Extended Abstract
Background: Due to the increase in the population, the decrease in the share of the government in employment, and the increase in the share of the private sector in the economy, entrepreneurship has nowadays been proposed as a tool to achieve the social, economic, and dynamic goals of societies. Entrepreneurship falls into the major inexhaustible resources of all human societies, and entrepreneurs, as owners of thoughts and ideas, create value by identifying and using existing opportunities and are considered key factors in improving productivity and economic growth. Before the recent economic developments, it was believed that economic growth would increase incomes and improve the quality of people's lives, but the economic growth along with the decrease in environmental quality caused the issues related to sustainable development to be the focus of global attention. Sustainable development is the development that meets the needs of the current generation without jeopardizing the ability of future generations.In this path, there are sustainable societies that pay attention to environmental sustainability in addition to social and economic sustainability. The development of entrepreneurship with the aim of higher economic growth along with the excessive consumption of natural resources and the destruction of the environment has made it necessary to simultaneously pay attention to the goals of economic and environmental sustainability. According to the stated contents, the current research aims to investigate the relationship between entrepreneurship, economy, and environmental quality in a selection of developing and developed countries.
Methods: In 2024, this research investigated the simultaneous effects of entrepreneurship, economic growth, and environmental quality on each other during 1995-2020 using data on 26 selected developing countries and 17 selected developed countries. In the current applied research, data and information were collectedthrough the library-documentary method. Therefore, factors affecting entrepreneurship, environment, and economic growth werefirst extractedby reviewing previous studies. Then, the coefficients of the model variables were estimated using the system of simultaneous equations method with tabular data (panel 3sls). This method estimates all the equations simultaneously in the system of equations, which is asymptotically more efficient, and all the coefficients of the studied relationship variables can be calculated simultaneouslywith this method. Stata version 13 software was used to estimate the equations.
Results: The results of estimating the coefficients of the simultaneous equations showed that GDP per capita, energy consumption, and financial development variables had a positive and significant effect on environmental pollutionin developed countries, with coefficients of 0.332, 0.318, and 0.118, respectively. However, trade liberalization and entrepreneurship negativelyaffected environmental degradation with coefficients of -0.105 and -0.266, respectively. In these countries, the energy consumption, trade liberalization, entrepreneurship, and financial development variables had a positive and significant effect on economic growth with coefficients of 0.551, 0.213, 0.498, and 0.108, respectively. Besides, the GDP per capita, public government expenditure, trade liberalization, fixed capital formation, and research and development expenditurevariables, with coefficients of 0.475, 0.005, 0.339, 0.016, and 0.141,showed a positive and significant effect. They were based on entrepreneurship and caused the development of entrepreneurship. The results of the simultaneous estimation of relations in developing countries showed that the GDP per capita, energy consumption, and entrepreneurshipvariables had a positive and significant effect with the coefficients of 0.466, 0.629, and 0.203, respectively, and the trade liberalization variable with a coefficient of -0.117 had a negative and significant impact on environmental pollution. In these countries, energy consumption, trade liberalization, entrepreneurship, public government expenditure, and financial development increased economic growth with coefficients of 0.749, 0.117, 0.114, 0.072, and 0.202, respectively. The GDP per capita, trade liberalization, fixed capital formation, and research and development expenditurevariables had a positive and significant effect on entrepreneurship in developing countries, with coefficients of 0.210, 0.115, 0.545, and 0.033, respectively.However, public government expenditure did not significantlyimpact the development of entrepreneurship in these countries.
Conclusion: In recent decades, the destruction of the environment has increased and serious damage has been caused to the ecosystemdue to the development of economic activities with the aim of higher economic growth.In the meantime, one of the most important activities related to increasing economic growth has been the development of entrepreneurship, which has had a negative impact on environmental pollution and destructionin developed countries, where, entrepreneurship development has,therefore, been carried out in line with sustainable development policies. Despite the significant contribution of entrepreneurship in the economic growth of developing countries, entrepreneurship has caused an increase in pollution and endangered the sustainability of their environment because the goal of economic growth and more production has been pursuedin these countries, without considering the environmental aspect of economic activities. According to the obtained results,therefore, it is suggested that entrepreneurship and entrepreneurial activities should continue to be consideredto increase economic growth and increase the welfare of societies.However, the necessary platform for environment-friendly entrepreneurshipactivities should be providedto prevent the negative effects of entrepreneurship development on the environment.Moreover, entrepreneurship development, economic growth, and environmental quality improvement should be taken into consideration togetherwith proper planning, policymaking, and environmental laws.