Entrepreneurial dynamism and sustainability: Unveiling Europe’s economic growth patterns through cluster analysis

Barbara Bradač Hojnik, Karin Širec

Article ID: 3948
Vol 8, Issue 6, 2024

VIEWS - 233 (Abstract) 178 (PDF)

Abstract


This paper highlights the complex relationship between entrepreneurship, sustainable development, and economic growth in 41 European countries, using a reliable K-Means cluster analysis. The research thoroughly evaluates three key factors: the SDG Index for sustainable development, GDP per capita for economic well-being, and the New Business Density Rate for entrepreneurial activity. Our methodology reveals three distinct narratives that embody varying degrees of economic vitality and sustainability. Cluster 1 comprises the financially stable and sustainability-oriented countries of Western and Northern Europe. Cluster 2 showcases the variegated economic and sustainability initiatives in Central and Southern Europe. Cluster 3 envelopes the economic titans with noteworthy business expansion but with the potential for better sustainable practices. The analysis reveals a favourable association between economic prosperity and sustainable development within clusters, although with nonlinear intricacies. The research concludes with a series of strategic imperatives specifically crafted for each cluster, promoting economic variation, increased sustainability, invention, and worldwide collaboration. The resulting findings highlight the crucial need for policy-making that considers the specific context and the potential for combined European resilience and sustainability.


Keywords


entrepreneurship; sustainable development; economic growth; economic diversification; policymaking; European countries; K-Means clustering

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References


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DOI: https://doi.org/10.24294/jipd.v8i6.3948

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