Degrowth attitudes among entrepreneurs hinder fast venture scaling

Abstract

The degrowth paradigm has gained popularity in the sustainability discourse in recent years. Questioning the absolute decoupling of economic growth from environmental degradation, degrowth proponents suggest downscaling production and consumption to reduce resource extraction and energy consumption. However, this seems to be at odds with conventional wisdom about entrepreneurship. Thus, our research aims to shed light on the implications of the degrowth discourse on entrepreneurship. We answer how degrowth attitudes among (sustainable) entrepreneurs are associated with decision‐making on scaling strategies for their ventures. Differentiating between scaling fast and scaling slow strategies, we show that a degrowth attitude is negatively associated with scaling fast strategies, whether entrepreneurs consider themselves sustainable or not. However, sustainable entrepreneurship is positively associated with scaling slow strategies. Furthermore, we show that the development level of the economy an entrepreneur is active in is an essential factor in the decision‐making on scaling strategies.