- Green ventures create jobs, innovate solutions, and enhance resilience amid uncertainty in developing countries
- In Pakistan, female-led sustainable startups generate income, preserve cultural heritage, and contribute to economic progress
As 2025 draws to a close, the global economy faces a period of uncertainty and subdued growth. According to the International Monetary Fund’s October 2025 World Economic Outlook, global growth is projected to slow to around 3.2%, influenced by heightened trade tensions, protectionism, and policy fragmentation. The World Bank echoes this caution, forecasting even weaker expansion at 2.3% amid rising barriers and uncertainty. Emerging market and developing economies (EMDEs), including those in South Asia, Sub-Saharan Africa, and parts of the Middle East, are particularly vulnerable, with downgraded forecasts in nearly all regions due to commodity demand weakness and tighter financial conditions. Yet, within this challenging landscape lies a beacon of opportunity: sustainable entrepreneurship. In developing countries, where traditional growth drivers are faltering, entrepreneurs are increasingly pivoting toward green and sustainable ventures. These initiatives not only address pressing environmental challenges but also foster economic resilience, job creation, and inclusive growth. The United Nations’ Sustainable Development Goals Report 2025 highlights that while only 17% of SDG targets are on track globally, progress in basic services and infrastructure, often driven by innovative local solutions, demonstrates that accelerated change is possible. The year 2025 has been marked by a “global economy in flux,” as described by the IMF. Growth projections have been revised downward due to escalating trade tensions, including new tariffs and policy shifts in major economies. Advanced economies face stagnant demand, while EMDEs grapple with debt pressures and commodity price volatility. In low-income countries, growth is expected to edge up to 5.3%, but this remains insufficient to close gaps with richer nations.
Inflation is easing but persists above targets in some areas, complicating monetary policy. Geopolitical risks, including conflicts and supply chain disruptions, further dim prospects. For developing countries, external financing has tightened, with official development assistance declining. Amid these headwinds, the green transition emerges as a counter-cyclical force. The World Economic Forum’s 2025 report on the green transition estimates a net gain of 9.6 million jobs globally by 2030 from clean energy shifts, even as traditional sectors contract. In developing economies, where youth unemployment is acute, sustainable entrepreneurship can harness demographic dividends while aligning with climate imperatives.
Renewable energy jobs reached 16.2 million worldwide in 2023 (per IRENA and ILO’s 2024 review), with projections for substantial growth in EMDEs as solar, wind, and bioenergy expand. This shift is not just environmental; it’s economic necessity in a slowing world. Sustainable entrepreneurship integrates economic viability with environmental stewardship and social equity. In developing countries, it often manifests as “necessity-driven” innovation: entrepreneurs addressing local challenges like waste management, water scarcity, or energy access while creating livelihoods. Unlike in advanced economies, where sustainability is often a premium add-on, in EMDEs it is intertwined with survival and resilience. Examples include circular economy models recycling agricultural waste into biofuels or digital platforms enabling smallholder farmers to adopt climate-smart practices.
The UN’s 2030 Agenda underscores the sustainable ventures contribute to multiple SDGs, from decent work (SDG 8) to affordable clean energy (SDG 7) and climate action (SDG 13). In 2025, with SDG progress off-track globally, entrepreneurs in the Global South are filling gaps left by slow public investment. Bibliometric studies from 2025 highlight a surge in research on sustainable entrepreneurship in emerging economies, emphasizing digitalization, governance, and innovation as enablers. In resource-constrained settings, these ventures leverage frugal innovation—low-cost, high-impact solutions—to drive growth. A slowing global economy paradoxically amplifies opportunities for green ventures in developing countries. Declining fossil fuel demand and rising commodity costs push diversification, while affordable renewables create new markets.
The green transition could yield millions of jobs. While earlier ILO scenarios projected 24-25 million new jobs by 2030 (net of losses), updated 2025 analyses from the World Economic Forum confirm net gains of 9.6 million, concentrated in renewables, efficiency, and electrification. In EMDEs, where labor forces are young and growing, these jobs offer pathways out of informal employment. Sustainable entrepreneurs are at the forefront: micro-ventures in off-grid solar, eco-tourism, or sustainable agriculture employ locals and build resilience. In Asia and Africa, digital platforms connect entrepreneurs to green finance, amplifying scale.
Falling costs of solar PV and wind make entry barriers lower. In 2025, utility-scale solar is competitive even in subsidy-free markets. International funds, though strained, prioritize climate resilience in EMDEs. There are enormous opportunities abound in circular economies like waste-to-energy, sustainable fashion from recycled materials, or agro-processing reducing food loss. Digital tools e.g. AI for predictive farming or block chain for supply chain transparency democratize innovation.
In Pakistan, entrepreneurs are tackling climate vulnerabilities head-on. Ventures like Algaverse develop CO-capturing bio-fertilizers, while Renewables First promotes solar solutions. Eco-entrepreneurship programs at universities foster youth-led green businesses, from recycled bags to solar installations. Amid economic pressures, these create jobs and reduce import dependence. In the Gulf, diversification drives green entrepreneurship. Saudi Arabia’s Green Initiative and UAE’s net-zero ambitions spur ventures in hydrogen, CCUS, and renewables. Oman and Qatar localize supply chains, creating opportunities in manufacturing solar components. Entrepreneurs here blend oil wealth with green innovation, exporting clean fuels while building domestic ecosystems. These opportunities counter slowdown effects: green sectors are less vulnerable to trade wars and offer export potential in a decarbonizing world. Growing evidence from recent studies (2023–2025) indicates that sustainable entrepreneurship significantly enhances economic performance in developing countries through mechanisms such as job creation, innovation-driven productivity gains, and increased resilience amid global slowdowns.
Green ventures enhance productivity through efficiency gains. In agriculture-dominant economies, sustainable practices boost yields while cutting emissions. Studies show that inclusive green growth can add 1-2% to annual GDP in EMDEs by 2030.
Sustainable entrepreneurship plays a pivotal role in building economic resilience amid the volatility of the 2025 global economy. By fostering diversified ventures that add value locally, it effectively shields developing countries from external shocks such as trade disruptions and commodity price swings. Circular economy models, in particular, drive down import dependencies, strengthen trade balances, and enhance fiscal stability.
Moreover, the jobs created through these initiatives go beyond mere employment figures. They provide superior working conditions, valuable skill development, and pathways to upward mobility. Women and youth stand to gain the most from these opportunities, helping to reduce deep-rooted inequalities and promote inclusive growth. In Pakistan, for instance, female-led sustainable startups in textiles and handicrafts are empowering entire communities, generating income, preserving cultural heritage, and contributing meaningfully to national economic progress. By aligning with SDGs, these ventures mitigate climate risks—critical for vulnerable nations. Reduced deforestation, cleaner energy, and waste management preserve natural capital, foundational for sustained growth.
Empirical evidence from 2025 explains that countries with higher sustainable entrepreneurship indices show faster SDG progress and economic recovery post-slowdown. However, despite opportunities, barriers persist. Green ventures face higher upfront costs and perceived risks. In EMDEs, funding gaps are acute; blended finance and impact investing are growing but insufficient. Weak governance, inconsistent policies, and bureaucracy deter scaling. In many developing countries, green incentives lag. On the other hand, limited access to training and advanced tech hinders innovation. Supply chain dominance by China creates dependencies. Low consumer awareness and preference for cheap, unsustainable alternatives slow adoption. In rural areas, infrastructure deficits compound issues.
In Pakistan, energy shortages and policy instability challenge green startups. Gulf entrepreneurs face competition from subsidized fossils. In a slowing global economy, sustainable entrepreneurship in developing countries is not merely an option. It is an imperative for resilient growth. By creating jobs, innovating solutions, and aligning with planetary boundaries, these ventures offer hope amid uncertainty.
As 2025 ends, the message is clear: investing in green entrepreneurs today builds prosperous, sustainable tomorrows. For nations like Pakistan and Gulf states, leading this charge positions them as future economic powerhouses in a green world.
The author, Nazir Ahmed Shaikh, is a freelance writer, columnist, blogger, and motivational speaker. He writes articles on diversified topics. He can be reached at sir.nazir.shaikh@gmail.com