The Role of Entrepreneurship in Sustainable Economic Development and Job Creation

Abstract

Economic development (ED), job creation (JC), and sustainable development are some of the benefits that have traditionally been associated with entrepreneurship. This study aims to investigate the impact of entrepreneurship on ED, JC, and sustainable development of small businesses, startups, and social enterprises. Data were gathered using a quantitative research method through questionnaires distributed to 250 participants. Variables captured included entrepreneurial engagement and indicators of ED, employment, and sustainable development practices. Data description was done by means of descriptive statistics while the impact of entrepreneurship was measured using regression analysis. The correlation coefficient was used to determine relationships between entrepreneurship engagement and sustainable development practices. The findings indicate the presence of highly positive correlations between entrepreneurship and economic growth (β = 0.42, p < 0.01; r = 0.61, p < 0.001) as well as employment creation (β = 0.38, p < 0.01; r = 0.57, p < 0.001). It has been observed that sustainability practices moderated these correlations (β = 0.35, p < 0.05; r = 0.52, p < 0.01), meaning that those firms that combined efforts in the direction of environment and society attained better economic and employment performance. Thus, it becomes clear that through entrepreneurship, economic, social, and environmental benefits can be generated at the same time. These conclusions will help policymakers, businesspersons, and development organizations to understand how entrepreneurship can create a sustainable entrepreneurial environment. Some limitations are associated with industry specificity and small samples, which means that more research is necessary in the area of entrepreneurship and economic growth.