Green Entrepreneurship for Business Sustainability: Do Environmental Dynamism and Green Structural Capital Matter?

As environmental challenges rise, businesses increasingly adopt sustainable practices, with green entrepreneurship emerging as a key driver of environmentally responsible innovation and economic growth. This study uses Green Theory to explore the impact of green entrepreneurship (GEN) on business sustainability (BS), focusing on the mediating role of green structural capital (GSC) and the moderating influence of environmental dynamism (ED). Surveying 443 owners and managers of small and medium-sized enterprises (SMEs) in Istanbul and Izmir, Turkey, across various sectors, the research utilized on-site and electronic questionnaires, analysing data with SPSS V.27 and structural equation modelling (SEM). The findings reveal that green entrepreneurship significantly enhances business sustainability and green structural capital, with GSC serving as a critical mediator. However, environmental dynamism negatively affects the GEN-BS relationship, indicating that the positive influence of GEN is stronger under lower uncertainty. This complex interaction underscores the importance of ecological factors in fostering sustainable entrepreneurship. In summary, the study highlights green entrepreneurship and structural capital as essential drivers for SME sustainability in the face of environmental fluctuations.