Green Entrepreneurship in Africa: The Environmental Sustainability, Eco-Innovation, and Inclusive Economic Empowerment Nexus

Abstract Green entrepreneurship is increasingly positioned as a critical mechanism for reconciling environmental sustainability with inclusive economic development in Africa. However, empirical evidence explaining how green entrepreneurship is associated with economic and social value remains limited. This study addresses this gap by analysing an integrated, ecosystem-based model linking green entrepreneurship to environmental sustainability and inclusive economic empowerment. Using a quantitative explanatory design and applying PLS-SEM to survey data from 8,553 small and medium-scale enterprises across 12 African countries. The model examines direct effects, the mediating role of eco-innovation, and the moderating influence of green finance, while incorporating key ecosystem enablers, including sustainable public procurement signals and indigenous knowledge synergies. Ecosystem enablers are positively associated with green entrepreneurial activity, while green finance strengthens the observed relationships among green entrepreneurship, innovation and environmental outcomes, although its association with inclusive economic empowerment is more conditional. The study evidences an innovation-led pathway through which green entrepreneurship delivers socio-environmental returns, implying that procurement rules, green finance, and innovation policy should be jointly aligned to scale green ventures, thereby strengthening sustainable development trajectories in Africa. JEL Classification : G28, L26, O31, O55, Q36