Assessing the role of risk-driven entrepreneurial actions in achieving sustainable development goals 1 and 2 in Africa: does democracy matter?

Abstract

Purpose

This study rigorously examines the complex interplay between entrepreneurial risk-taking and the achievement of sustainable development goals 1 and 2, which focus on eradicating poverty and hunger, respectively. By conducting a comprehensive review of existing literature and empirical data, the research aims to unravel the direct impact of risk-oriented entrepreneurial activities on poverty and hunger alleviation. Moreover, it seeks to investigate the moderating role of democratic governance in shaping these effects within the context of African economies.

Design/methodology/approach

By employing a Panel Smooth Transition Regression (PSTR) model and using annual and balanced panel data for 20 African countries over 21 years, we examine a potential regime switching as an original framework in the analysis of the curvilinear relationship between risk-driven entrepreneurial actions and sustainable development goals 1 and 2.

Findings

Our empirical results confirm the presence of a specific threshold above which risk-oriented entrepreneurial actions proactively tackle poverty and hunger issues. The results also show that entrepreneurship associated with a good level of democracy is the fair tradeoff toward eradicating extreme poverty and hunger by the 2030th United Nations (UN) deadline.

Originality/value

This study offers novel insights into the role of entrepreneurial risk-taking at the country level in achieving sustainable development goals 1 and 2. It advances research on entrepreneurship and sustainable development by demonstrating how a strong risk culture among entrepreneurs might make regions more developed while building on suitable institutional quality.

Citation

Tiba, S., Omri, W. and Chishti, M.Z. (2024), "Assessing the role of risk-driven entrepreneurial actions in achieving sustainable development goals 1 and 2 in Africa: does democracy matter?", Journal of Entrepreneurship and Public Policy, Vol. 13 No. 4, pp. 669-693. https://doi.org/10.1108/JEPP-10-2023-0104