Influence of Social, Environmental and Economic Sustainable Development Goals (SDGs) over Continuation of Entrepreneurship and Competitiveness

Abstract

The Sustainable Development Goals (SDGs) were proposed in 2015 to promote worldwide improvements in human wellbeing. Governments have different levels of commitment to the SDGs, reflected in the SDG index, which shows the compliance of each country, detailing each score by SDG. The Global Entrepreneurship Monitor reports show the advances of global entrepreneurship in various countries, while the Global Competitiveness Report shows their competitiveness. This analysis was based on environmental, social, and economic outcomes of SDGs from the SDG index 2018. We also evaluated data from the Global Competitiveness Report 2018 and the Global Entrepreneurship Monitor report 2018. A partial least-squares structural-equation-modeling technical analysis was used. It was found that social SDGs (0.796) and environmental SDGs (0.196) had a positive influence on economic SDGs; also, economic SDGs had a positive influence on the continuation of entrepreneurship (0.590) and competitiveness (0.918). The model explained 34.8% of the continuation of entrepreneurship and 84.3% of that of competitiveness. The outcomes of the bootstrapping test were used to evaluate whether the path coefficients were significant. This information can help governments and organizations to recognize the impact of support and promote compliance with SDGs and the continuation of entrepreneurship and competitiveness. Moreover, this information provides the means to analyze the influence of open innovation in accomplishing the SDGs faster. The study’s novelty is the use of the PLS-SEM technique to analyze these worldwide indicators.

1. Introduction

When the Sustainable Development Goals (SDGs) were proposed, the aim was to achieve generalized wellbeing, addressing the social, environmental, and ecological components. Through the Sustainable Development Report, the level of compliance of countries with each SDG is monitored. It has been recognized that compliance with the SDGs generates various impacts in a country [1,2]. However, the SDGs are often criticized as being obligations for developed countries or only being promoted by multinationals [3,4,5]. On the other hand, it has been possible to demonstrate the economic development efforts carried out in various countries through entrepreneurship [6,7,8,9,10]. The term “open innovation” refers to a management strategy centered on the necessity for businesses to expand their innovation procedures and merge internally and externally produced technology to generate business value [11]. Because of the criticism leveled at the SDGs and the difficulty in achieving them, it is essential to consider all possible tools, methods, and support to speed up the achievement of these objectives.

When national budgets are evaluated, it can appear that financing the fulfillment of SDGs would mean reducing spending in other sectors, and therefore that achieving these goals should not be a priority. However, economic benefits can be generated when the social SDGs are met. Thus, for example, when countries seek to fulfill SDG 4 (quality education), improving the population’s education level leads to a tangible impact on the economy due to the increase in the level of knowledge, and therefore, of the new professionals who lead educational institutions and companies. Likewise, it has been possible to identify the impact of the level of education on GDP.

Entrepreneurship generates various opportunities for people since it allows for economic gains that support survival and provides work to other people involved in a country’s productive processes. Entrepreneurship is increasingly promoted, and it can be seen that during the COVID-19 pandemic, it has increased [11,12,13,14,15], and it has even been diversified into social entrepreneurship [16,17,18,19], environmental entrepreneurship [20,21], SDG entrepreneurship [22,23], and technological entrepreneurship [24,25]. Compliance with the SDGs means that countries can have better living conditions in general, and as expected, the sustainable development of a country is supported, providing the necessary conditions for new companies to be successful.

The competitiveness of a country is a fundamental indicator since it shows how prosperous a country is in generating business globally, efficiently, and continuously. Building and maintaining high competitiveness in a country is a basic need that governments must ensure, but companies, universities, and citizens are key actors in the achievement of this objective. Trade agreements are an opportunity to generate significant commercial activities, such as, for example, the agreement between the UK, Saudi Arabia, and other Gulf countries [26], the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) ratified by nine countries, and by countries such as the UK [27], Taiwan [28], and China [29]. In the quest to increase competitiveness and boost entrepreneurship, open innovation plays an important role. It involves the use of knowledge to accelerate internal innovation and to increase markets for external innovation applications [30], which becomes a crucial element to meet the SDGs as it allows innovative solutions to traditional problems to be implemented through organizations such as companies that can generate significant changes, especially in production and consumption [31].

Everything explained above can be understood as the need to demonstrate that compliance with the SDGs has an impact beyond just the commitment to the United Nations and other signatory countries. It seeks to show that each SDG has a relationship with other SDGs, and demonstrates that compliance with the social and environmental SDGs may impact the economic SDGs. At the same time, it seeks to show that this compliance with the economic SDGs contributes to increasing the competitiveness of a country, and that finally, competitiveness is a requirement to ensure the continuation of entrepreneurship efforts in a country. A correlation methodology is chosen to identify the level of influence between the study variables, which SDGs do not influence the model and which ones should be promoted more to achieve the mutual benefits that need to be achieved in a country.

The current study aims to assess the influence of social SDGs and environmental SDG, through economic SDGs, on the competitiveness and continuation of entrepreneurship. Furthermore, it can be seen that open innovation becomes an essential tool for developing concepts, business sustainability, and competitiveness from the perspective of the SDGs [32]. The current article is structured as follows: Section 2 shows the theoretical framework and hypothesis; the methodology is provided in Section 3; Section 4 gives the results; Section 5 presents the discussion; and Section 6 concludes.

2. Theoretical Framework and Hypothesis

2.1. Social SDGs

The SDGs with a focus on social outcomes for use in the current research were: SDG 4 (ensure inclusive and equitable quality education and promote lifelong learning opportunities for all), SDG 5 (achieve gender equality and empower all women and girls), SDG 10 (reduce inequality within and among countries), and SDG 16 (promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels) [33,34]. Specifically, ensuring that education meets the highest standards allow processes to be optimized throughout the country. SDG 5 is socially relevant because it focuses on ensuring gender equality and empowering women and girls, thereby achieving lower spending on violence prevention against women, achieving healthier organizations by reducing harassment, and ensuring that people in companies and schools can experience a harmonious society and life [35]. SDG 10 seeks to achieve equal access to work, health services, and food, ensuring that people can achieve more significant development, generating direct economic development within the country by optimizing access for citizens [36]. SDG 16 is focused on creating a peaceful, inclusive society for sustainable development, generating trust within the population, and thereby achieving solid institutions that positively impact people’s daily lives [37]. In healthcare systems, strategies related to open innovation were used and implemented quickly during the pandemic. This is because the use of artificial intelligence, for example, speeds up the diagnostic processes, making the healthcare system more efficient than ever. Thus, the system can become an establishment that is accessible to all, and one that complies with SDG 10 that seeks equality between people which includes the services available for them [38]. The values of social SDGs are described in Appendix A.

2.2. Environmental SDGs

The SDGs with a focus on environmental outcomes selected for use in the current research were SDG 6 (ensure access to water and sanitation for all), SDG 7 (ensure access to affordable, reliable, sustainable, and modern energy), and SDG 11 (make cities inclusive, safe, resilient and sustainable) [33,34]. When seeking compliance with SDG 6, the objective is that all people can count on essential services such as having clean water to carry out primary sanitation activities correctly. The assurance of this objective would provide communities with a healthier lifestyle. SDG 7 seeks to access safe, sustainable, and modern energy for everyone. The relevance of open access to this service is that it directly relates to the production of goods and food, and it is necessary to fight climate change [39]. SGD 11 prioritizes the sustainable and equal development of cities, because such urban areas are supposed to provide safe and affordable services such that, even with the increase in the world’s population, every person could be conveniently accommodated [40]. Green innovation allows a company to save costs and time and increase the efficiency of its employees and operations, and at the same time, it creates a green reputation for the company that can become a competitive advantage. This is why its use can help to achieve the SDGs related to the environment [38]. The values of the environmental SDGs are shown in Appendix B.

2.3. Economic SDGs

The SDGs with a focus on economic outcomes selected for use in the current research were: SDG 2 (zero hunger), SDG 3 (ensure healthy lives and promote wellbeing for all at all ages), SDG 8 (promote sustained, inclusive, and sustainable economic growth, full and productive employment and decent work for all), and SDG 9 (build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation) [33,34]. By complying with SDG 2, we seek to eliminate the lack of food. This is necessary for people to survive in the world. SDG 8 is important because it is necessary to ensure that people have a decent job and quality of life. In addition, since it is directly related to the economy, it also aims to reduce unemployment and improve working conditions, which is beneficial for both individuals and companies as it seeks to improve labor productivity [41]. SDG 9 seeks to overcome those challenges to ensure that companies and people improve their productivity and become competitive in their markets. Due to the significant growth of cities and industries, this objective is essential to continue building sustainable and innovative infrastructure [42]. It is essential to mention that studies have shown that giving autonomy to employees and assuring a good work environment can increase the possibility of achieving high innovation levels while also meeting SDG 8 [43]. Furthermore, various authors have concluded that open innovation models depend on internal factors such as companies’ capacity or technological stock and external factors such as the industry to which the company belongs [44]. The values of economic SDGs are presented in Appendix C.

2.4. Global Competitiveness Report 2018

Due to the evolution of trade in recent years and the globalized world we live in, competitiveness between countries has become increasingly important to determine the leading countries of this era. Therefore, for states and the people who manage governments, increasing their competitiveness is one of the most critical problems that must be solved through different strategies and by identifying deficiencies in their economy [45]. In the most competitive markets, the state’s role is relevant to defining the competitiveness of its products and services. For example, the decision of the states to apply or not to apply antitrust measures is one of their primary functions, and affects the competitiveness of the country [46]. States must also consider other essential factors such as education, science, and technology, since their development and innovation make a competitive and sustainable future viable for countries to achieve these objectives [45]. Small- and medium-sized businesses (SMEs) now dominate most economies across the world, and as a result, they strive for technological superiority and more innovation. Open innovation and eco-innovation are critical components in achieving these aims in this context [47]. The 2018 Global Competitiveness Report and the sustainable development goals link competitiveness and factors. Likewise, for the 2018 Global Competitiveness Report, it is essential to consider important historical events that could change countries’ competitiveness. For example, the fourth industrial revolution, also called 4IR, marks the beginning of a new phase. This new phase constitutes a reality where new business opportunities are created, but at the same time, greater polarization is created within and outside the states’ economies. In addition, the 2018 Global Competitiveness Report also coincides with the 10th anniversary of the global financial crisis, which also had significant consequences on economies and society, and therefore, on the competitiveness of countries. On this basis, the 2018 Global Competitiveness Report presents the improved version 4.0 based on 40 years of experience and history that assesses the drivers of competitiveness of this new era; in turn, the world economic forum seeks to promote the formulation of global policies that take into account the 4IR and its influence on competitiveness [48].

2.5. Global Entrepreneurship Monitor Report 2018

Open innovation, organizational, extra-organizational, inter-organizational, industry, regional innovation systems, and society are the critical perspectives and themes associated with companies [49]. Because open innovation can be a valuable tool for identifying opportunities for entrepreneurs in all types of companies and circumstances, the relationship between open innovation and entrepreneurship is considered at the organizational level of study [50]. Entrepreneurship is a phenomenon that arises across various scientific disciplines [51], making it complicated to establish a consensus on both its definition and nature [52]. Nevertheless, entrepreneurial activity contributes significantly to economic growth [53,54]. When entrepreneurs start new firms, it creates jobs, enhances competition, and possibly increases productivity due to technological advancements [55]. As a result, high levels of measured entrepreneurship directly translate into high levels of economic growth [53,56,57].

The reality, on the other hand, is burdensome, since if any sort of irregular self-employment was included in the definition of entrepreneurship, then high rates of entrepreneurship might imply either considerable administrative barriers to setting up a business or simply that the industry provides too few traditional wage-earning job opportunities [56]. For this, it has become imperative for entrepreneurs to better understand and locate examples of successful practices for incorporating open innovation into their operations, since such strategy can influence the impact of funding, value creation, teamwork, and the benefits of networks in boosting the likelihood of entrepreneurial success [49,58].

Nowadays, obtaining information about entrepreneurial activity among countries is less complicated than before, thanks to the annual Global Entrepreneurship Monitor Report [59]. The Global Entrepreneurship Monitor (GME) conducts global surveys on entrepreneurship and entrepreneurial ecosystems. It is a networked consortium of national country teams, most of whom are affiliated with prestigious academic institutions. Moreover, this organization is the only global research source that collects entrepreneurship statistics directly from business owners. As a result, GEM data and tools are one-of-a-kind and beneficial to a wide range of stakeholders. Policymakers have benefited from GEM’s research on encouraging entrepreneurship to re-launch growth and prosperity thanks to its variety of information on patterns of early-stage entrepreneurial activity that can ease starting a business. It encourages the critical innovation needed to seize new opportunities, boosts productivity, creates jobs, and addresses some of society’s most pressing issues, such as the United Nations Sustainable Development Goals (SDGs).

2.6. Relationship between Variables

2.6.1. Social SDGs and Economic SDGs

Infrastructure and skills are among the social reasons that influence competitiveness in education. This area is related to SDG 4. Education is essential because deficiencies in this area must be addressed with relevant strategies that can make significant changes; pure innovation and the application of technologies cannot solve the problem of education in general. There is no rapid and significant economic growth in education; for example, it is usually a case of how plans are executed and the institutions themselves. This impediment in development is what becomes a factor by which the competitiveness of a country is influenced [48].

Regarding gender equality, in recent years, the World Economic Forum (WEF) has promoted a series of initiatives to discuss gender issues, such as the production of reports that provide a ranking of countries with the best performance in terms of elimination of gender inequality, female representation, and others [46,60,61]. The work carried out by the WEF seeks to support the direct relationship between gender equality and economic growth. In addition, it raises the concept of economically empowered women as a form of impulse for the countries towards greater competitiveness, and even as a way of anticipating another financial crisis [62].

Regarding the relationship between inequality and competitiveness of countries, the level of competitiveness of a country can impact inequality in the region in two ways. The competitiveness of a country affects existing inequality in countries and can create differences in wages and job offers. The policies adopted by the states can generate an economic expansion of knowledge that is accompanied by an increase in low-skilled jobs that accompany these services. The other way it affects competitiveness is through the competitiveness strategies that are applied, since they use beneficiaries disproportionately in some groups because well-paid but well-qualified jobs are created [63]. Regarding the relationship between competitiveness and justice, the justification affects social cohesion. It is stated that a country with greater social cohesion has more significant opportunities for economic growth, which increases the chances of it becoming a competitive state [64].

Recent studies have shown a relational tendency for economic growth with greater social inequality and segmentation; this contradicts what was raised at the beginning [64]. The argument of these studies is summarized in that competitiveness forces companies to minimize their costs by reducing “generic labor” [65]. On the other hand, in companies where highly qualified personnel are needed, they may demand very high salaries according to their performance and knowledge in the area they develop, which happens more than anywhere in more competitive societies where efficiency is highly valued. At the same time, workspaces are produced where highly qualified command personnel are available, and personnel with low qualifications are attracted to accompany them in that work center, which is how more significant differences in salaries, and therefore, social segmentation, are generated [64].

2.6.2. Environmental SDGs and Economic SDGs

The population continues to increase globally alongside the deterioration of the environment and sanitation [66], especially in densely populated areas. Additionally, the incorrect use and management of natural resources, combined with the low awareness of the population on environmental health, have led to an increase in the problem [67].

To analyze the environmental SDGs, we discuss SDG 6 (ensure access to water and sanitation for all) with competitiveness. First, it is crucial to mention that raising awareness about the importance of having a clean and healthy environment in higher educational institutions could positively affect it, because it would result in a more comfortable learning environment [68]. Consequently, a good education means highly trained professionals can join the workforce and make their countries more competitive. On the other hand, providing clean water and sanitation for everyone takes a form where continued public regulation of private companies is inevitable. This form of regulation can be reduced by assuming a competitive practice of privatization with a competitive sector structure and a regulatory regime [69]. With all of this, ensuring clean water and sanitation for all reduce the number of deaths and illnesses from pollution and significantly increase a country’s economic growth. It would be easier to consider the sustainability goals, specifically SDG 6, and begin implementing some changes [70].

It is necessary to continue with the programs as a form of support and to integrate a sustainable economic model where initiatives are adopted for private profit. This would create a genuine comparative advantage for these cities in being inclusive, safe, resilient, and sustainable cities. The comparative advantages of each city can be maximized and converted into a profitable business that can compete inside and outside the city, which is the key to achieving sustainable cities that contribute to economic growth through programs and policies that redistribute wealth [71].

2.6.3. Economic SDGs and Competitiveness

Achieving the goal of zero hunger is especially important to prove that if countries focus on investing in human capital, they can be rewarded with a significant competitive advantage in the present world because companies need human capital. The more investment there is in this human capital, the more highly qualified workers there can be, which inevitably drives economic growth and redirects the current economies of less developed countries. People are indispensable within the economy, and when the countries’ authorities fail to invest effectively in them, the costs are even higher in the most vulnerable populations, and the country’s competitiveness decreases [72]. The sustainable objectives are based on the idea that economic growth is interconnected with the environment and social wellbeing. The relationship between human wellbeing and the health of natural ecosystems is strictly linked [70]. SDG 3 is important since health and wellbeing are currently often affected by the lack of health workers in certain countries. The lack of qualified people for this type of work in the health field is a problem that negatively affects the economy [73], which is why it is necessary to invest in the health and wellbeing of people of all ages, since these people are the ones who contribute at the labor level to the economy of their respective countries.

In order for all economic, social, and environmental policies proposed to work, decent conditions must exist in the workforce so that human capital can have good wellbeing and health that increases the productivity of companies and the competitiveness of countries. Decent conditions include social protection a healthy work environment, among others. Additionally, employees and workers must be an essential part of the dialogue between the company and its collaborators, with an active role in reaching an agreement on decent work [74].

Meeting the objectives proposed by SDG 9 is essential since it can realize competitive and dynamic economic growth capable of generating jobs and income, facilitating the adaptation of new technologies in international trade, and improving people’s wellbeing. This also promotes the responsible and efficient use of resources [75]. The least developed countries need to accelerate the development of the manufacturing industry to meet the objectives, and scale up to a more significant investment in research and innovation in different sectors that can boost economic growth. However, globally, the manufacture of goods has been declining for the last few years, since before the pandemic. The manufacturing industry that should be boosted was affected by the pandemic, disrupting production processes and the supply chain around the world, which is why innovation and the use of technology are vital to developing long-term solutions to meet sustainable objectives [76].

2.6.4. Competitiveness Based on SDGs and Continuation of Entrepreneurship

Competitiveness Based on Social SDGs and Continuation of Entrepreneurship

The Sustainable Development Goals can be considered complicated global concerns that require a wide range of innovative solutions to accomplish them. Because of the inclination of society to overcome challenges that others miss or cannot address as efficiently or effectively as a social enterprise, social entrepreneurs can play an essential role in this [77]. Entrepreneurs who practice social entrepreneurship have the following characteristics: they aim to create social value, whether exclusively or prominently; they can recognize and capitalize on the opportunity to develop that value; they use innovative thinking in creating and delivering social value; and they are uncommonly resourceful in pursuing their profitable enterprise despite limited resources [78]. For entrepreneurs to successfully overcome social issues related to the SDGs, they need to work collectively [79,80]. Collaboration is crucial because it aids businesses in achieving their goals, and it aids social enterprises in obtaining resources and finance, strengthening their legitimacy, and gaining access to capital [78]. Social entrepreneurs work to build the communities they serve by investing in human development and social capital inside these communities, resulting in tangible capital and intangible benefits such as wellbeing and a better quality of life [81].

Entrepreneurship has been responsible for creating many program initiatives to foment equal educational opportunities among people of many different countries; thus, fulfilling the bases of SDG 4. The Youth Start Entrepreneurial Challenges program is a prominent example of this. It was designed and field-tested for three years as part of a European collaboration involving the Ministries of Education of Luxembourg, Portugal, Slovenia, Austria, and NGOs (as part of an Erasmus+ Key Action 3 policy experimentation project), primary and secondary schools, business colleges, social and service industries, technical colleges, and vocational schools [82]. This program is closely related to compliance with SDG 10 since it is implemented in different countries, seeking the same opportunities and quality of education in them [82] through the promotion of entrepreneurship.

Regarding SDG 5, entrepreneurship has been the key to allowing women to obtain a critical role in the global economy [83]. Greater access to financial resources results in an immediate increase in impoverished people’s income, and as a result, encourages company startup, which requires access to capital and a favorable business environment, particularly for women. In developing countries, micro-entrepreneurship is noticeable on congested streets as people support their households by earning money [84].

Finally, it is noticeable that entrepreneurship has great importance in the progressive achievement of SDG 16. Just as much as Public and International Policy and International Affairs, private enterprises have played an essential role in the efforts to resolve numerous confrontations globally [85]. In this spirit, sharing-based organizations have also played an essential role in releasing unused resources and forging social bonds amongst people from all over the world [86]. Entrepreneurs accomplishing peace and prosperity is expected to be obtained by joining an international initiative that would bring companies together with UN agencies to develop ten basic values in fundamental human freedoms, employment, climate, and anticorruption [87].

Competitiveness Based on Environmental SDGs and Continuation of Entrepreneurship

Entrepreneurship can also be related to many factors such as regulations, efficient use of resources, and awareness related to the environment [86,88]. When confronted with the significance of sustainable development and its proper implementation, entrepreneurship has articulated the need for sustainable business models to react to sustainable development goals (SDGs) [89]. As a result, sustainable entrepreneurship has gained traction, with an emphasis on protecting nature, sustaining life and the community, and developing goods and services that reflect individual wellbeing, the economy, and society [90,91], which added to the new role of innovation in health [92], could result in an essential tool for the approach to SDGs, and thus, the approach of sustainable development [93]. For example, the hospitality industry has offered a safe experience, different to the traditional model that people were used to before COVID-19. Implementing a strategy such as open innovation has been necessary to survive during the pandemic [94].

Sustainable entrepreneurship is aided by high levels of sustainable terrestrial resources, sustainable growth, ethical labor, and the excellent availability of affordable renewable power and clean water [95]. Focusing more on individual SDGs, entrepreneurship has a particular role in SDG 6. Nowadays, there is an encouraging perspective in the increasing number of safe water enterprises inventing new methods to provide safe water in neglected communities, even though the current rate of change does not seem quick enough to hit the UN 2030 target [96]. Companies, especially multinational ones, have chosen to take a more collaborative approach to address development issues such as access to potable water, considering that this resource is a human right [97]. Providing safe, potable water is closely related to ensuring access to affordable, reliable, sustainable, and modern energy (SDG 7), since one can be accomplished by the other. Interventions in energy access have served as a mechanism for more significant development and prosperity in neglected communities, consequently providing more opportunities to ensure access to potable water and other kinds of developments, including education and entrepreneurship [98]. It is essential to foment innovation, which represents an opportunity for entrepreneurship to keep improving the quality of energy [99]. Finally, entrepreneurship has become crucial for developing safer, more inclusive, resilient, and sustainable cities. There is poor documentation on small cities’ potential to improve social wellbeing, develop fair and equal communities, decrease resource usage and waste output, improve environmental purity, or cut carbon emissions [100]. This improvement transforms these societies into promising markets for entrepreneurs and answers to urbanization and sustainable development problems [101].

Competitiveness Based on Economic SDGs and Continuation of Entrepreneurship

Social entrepreneurs have been unrivaled catalysts for social change everywhere across the world. They employ market-driven programs to overcome pressing social challenges in novel ways. For decades, social entrepreneurs pushed a wide range of sustainable development solutions through non-profit, for-profit, and hybrid firms, even before they were dubbed SDGs [102]. Comparable to that previously discussed, entrepreneurship can contribute to an environmentally sustainable economy, just as well as social welfare can [103,104]. In this way, sustainable entrepreneurship is acquiring ground as business owners increasingly prioritize sustainability alongside profitability in their business plans [105].

In terms of SDG 2, zero hunger, entrepreneurship has contributed to its achievement by promoting initiatives to finance localities with fewer resources. Understanding how programs are promoted and executed inside large businesses is critical. The “Building Blocks—Blockchain for Zero Hunger” program is a World Food Program (WFP) initiative with a pilot project in Pakistan in 2017, and was later adopted in Jordan. The idea evolved out of a desire to provide financial assistance to refugees in areas where banking and communications systems are under jeopardy owing to conflict, natural catastrophes, and other factors [106]. Over 100,000 people are actively covered by the project (refugees). This entrepreneurial initiative benefits all parties, including the WFP, since it allows the organization to provide help and access essential food resources while maintaining low-cost transactions [106]. Moreover, entrepreneurship assistance and promotion provide technical skill development and entrepreneurship training. Many people’s socio-economic wellbeing would be improved if smallholders were assisted in developing technical capacity and gaining access to the resources they need to compete in the food chain [107].

Ensuring healthy lives and promoting wellbeing for all ages is another SDG that can influence entrepreneurial initiatives by establishing “healthy organizations”. Culture, climate, and practices in healthy businesses produce an appropriate atmosphere for employee health and wellbeing and organizational efficiency [108]. As a result, a healthy organization leads to a healthy and profitable firm [109], demonstrating the strong connection between organizational prosperity and employee wellbeing. When policies and programs integrate and include parts of society, typically left out in the margins, the most significant health benefit to communities is attained [110]. The emphasis is on an excellent organizational attitude, with a primary preventative strategy that recommends interventions at multiple levels: individual, group, organization, and inter-organizational. Healthy businesses must strike the correct balance between their circumstances, industry, and culture, emphasizing the importance of wellbeing and long-term viability [111].

Regarding SDG 8, entrepreneurship becomes an essential tool for introducing and procuring productive employment and decent work. The offer of decent work is one way to recognize people’s dignity at work [112]. Labor standards must be upheld across a company’s activities and value chains. A productive job that pays a decent wage is considered decent work. It should also ensure a better work environment for personal development and social interaction. Nondiscrimination, equal chances and treatment (for men and women), and the ability to raise workplace concerns should all be priorities for businesses [113]. Social conversation and enterprise stability and security have the most significant impact on achieving work–life balance in an organization, keeping reasonable working hours and treating employees fairly [114]. By providing all these characteristics, entrepreneurship becomes a natural booster for good employment conditions, and thus, SDG 8.

Lastly, building resilient infrastructure and promoting sustainable industrialization are closely related to entrepreneurship. Infrastructure adequacy and sufficiency are required for sustainable entrepreneurship, a responsive, ethical commitment to the overall wellbeing of the local, global environment, and social conditions. Because of the overbearing influence on the expansion and development of certain other economic activities, its appropriateness and effectiveness are critical [115]. An extensive and effective infrastructure determines precisely the activities that can be undertaken and the types of sectors that can emerge in an economy. A well-developed infrastructure network reduces income disparity, alleviates poverty, and improves economic growth [116]. By providing resilient infrastructure and sustainable industrialization, entrepreneurship develops economic and social aspects. The data detailing the Continuation of Entrepreneurship and competitiveness are described in Appendix D.

2.7. Hypothesis

Throughout this section, it has been explained that the SDGs are related to each other, influence competitiveness, and finally influence the continuation of entrepreneurship. For this reason, the following hypotheses are proposed:

Hypothesis 1 (H1).

Compliance with the social SDGs has a significant influence on the economic SDGs.

Hypothesis 2 (H2).

Compliance with the environmental SDGs has a significant influence on the economic SDGs.

Hypothesis 3 (H3).

Compliance with the economic SDGs has a significant influence on competitiveness.

Hypothesis 4 (H4).

Competitiveness has a significant influence on the continuation of entrepreneurship.

Figure 1 shows the research model to be tested with all SDGs.

3. Methodology

The current study is observational, non-experimental, and retrospective with an inferential design. The objective is to describe the influence of environmental, social, and economic SDGs through competitiveness on the continuation of entrepreneurship.

3.1. Source of Information

The information was collected from the Global Entrepreneurship Monitor 2017–2018, the Global Competitiveness Report 2018, and SDG index 2018. Information related to the continuation of entrepreneurship was obtained from the values of discontinuation of entrepreneurship percentage from the Global Entrepreneurship Monitor. The information about the value of competitiveness was obtained from the Global Competitiveness Report. The information about SDF was collected from the SDG index. The information collected from each report and index was for the following 45 countries: Angola, Argentina, Austria, Brazil, Bulgaria, Canada, Chile, China, Colombia, Croatia, Cyprus, Egypt, France, Germany, Greece, Guatemala, India, Indonesia, Iran, Ireland, Israel, Italy, Japan, Lebanon, Luxembourg, Morocco, Netherlands, Panama, Peru, Poland, Qatar, Republic of Korea, Russian Federation, Saudi Arabia, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Thailand, Turkey, United Arab Emirates, United Kingdom, United States, and Uruguay. The data detailing the Continuation of Entrepreneurship and competitiveness is described in Appendix A. The values of social SDGs are described in Appendix B. The values of environmental SDGs are shown in Appendix C. Finally, the values of economic SDGs are presented in Appendix D.

3.2. Data Analysis

To evaluate the data collected, SmartPLS version 3.3.2 was employed. Variance-based SEM (PLS) was used in the current study as it is an exploratory analysis, a theory currently under development. SEM PLS is used for samples that do not have a normal distribution and require a non-parametric analysis, as is the case for the current study. Additionally, SEM PLS delivers the R2 values, and simultaneously, shows the significance of relationships between variables to demonstrate how well the model is performing. Finally, SEM PLS can handle many independent variables simultaneously [117]. There are several reasons for choosing PLS-SEM in the current study. The internal consistency of subscales was analyzed using Cronbach’s alpha reliability coefficient, constructed and discriminant validity, and internal consistency through composite reliability [118]. The reliability of each indicator is evaluated by measuring the indicator’s loads. The average extracted variance is utilized to analyze the fit of the model. Additionally, the Fornell–Larcker criterion [119,120] is used to evaluate the discriminant validity.

4. Results

The present investigation’s model was tested based on the data collected by the following reports: The Sustainable Development Goals Index (2018), Global Entrepreneurship Monitor (2018), and the Global Competitiveness Report (2018). The investigation used a partial least-square structural-equation-modeling technical analysis based on these data. It considered five variables for this study, which were: competitiveness, economic factors, environmental factors, entrepreneurship, and social factors, all based on the indices previously mentioned. For the sample, 45 countries were used for the analysis, since only those countries presented the necessary data for the model.

4.1. Measurement Model Assessment

Internal consistency and reliability were tested using composite reliability (CR) and Cronbach’s alpha; the results exceeded the author’s recommendation of 0.6 for descriptive studies, so it can be concluded that the study is consistent. The convergence validity was evaluated by the Average Variance Extracted (AVE). In this case, all latent variables were above 0.5 (

Table 1. Internal Consistency, Reliability and Convergence Validity.

Latent Variable	Cronbach’s Alpha	Composite Reliability (CR)	AVE
Competitiveness	1.000	1.000	1.000
Continuation of entrepreneurship	1.000	1.000	1.000
Economic SDGs	0.927	0.932	0.821
Environmental SDGs	0.741	0.789	0.644
Social SDGs	0.797	0.817	0.560

).

The validity of the identification was checked and analyzed using the Fornell–Larcker criteria. The square root (bold number) extracted from the variance must be greater than the correlation represented by one subscale and the other subscales. It is important to note that all split variances (bold numbers in

Table 2. Discriminant Validity.

Latent Variable	Competitiveness	Continuation of Entrepreneurship	Economical SDGs	Environmental SDGs	Social SDGs
Competitiveness	1.000
Continuation of entrepreneurship	0.590	1.000
Economic SDGs	0.919	0.588	0.906
Environmental SDGs	0.579	0.586	0.698	0.803
Social SDGs	0.864	0.664	0.923	0.679	0.749

) were more significant than their respective AVEs (see Table 2). This information means that their variables were possibly measuring the same concepts; ergo, the existence of discriminant validity cannot be claimed.

4.2. Structural Model Assessment

The variance inflation factor (VIF) was analyzed (

Table 3. Variance inflation factor.

Latent Variable	VIF
COMP	1.000
GEM	1.000
SDG 1	2.319
SDG 2	2.922
SDG 3	3.228
SDG 4	4.055
SDG 5	2.071
SDG 6	2.278
SDG 7	1.384
SDG 8	3.352
SDG 9	5.408
SDG 10	2.193
SDG 11	2.841
SDG 16	2.161

). Values ranged from 1.000 to 5.408, demonstrating some critical collinearity issues, since some are above 5 [121], especially SGD 9, where VIF was around 5.

The last step relates to statistical significance and relevance using bootstrapping with 5000 iterations. Since all p-values < 0.05, all relations were significant.

Table 4. Hypothesis testing.

H	Hypothesis	Original Sample	Mean Sample	Standard Deviation	T-Statistics	p-Value	Test
H1	Competitiveness→Continuation of Entrepreneurship	0.590	0.554	0.150	3.920	0.000	Supported
H2	Economic SDGs→Competitiveness	0.919	0.916	0.025	36.299	0.000	Supported
H4	Environmental SDGs→Economic SDGs	0.132	0.144	0.065	2.025	0.043	Supported
H5	Social SDGs→Economic SDGs	0.833	0.825	0.054	15.543	0.000	Supported

displays all the results of this last step.

Table 5. Specific Indirect Effects.

H	Hypothesis	Original Sample	Mean Sample	Standard Deviation	T-Statistics	p-Value	Test
H1	SDG Econ→Compet→CE	0.542	0.510	0.146	3.712	0.000	Supported
H2	SDG Envi→SDG Econ→Compet	0.122	0.132	0.059	2.065	0.039	Supported
H3	SDG Soc→SDG Econ→Compet	0.765	0.756	0.060	12.705	0.000	Supported
H4	SDG Soc→SDG Econ→Compet→CE	0.451	0.424	0.132	3.407	0.001	Supported
H5	SDG Envi→SDG Econ→Compet→CE	0.072	0.071	0.035	2.034	0.042	Supported

SDG Econ = Economic SDGs; SDG Envi = Environmental SDGs; SDG Soc = Social SDGs; Compet = Competitiveness; CE = Continuation of entrepreneurship.

presents the specific indirect effects related to mediation. All of them are significant. For instance, we corroborated the economic factor mediator between competitiveness, environmental factors, and entrepreneurship.

Figure 2 sums up the information collected and shown through the tables. The SDGs that had loading fewer than 0.5 were eliminated.

5. Discussion

At first glance, it can be understood that entrepreneurship is influenced by the competitiveness of each country, which means that countries who have more business in their territory have a competitive advantage compared to other nations. In the same way, we can observe that the economic factor is the one that has the most significant influence on the competitiveness of the country. It should be clarified and emphasized that economic factors in said countries are influenced by both environmental and social factors present in the context of each nation. A healthy environment allows human capital to develop itself into the labor force to contribute to economic growth.

The economic factors of a country, as can be observed in the figure above, are highly important for the fulfillment of SDGs 2, 3, 8, and 9, with a significant influence on the SDG 9, which is to build resilient infrastructure, promote sustainable industrialization and foster innovation. From this, it can understood that for a country to develop and improve its material surroundings and be more industrialized, it must possess a strong economy, and to be able to innovate and adopt new technologies, high-capacity professionals are needed [122].

In the case of environmental factors, it can be observed that their influence is vital for both SDGs 7 and 11; however, in the case of SDG 6 (ensure access to water and sanitation for all) the correlation is, although relatively high, the smallest of the group, which can be related to the fact that the problem of water scarcity is also related to economic factors besides environmental ones [123]. This means that the influence of environmental factors is reduced by the presence of others. On the side of social factors, their relationship with SDGs 4, 5, 10, and 16 is high and similar to the four SDGs. It is also important to mention that these social factors substantially influence the economic situation. Social conflicts within a territory can impact its economy due to the stoppages in economic activities that can arise from social demonstrations or protests [124].

The academic literature shows various latent variables to explain entrepreneurial intention [125,126,127] and continuation of entrepreneurship [128,129]. However, this study provides a different view, since it uses macro-level indicators to predict the continuation of entrepreneurship, which is relevant to demonstrate the relationship between government efforts to contribute to the SDGs and achieve the competitiveness of a country. Usually, it plans the support of ventures through specific programs that seek to train and give support to said new ventures; however, the conditions for such ventures to be successful are not usually impacted, which is why the evidence of this study helps recognize the need to generate more significant efforts to contribute to the SDGs, and finally, to have an impact on the continuation of entrepreneurship. This survival of enterprises is currently vital for economic recovery after the COVID-19 pandemic.

Finally, the existence of a high correspondence between economic factors and the competitiveness of a country can be observed, as was established at the beginning. This competitiveness has a positive but medium correlation with the continuation of entrepreneurship in a country, which can be explained by the complexity of the Global Competitiveness Index, since it is composed of 12 components, from macroeconomic stability to the quality of education of a country [130]. The influence of other external factors reduces the influence of economic factors.

6. Conclusions

It can be said that the competitiveness index influences the entrepreneurship index. A strong relationship was also found between the competitiveness index and the economic factor of the countries. This leads us to conclude that the economy of this country is the factor that determines the scores of the other two indices mentioned above. On the other hand, it was also observed that the economic factor is influenced by both social and environmental factors, with SDG 9 being one of the most important. Theoretically, it has been proven that open innovation helps accelerate compliance with the SDGs in the different areas analyzed in this paper.

6.1. Theoretical Implications

The continuation of entrepreneurship in a country has been explained from the individual approach through surveys of startups or entrepreneurs, using latent variables that can explain the dependent variable. However, studies that have taken country-level indicators such as SDG compliance or the competitiveness index to explain the continuation of entrepreneurship are still limited in the academic literature. As a novelty, a correlational model has been proposed to explain the relationship between the mentioned variables. It is helpful to continue reproducing this model with the most recent values of the reports, to corroborate that the model is robust and allows for predicting the influence on the dependent variable, called continuation of entrepreneurship. This study provides evidence that compliance with the social and environmental SDGs impacts compliance with the economic SDGs, which supports the efforts that a country makes towards such compliance. Another valuable finding is the evidence that compliance with the economic SDGs impacts a country’s competitiveness, which is not usually described in the literature.

6.2. Practical Implications

The results obtained in the study are beneficial for stakeholders because they allow for confirming the influence of different indicators at the macro level that are relevant in a country; specifically, ministries and sustainability centers in said countries can see their efforts supported in the model proposed to obtain more resources to contribute to the achievement of the SDGs. It is usually considered that the achievement of the SDGs is essential because it contributes to the sustainability of a country and a more balanced world, which may be intangible. However, based on what has been demonstrated, it is possible to plan the allocation of more monetary funds that seek to achieve the SDGs, since these goals can have an impact on the country’s competitiveness, and finally, an impact on a country’s entrepreneurship efforts, which during the pandemic have increased significantly and continue to increase as a part of global economic resilience. Companies can also take these results as a reference to establish in their planning to contribute to one of the SDGs, knowing that ultimately this impacts the business continuation of entrepreneurship. Likewise, results should be taken from universities and research centers to transmit evidence of the multiple impacts that new professionals can achieve for companies by focusing their efforts on developing sustainable enterprises.

6.3. Limitations and Future Research

The study is limited because it does not include all countries, since the various indexes and reports do not have complete data for all countries. Additionally, a limitation is the availability of more recent studies with scores of the variables which could be used to develop the modeling through structural equations. The study variables were measured using different methodologies since measurements were carried out by different institutions, which could generate specific concerns about the uniformity of the data. However, in the end, it is correct to have taken measurements from the available sources. Future studies should identify new variables that can explain the continuation of entrepreneurship more broadly. These variables should include the innovation index, sustainability index, and other global reports that may be conceptually related to the evaluated variables.