Nexus among Entrepreneurial Activities, Human Capital, and Economic Growth to achieve Sustainable Development Goals (SDGs): Moderating Role of Financial Development

Keywords: Entrepreneurial Activities, Human Capital, Economic Growth, Financial Development, SDGs


Every economy invests heavily to achieve Sustainable Development Goals (SDGs). SDGs attempt to provide everyone with an access to a high-quality education. The more access to schooling individuals have, the more likely they are to think creatively and take entrepreneurial initiatives. It is vital to invest in personnel to generate economic activities that are suitable for the intricacies of a sustainable economy. The current study attempted to examine the effects of human capital and economic growth on entrepreneurial activities, considering the moderating impact of financial development. The study employed a fixed effects estimation technique to unbalance panel data in various economies using the time period from 2011-2019. The results indicated that human capital, through secondary and tertiary education, significantly and positively stimulates the entrepreneurial activities to achieve SDGs worldwide. In contrast, human capital acquired through primary education doesn't affect entrepreneurial activities positively. Financial development has a positive and statistically significant effect as an explanatory variable, however, the moderating effects of financial development remain poorly grasped. The current study provided policymakers, researchers, and academia with valuable information to foster an environment conducive to entrepreneurial activities in order to achieve the SDGs.


Download data is not yet available.


Arshed, N., Rauf, R., & Bukhari, S. (2021b). Empirical contribution of human capital in entrepreneurship. Global Business Review. Advance online publication.

Baum, J. A., & Silverman, B. S. (2004). Picking winners or building them? Alliance, intellectual, and human capital as selection criteria in venture financing and performance of biotechnology startups. Journal of Business Venturing, 19(3), 411–436.

Becker, G. S. (2009). Human capital: A theoretical and empirical analysis, with special reference to education (3rd ed.). University of Chicago Press.

Bosma, N., Van Praag, M., Thurik, R., & De Wit, G. (2004). The value of human and social capital investments for the business performance of startups. Small Business Economics, 23, 227–236.

Bowen, H. P., & De Clercq, D. (2008). Institutional context and the allocation of entrepreneurial effort. Journal of International Business Studies, 39, 747–767.

Cassar, G. (2006). Entrepreneur opportunity costs and intended venture growth. Journal of Business Venturing, 21(5), 610–632.

Chirwa, E. W. (2008). Effects of gender on the performance of micro and small enterprises in Malawi. Development Southern Africa, 25(3), 347–362.

Dutta, N., & Meierrieks, D. (2021). Financial development and entrepreneurship. International Review of Economics & Finance, 73, 114–126.

Dutta, N., & Sobel, R. S. (2018). Entrepreneurship and human capital: The role of financial development. International Review of Economics & Finance, 57, 319–332.

Eftimoski, D. (2022). On the inconclusive effect of human capital on growth: A new look at extended specifications. Economic Analysis and Policy, 76, 708–727.

Fleming, P. (2005). Education for entrepreneurship: The Irish experience. In P. Vilarinho (Ed.), Leading international practices in engineering entrepreneurship education (pp. 10–21). COTEC.

Haber, S., & Reichel, A. (2007). The cumulative nature of the entrepreneurial process: The contribution of human capital, planning, and environment resources to small venture performance. Journal of Business Venturing, 22(1), 119–145.

Jiménez, A., Palmero-Cámara, C., González-Santos, M. J., González-Bernal, J., & Jiménez-Eguizábal, J. A. (2015). The impact of educational levels on formal and informal entrepreneurship. BRQ Business Research Quarterly, 18(3), 204–212.

Karim, Z. A., Nizam, R., Law, S. H., & Hassan, M. K. (2022). Does financial inclusiveness affect economic growth? New evidence using a dynamic panel threshold regression. Finance Research Letters, 46, Article e102364.

Manigandan, P., Alam, M. S., Alagirisamy, K., Pachiyappan, D., Murshed, M., & Mahmood, H. (2023). Realizing the sustainable development goals through technological innovation: Juxtaposing the economic and environmental effects of financial development and energy use. Environmental Science and Pollution Research, 30(3), 8239–8256.

Martin, B. C., McNally, J. J., & Kay, M. J. (2013a). Examining the formation of human capital in entrepreneurship: A meta-analysis of entrepreneurship education outcomes. Journal of Business Venturing, 28(2), 211–224.

Mentoor, E. R., & Friedrich, C. (2007). Is entrepreneurial education at South African universities successful? An empirical example. Industry and Higher Education, 21(3), 221–232.

Mincer, J. A. (1974). Bibliography and index. In schooling, experience, and earnings (pp. 145–152). National Bureau of Economic Research.

Munir, S., Rao, Z. U. R., & Sana, S. (2019). Financial development, fiscal policy, and economic growth: The role of institutional quality in Pakistan. Journal of Finance and Accounting Research, 1(2), 24–43.

Oosterbeek, H., Van Praag, M., & Ijsselstein, A. (2010). The impact of entrepreneurship education on entrepreneurship skills and motivation. European Economic Review, 54(3), 442–454.

Payab, A. H., Kautish, P., Sharma, R., Siddiqui, A., Mehta, A., & Siddiqui, M. (2023). Does human capital complement sustainable development goals? Evidence from leading carbon emitter countries. Utilities Policy, 81, Article e101509.

Sadiq, M., Moslehpour, M., Qiu, R., Hieu, V. M., Duong, K. D., & Ngo, T. Q. (2023). Sharing economy benefits and sustainable development goals: Empirical evidence from the transportation industry of Vietnam. Journal of Innovation & Knowledge, 8(1), Article e100290.

Sghaier, I. M. (2022). Foreign capital inflows and economic growth in north African countries: The role of human capital. Journal of the Knowledge Economy, 13(4), 2804–2821.

Schultz, T. W. (1961). Investment in human capital. The American economic Review, 5(1), 1–17.

Shidong, L., Chupradit, S., Maneengam, A., Suksatan, W., Phan The, C., & Nguyen Ngoc, Q. (2022). The moderating role of human capital and renewable energy in promoting economic development in G10 economies: Evidence from CUP-FM and CUP-BC methods. Renewable Energy, 189, 180–187.

Thathsarani, U., Wei, J., & Samaraweera, G. (2021). Financial inclusion’s role in economic growth and human capital in South Asia: An econometric approach. Sustainability, 13(8), Article e4303.

Usman, M. A., Ozdeser, H., Çavuşoğlu, B., & Aliyu, U. S. (2022). On the sustainable economic growth in Sub-Saharan Africa: Do remittances, human capital flight, and brain drain matter? Sustainability, 14(4), Article e2117.

Wahrenburg, M., & Weldi, M. (2007). Return on investment in higher education: Evidence for different subjects, degrees and gender in Germany. Goethe University Frankfurt.

Zhu, M. (2023). The role of human capital and environmental protection on the sustainable development goals: New evidence from the Chinese economy. Economic Research-Ekonomska Istraživanja, 36(1), 650–667.

How to Cite
Abaidullah, A., & Basheer, M. (2024). Nexus among Entrepreneurial Activities, Human Capital, and Economic Growth to achieve Sustainable Development Goals (SDGs): Moderating Role of Financial Development. Journal of Finance and Accounting Research, 6(1), 1-27.