Entrepreneurship And The Environment: A Critical Examination Of The Sustainability Of Entrepreneurship Activity

Abstract

Entrepreneurship is widely celebrated as a driver of economic growth and innovation, but its relationship with environmental sustainability has become a subject of critical concern. This paper examines the nexus between entrepreneurship and the environment, evaluating whether entrepreneurial activity is contributing to sustainable development or exacerbating ecological challenges. We review the concept of sustainable entrepreneurship – entrepreneurial ventures that integrate economic, social, and environmental goals – and discuss its theoretical underpinnings and definitions. Drawing on recent literature and data, we explore the positive potential of entrepreneurship to advance environmental solutions (such as clean energy and waste management innovations), as well as the negative impacts of unchecked entrepreneurial growth on resource consumption and emissions. The analysis includes a global perspective with a focus on India, one of the fastest growing entrepreneurial ecosystems, to illustrate how sustainable entrepreneurship is emerging in practice and what challenges it faces. Findings suggest that while entrepreneurship can be a catalyst for environmental innovation and sustainability, this outcome is not guaranteed – in fact, conventional high-growth entrepreneurship often correlates with increased environmental pressures. Practical implications include the need for supportive policies, funding mechanisms, and educational initiatives to foster an ecosystem in which entrepreneurs incorporate sustainability principles. We conclude that achieving truly sustainable entrepreneurship requires reorienting entrepreneurial activity toward the “triple bottom line” of economic, social, and environmental value creation, ensuring that entrepreneurial growth does not come at the cost of our planet’s health.