Effects of female entrepreneurship on sustainable development goals: the moderating role of gender gap

Abstract

Female Entrepreneurship (FE) is discussed and examined for its potential to support Sustainable Development Goals (SDGs). Recent economic literature has recognized that the contribution of FE to the achievement of the 2030 Agenda is a domain still scarcely explored. The aim of this study is to analyze if FE has a positive impact on Social, Economic and Environmental Development Goals. Our premise is that these impacts are negatively moderated by Gender Gap. To achieve this objective, the research conducts an empirical cross-country analysis with the Structural Equations Model (SEM) for 76 countries worldwide using different databases such as the SDG Index, FE Index, and Global Gender Gap Index, all of which are open access. Our findings show positive and significant effects of FE on social, economic and environmental development. Moreover, the Gender Gap plays a negative and significant moderating role in Environmental Development Goals. Although other studies have proven the relationship between female entrepreneurship and economic, social or environmental sustainability, the integration of all of them into a single model gives rigor to our results. Moreover, it is the first to include the moderating role of the gender gap in this relationship. Policymakers, business leaders and communities should work together to create an environment encouraging and supporting FE, and reducing the gender gap, for the positive consequences that this can have in the form of greater impact of FE on environmental sustainable development.