The Role of Green Entrepreneurship in Driving Sustainability: A Systematic Literature Review

Abstract

The growing urgency of climate change and environmental degradation has intensified scholarly and policy interest in the role of entrepreneurship in advancing
sustainability. Among various approaches, green entrepreneurship has emerged as a critical mechanism for aligning economic opportunity with ecological
responsibility. Despite increasing research, the field remains fragmented, with studies dispersed across themes such as innovation, finance, leadership, and
institutional legitimacy. To address this gap, this study conducts a Systematic Literature Review (SLR) of 25 peer-reviewed articles published between 2018 and
2025, including the foundational work of Riandita et al. (2021). Following PRISMA guidelines, relevant studies were identified from Scopus and leading journals
in entrepreneurship, management, and sustainability. The thematic synthesis reveals four dominant streams: (1) innovation and transformation, highlighting ecoinnovation, digital sustainability, and circular business models; (2) finance and markets, emphasizing the role of venture capital, ESG investment, and emerging
green markets; (3) leadership and orientation, showing how competencies and green entrepreneurial orientation enhance sustainable performance; and (4)
legitimation and ecosystems, underscoring the importance of institutional support, partnerships, and ecosystem engagement. Together, these themes demonstrate
that green entrepreneurship drives sustainability most effectively when innovation is reinforced by finance, leadership, and legitimacy. The review contributes
by integrating fragmented insights into a coherent framework, offering implications for scholars, practitioners, policymakers, and investors. It also highlights
gaps, including the need for longitudinal studies, research in emerging economies, exploration of digital technologies, and analysis of financing mechanisms. By
consolidating recent scholarship, this review underscores that green entrepreneurship is not peripheral but a central pathway for enabling sustainability transitions.