Social Innovation in Entrepreneurship: A Strategic Pathway to Poverty Reduction for Sustainable Development: A systematic Literature Review

In this review, we examine how social innovation plays a role in entrepreneurship as a way to fight poverty and encourage sustainable development. While entrepreneurship has long been seen as a key driver of economic growth, our review establishes that there has been little focus on its link with social innovation. Specifically, more attention is needed on how it can address economic, social, and environmental challenges in a comprehensive way. This gap in the literature shows the need to better understand how entrepreneurial practices, when paired with social innovation, can create value beyond just financial success. The study is anchored on Diffusion of Innovations Theory, which provides a framework for understanding how novel entrepreneurial solutions are adopted and scaled within communities. To address this, the review applies a systematic literature review approach guided by PRISMA protocols. Empirical studies, reports, and peer-reviewed journal articles published between 2019 and 2025 were identified and thematically analysed to capture how social innovation is integrated into entrepreneurial strategies and practices. Findings indicate that interventions such as microfinance, digital platforms, vocational training, renewable energy projects, and community-driven models have demonstrated substantial potential in improving livelihoods and reducing vulnerability among marginalised populations. However, we observe that persistent challenges remain regarding long-term sustainability, scalability, and context-specific adaptation. What makes our review unique is its interdisciplinary approach, linking business strategy to social results. Our review offers a well-rounded view of how entrepreneurship can be used to tackle deep-rooted societal issues. This work adds to the existing knowledge by providing a thorough analysis of how social innovation in entrepreneurship can drive significant change, encourage inclusivity, and support sustainable development. It also offers insights that can guide future research, policy, and practice seeking to leverage entrepreneurial innovation for inclusive and sustainable development.