Systematic Literature Review of Sustainable Finance: Implications for Entrepreneurial Finance through Venture Capitals (VC)

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Rosa Mehrabi


The idea of sustainable development as a whole gave rise to the concept of sustainable finance in recent decades. It illustrates how financial markets address the current and upcoming economic, social, and environmental issues. This study reviews the literature on sustainable finance and how it relates to venture capital and entrepreneurial finance research topics. As part of the research process, a Systematic and methodical assessment and analysis of the literature was carried out.  The results present comprehensive summaries of the main themes and frameworks, as well as the opportunities, challenges, strengths, and weaknesses of the fields. It also highlights the interaction between sustainable finance and venture capital in supporting innovation and sustainability in entrepreneurship.  The main paper's contribution is to identify sustainable finance as a process that operates at multiple levels. It indicates that a shift in the financial paradigm from profit maximization to sustainability facilitation is required to attain sustainable development at the level of private financial markets and sustainable entrepreneurship. According to the findings, venture capital funds are major participants in the private financial sector, supporting entrepreneurial startups and playing a key role in sustainable finance by promoting a culture of innovation, resource efficiency, and sustainability among entrepreneurial ventures. The paper cites critical review as the source of these arguments. Finally, through applying this comprehensive critical analysis, several gaps in the existing literature have been identified and discussed.


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