Promoting entrepreneurship for sustainable development: Are education capital and ICT diffusion important?

Abstract This article makes a valuable contribution to the existing literature on sustainable entrepreneurship by investigating the impact of entrepreneurship (both opportunity‐driven and necessity‐driven) on the achievement of sustainable development (SD) across its three dimensions. Additionally, it explores the underlying mechanisms through which this relationship is influenced. Specifically, the study examines the role of education capital (including education levels and government spending on education) and information and communication technology (ICT) diffusion (access, usage, and skills) in facilitating this relationship. The analysis focuses on data from Saudi Arabia and utilizes the Dynamic Ordinary Least Squares (DOLS) estimator. The findings indicate that only opportunity entrepreneurship exhibits a positive influence on SD. Furthermore, the study reveals that the positive impact of opportunity entrepreneurship is amplified through its interaction with government spending on education and tertiary education, leading to favorable indirect net effects on SD at both aggregated and disaggregated levels. Similarly, the interaction between opportunity entrepreneurship and ICT usage, as well as access, generates positive indirect net effects on SD across aggregated and disaggregated levels. Therefore, education capital and ICT diffusion are indeed key mechanisms that foster opportunity‐driven entrepreneurship for achieving SD. Education equips individuals with the necessary skills and mindset, whereas ICTs provide access to information, markets, and tools for business efficiency and innovation. By investing in education and promoting the widespread adoption and accessibility of ICTs, governments can empower individuals to become successful entrepreneurs while driving sustainable economic, environmental, and social progress.