collected through semi-structured interviews with 26 interviewees, including sustainability startup founders, incubator representatives, and other support actors. The findings identify six main types of challenges; financial constraints, a conservative ecosystem and risk aversion, a lack of internal capabilities, market understanding and positioning, market access and adoption, and policy and regulatory barriers. Furthermore, four areas of incubator support are seen as valuable; business and regulatory support, capital access and financial navigation, networking access and exposure, and mentorship. The study also shows that incubator support is most effective when it is tailored to the specific needs of each startup, delivered through close and selective engagement, and backed by incentive models linked to measurable value creation. Finally, the findings shape a framework aimed at strengthening incubator support for sustainability startups, improving the understanding of how these actors work together in the Lombardy entrepreneurial ecosystem.