The role of entrepreneurship in alleviating ESG backlash and advancing sustainability

Eunhye Son and Jungho Suh

Journal of the International Council for Small Business, 2025, vol. 6, issue 4, 666-684

Abstract: Entrepreneurship plays a pivotal role in defusing backlash against environmental, social, and governance (ESG) initiatives and advancing sustainability. This review explores the role of entrepreneurship in mitigating ESG opposition and promoting sustainable development. A systematic review utilizing online databases resulted in a shortlist of 499 articles, of which 62 were selected using the preferred reporting items for systematic reviews and meta-analyses 2020 flowchart. The findings highlight the barriers companies face in adopting ESG practices, such as shareholder returns and company valuation, and describe successful strategies to overcome these obstacles. They also explore how entrepreneurial innovation can transform ESG backlash into opportunities for growth and positive impact. Entrepreneurs can drive systemic change and contribute to a more sustainable and equitable global economy by enhancing transparency, fostering stakeholder trust, and integrating long-term sustainability goals. The review concludes with practical strategies for entrepreneurs to navigate the complexities of ESG integration in the future.

Date: 2025
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DOI: 10.1080/26437015.2024.2427700

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