ABSTRACT This study investigates how entrepreneurship contributes to economic sustainability, with particular emphasis on the conditioning roles of entrepreneurial governance and digital infrastructure. Drawing on evidence from 17 emerging economies, the analysis distinguishes between opportunity‐driven entrepreneurship, necessity‐driven entrepreneurship, and total early‐stage entrepreneurial activity to capture differences in both the quality and intensity of entrepreneurial dynamics. The findings indicate that entrepreneurship does not uniformly promote economic sustainability. Opportunity‐driven entrepreneurship supports sustainable economic outcomes, whereas necessity‐driven entrepreneurship may hinder long‐term sustainability when institutional conditions are weak. Total early‐stage entrepreneurial activity, when considered in aggregate, shows limited direct relevance; however, its contribution becomes economically meaningful in contexts characterized by strong governance frameworks and well‐developed digital infrastructure. These results advance institutional and resource‐based perspectives by demonstrating that governance quality and digital readiness are essential mechanisms through which entrepreneurial activity translates into sustainable economic performance. From a policy perspective, the study highlights the importance of fostering innovation‐oriented entrepreneurship through coordinated investments in digital ecosystems and governance reforms. Despite its contributions, the analysis is limited by its macrolevel scope and country coverage, suggesting opportunities for future research using firm‐level data, alternative sustainability dimensions, and additional contextual factors.
Alfehaid et al. (Thu,) studied this question.
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