Green entrepreneurship as a sustainable business model: key lessons for SMEs

Abstract At the global level, green entrepreneurship has increasingly been positioned as a key innovative mechanism for advancing energy efficiency, promoting resource reuse through circular economy principles and fostering the development of clean technologies. Our study contributes to the knowledge field by examining the extent to which green entrepreneurship functions as a sustainable business model, while also identifying the key opportunities, challenges and different constraints. The main purpose of our analysis is to emphasize the role of the legislative framework in promoting green entrepreneurship and its significance for the economy. The research employs both qualitative and quantitative methods, combining bibliometric and empirical analyses in a complementary manner. In this context, our research also incorporates a bibliographic analysis conducted in accordance with PRISMA guidelines. The data used in this study were obtained from Eurostat, the OECD and the World Bank, covering the 27 European Union Member States over the period 2008–2022. In particular, the findings highlight that government effectiveness, rule of law, foreign direct investment (FDI), SME sector development, GDP, domestic credit and resource availability are key factors driving the development of eco-innovative entrepreneurship.