Digital Technologies and Entrepreneurial Factors Driving Green MSME Development

Green entrepreneurship has become an essential strategy for addressing environmental challenges while maintaining economic sustainability, particularly among micro, small, and medium enterprises (MSMEs) in emerging economies. With the rapid advancement of digital technologies, the integration of data driven tools and digital platforms offers new opportunities to accelerate sustainable business transformation. However, the combined role of technological and entrepreneurial factors in fostering green entrepreneurship remains underexplored. This study aims to examine how digital technology adoption, entrepreneurial skills, external incentives, and entrepreneurship education influence green entrepreneurship development in MSMEs. A quantitative approach was employed using survey data collected from MSME actors, and the proposed relationships were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess both measurement and structural models. The results indicate that digital technology adoption, alongside entrepreneurial skills, incentives, and education, has a positive and significant effect on green entrepreneurship, with digital adoption and entrepreneurship education emerging as the strongest predictors. These findings highlight the critical role of integrating technological capabilities with human capital develop- ment to support environmentally sustainable practices. This study contributes to the literature by extending green entrepreneurship models through the inclusion of digital transformation factors within MSME contexts. The findings imply that policymakers and practitioners should promote digital infrastructure, targeted training, and incentive mechanisms to accelerate sustainable innovation. Future research should explore advanced technologies such as artificial intelligence and cross-regional analyses to enhance scalability and generalizability.