Future Pathways for Net Zero Emission: Analyzing the Nexus of Entrepreneurship and Ecological Sustainability Development in Developed Economies

Mehmet Levent Erdas, Abdullah Emre Caglar, Emmanuel Uche and Zahoor Ahmed

Business Strategy and the Environment, 2025, vol. 34, issue 5, 5644-5656

Abstract: This study aims to investigate the impact of entrepreneurship and green investments on environmental sustainability within the scope of Sustainable Development Goals for developed economies. The study conducts an in‐depth analysis from 2001 to 2022 and reveals the possible effects of increases and decreases in entrepreneurship. Based on the results of the empirical analysis, an asymmetric relationship between entrepreneurship and environmental sustainability has been determined in the short and long run. Although decreases in entrepreneurial activities cause a reduction in environmental quality, increases in entrepreneurial activities contribute to environmental sustainability. Increases in green investments provide improvements in environmental quality. These results show that entrepreneurial activities and green investments significantly impact environmental sustainability in developed economies. Based on these results, this study recommends that policymakers in developed countries incentivize green investments, foster the growth of sustainable entrepreneurial ventures, and implement policies that assess and enhance the environmental sustainability of entrepreneurial activities.

Date: 2025
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