Bridging the gap between small firms and investors to promote investments for green innovation in developing countries: two cases in Brazil

Green investments can greatly contribute to finance small innovative sustainable businesses, especially in less developed countries (LDCs) where capital is scarce. However, there is a lack of human resources capacity both in the firms and especially in the investor side. Even though there are some practical experiences, too little is understood about how to promote learning and capacity building to spur green innovation through sustainable investments in small enterprises in LDCs. This article analyses the obstacles to make partnerships happen between two small firms and sustainable foreign investors in Brazil. The research points that small entrepreneurs in LDCs struggle to prepare themselves to search for investors, but investors seem to do little to be prepared to meet those firms. The deals between small firms and investors are more likely to occur when investors know the business environment.