What role does digitalization play in the entrepreneurship-sustainable development nexus in Africa?

Abstract

Sustainable development attempts to support the growth of individuals, communities, and cultures to attain a reasonable and equitable quality of life, healthcare, and education worldwide. Entrepreneurship and digitalization are widely acknowledged to be important in achieving sustainable development by creating job opportunities, increasing innovation, and supporting environmentally responsible corporate practices. Thus, the study explores the moderating role of digitalization in the nexus between entrepreneurship and sustainable development in Africa between 2006 and 2019. This is crucial in this era of digital technologies, especially in Africa where entrepreneurship may serve as a bedrock for economic development and growth. The study employs Driscoll and Kraay, Lewbel's two-stage least squares, and system generalized method of moments (SYGMM) techniques. The findings show that entrepreneurship positively influences sustainable development. Digitalization has a positive effect on sustainable development. Also, it acts as a complement to the entrepreneurship-sustainable development nexus, implying that digitalization enhances entrepreneurship in spurring sustainable development in Africa. Also, the findings show that both digitalization and entrepreneurship contribute to economic and social sustainability but lead to environmental degradation in Africa. The study, therefore, offers policy recommendations for policymakers, especially in African countries.