Generative artificial intelligence in environmental entrepreneurship
Generative artificial intelligence in environmental entrepreneurship - KI

Kirchner-Krath, J., Jakob, E. A., Neumann, T., Schaarschmidt, M., & Morschheuser, B. (2026). Generative artificial intelligence in environmental entrepreneurship: Emerging roles and challenges to achieve a dual mission. Journal of Small Business Management, 1–51. https://doi.org/10.1080/00472778.2026.2656790

Environmentally oriented business models enable environmental entrepreneurs to pursue economic viability while generating positive environmental impact. Generative artificial intelligence  could transform such models through efficiency and innovation, yet it may also undermine their sustainability value through resource demands and social risks.

Five Roles of generative artificial intelligence

Despite this tension, we know little about how environmental entrepreneurs use and perceive generative artificial intelligence concerning their dual mission. Drawing on qualitative data from 128 German environmental entrepreneurs, we combined thematic analysis, hierarchical clustering, and co-occurrence analysis to identify five roles of generative artificial intelligence in environmentally oriented business models:

  1. seldom-used tool,
  2. marketing content producer,
  3. core green activity booster,
  4. assistive sparring partner, and
  5. growth accelerator.

Across these roles, environmental entrepreneurs reported challenges related to technical immaturity, unclear benefits, regulatory uncertainty, biases, and environmental harm, and its missing specialization in dual mission contexts. We develop three propositions on the tensions of generative artificial intelligence for the dual mission of environmentally oriented business models.

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For mission-driven start-ups, generative AI should not be treated as a shortcut to growth. Its value depends on whether it strengthens the venture’s impact logic rather than simply accelerating processes and adding new risks. — Dr. Thomas Neumann, Borderstep Institut

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The authors

Dr. Thomas Neumann is a senior researcher at the Borderstep Institute, where he is responsible for the Sustainable Entrepreneurship research area. As an expert on green startups, he shares his knowledge as a lecturer and reviewer for grant and funding programs. He works at the intersection of entrepreneurship theory and business practice, focusing his research in particular on impact measurement for sustainable startups and sustainable business models.

Janine Kirchner-Krath

Eva Alexandra Jakob

Mario Schaarschmidt

Benedikt Morschheuser

Editor

Journal of Small Business Management 

How to cite

Kirchner-Krath, J., Jakob, E. A., Neumann, T., Schaarschmidt, M., & Morschheuser, B. (2026). Generative artificial intelligence in environmental entrepreneurship: Emerging roles and challenges to achieve a dual mission. Journal of Small Business Management, 1–51. https://doi.org/10.1080/00472778.2026.2656790

Borderstep expertise in the research topic of sustainable business models

Borderstep develops concepts and tools for evaluating and further developing business models with regard to sustainability. The focus is on how companies can create both ecological and economic added value.

The institute researches which strategies and structures make sustainable companies successful – from efficiency gains and circular economy concepts to new usage models. This results in practical tools for evaluating the so-called „double dividend.“ These approaches are tested in real markets in cooperation with universities and companies.

Keywords

Sustainable Business Models • Business Model Transformation • Innovation for Sustainability • Diffusion Pathways • Green & Circular Economy • Regenerative Economics • Generative AI • Artificial Intelligence

  • Dr. Thomas Neumann
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