Ex-Post Empirical Assessment of Green Entrepreneurship's Influence on Sustainable Development: Evidence from the Bottom Billion Countries

Abstract

Introduction: The paragraph discusses how Industry 5.0 and rapid technological advancements have reshaped global development trends, highlighting the need for sustainable approaches that integrate economic, social, and environmental goals. Green entrepreneurship (GE) is presented as a vital force for innovation and sustainability, especially in addressing environmental issues and promoting cleaner, more efficient solutions. The role of GE is particularly critical in low-income nations, where poverty, climate change, and lack of infrastructure present major barriers to achieving the Sustainable Development Goals (SDGs). The article emphasizes the importance of customized strategies and data-driven approaches, such as econometric modeling, to assess the impact of GE on sustainable development across different income levels.

Objectives: By emphasising the importance of new businesses' environmental orientation in fostering sustainable growth, this work adds to the body of previous research on econometric entrepreneurship.  This study examines empirically the possible relationships between a nation's percentage of GEA, social development, and economic growth and its rates of environmental deterioration. Research and early data indicate that new eco-friendly firms have a greater positive influence on the economy and society and are less detrimental to the environment than other new businesses.

Methods: The research empirically investigates the effects of GEA rates as a percentage of total entrepreneurial activity on GDP, the modified HDI, and CO2 emissions using OLS regressions.

Results: The result demonstrated a favorable correlation between social and economic development and increased GEA proportions. Further studies revealed that the findings were robust to changes in time lag, economic development levels, and dependent and independent variable measurements. The necessity for further legislative actions to encourage the discovery, development, and utilisation of environmentally friendly business opportunities is justified by the acknowledged importance of GEA in the economy and society.