Governmental Supportive Policies for Green Entrepreneurial Activity in Saudi Arabia: An Institutional Analysis

Abstract

In this exploratory study, we analyzed the influence of governmental supportive policies on green entrepreneurial activity in Saudi Arabia, using institutional economics as a theoretical framework. Based on data from reports of the General Authority for Meteorology and Environmental Protection and the General Authority for Statistics, both fixed and random effects models were applied in 21 cities within Saudi Arabia (2014–2018). The main findings show that environmental, innovation, and entrepreneurship governmental supportive policies exert a significantly positive influence on green entrepreneurship. Future implications for policymaking and managerial decisions related to targeted awareness raising and environmental care can be derived from this study.