OBSERVARE
Universidade Autónoma de Lisboa
e-ISSN: 1647-7251
VOL. 16, Nº. 2
November 2025-April 2026
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THE INFLUENCE OF LOCAL ENTREPRENEURSHIP ON SOCIAL DEVELOPMENT: A
CASE STUDY OF SÃO TOMÉ AND PRÍNCIPE IN ACHIEVING THE SDGS
PEDRO CABRITA
pncabrita@gmail.com
With a degree in Management (Universidade Autónoma de Lisboa), a master’s in development
studies (ISCTE-IUL, Portugal) and currently in the PhD programme in International Studies
(ISCTE-IUL), he has been deepening his knowledge, learning, practices and useful tools in
solving some of the world's main sustainable development challenges. It seeks to distinguish
itself through the joint relationship between theory and practice, developing both scientific work
and local, regional, national and international development by participating in projects, trainings,
activities and work teams.  He is currently collaborating with a social solidarity cooperative
(Aproximar) in the management of development projects in the economic, employability and
entrepreneurship sector.
Abstract
This study analyses the role of local entrepreneurship in social development in São Tomé and
Príncipe, focusing on how entrepreneurs can contribute to the Sustainable Development Goals
(SDGs). The research was based on field research, conducted through a structured
questionnaire applied to 100 entrepreneurs, selected representatively based on the latest
national census. The instrument included closed questions on the main social indicators of the
SDGs, allowing comparisons between the entrepreneurial population and the general
population. The questions were adapted to the local context, considering educational and
linguistic limitations, and validated with São Tomé nationals. The results show that
entrepreneurs drive progress in the SDGs, exceeding the population average in 15 of the 24
indicators analysed. The study highlights how entrepreneurial ecosystems can be better
leveraged to promote sustainable development and social inclusion.
Keywords
Local Entrepreneurship, Economic Growth, Sustainable Development Goals (SDGs), Small
Island Developing States (SIDS), International Studies.
Resumo
Este estudo analisa o papel do empreendedorismo local no desenvolvimento social em São
Tomé e Príncipe, analisando como os empreendedores podem contribuir para os Objetivos de
Desenvolvimento Sustentável (ODS). A pesquisa foi baseada em investigação de campo,
realizada por meio de um questionário estruturado aplicado a 100 empreendedores,
selecionados de forma representativa com base no último censo nacional. O instrumento
incluiu perguntas fechadas sobre os principais indicadores sociais dos ODS, permitindo
comparações entre a população empreendedora e a população no geral. As perguntas foram
adaptadas ao contexto local, considerando as limitações educacionais e linguísticas, e
validadas com cidadãos de São Tomé. Os resultados mostram que os empreendedores
impulsionam o progresso nos ODS, excedendo a média da população em 15 dos 24
indicadores analisados. O estudo destaca como os ecossistemas empreendedores podem ser
melhor aproveitados para promover o desenvolvimento sustentável e a inclusão social.
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e-ISSN: 1647-7251
VOL. 16, Nº. 2
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The Influence of Local Entrepreneurship on Social Development: A Case Study of São Tomé
and Príncipe in Achieving the SDGS
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Palavras-chave
Empreendedorismo local, Crescimento económico, Objetivos de Desenvolvimento Sustentável
(ODS), Pequenos Estados Insulares em Desenvolvimento (PEID), Estudos Internacionais.
How to cite this article
Cabrita, Pedro (2025). The Influence of Local Entrepreneurship on Social Development: A Case
Study of São Tomé and Príncipe in Achieving the SDGS. Janus.net, e-journal of international
relations. VOL. 16, Nº. 2, November 2025-April 2026, pp. 364-386. DOI
https://doi.org/10.26619/1647-7251.16.2.20
Article submitted on 19th March 2025 and accepted for publication on 19th August 2025.
JANUS.NET, e-journal of International Relations
e-ISSN: 1647-7251
VOL. 16, Nº. 2
November 2025-April 2026, pp. 364-386
The Influence of Local Entrepreneurship on Social Development: A Case Study of São Tomé
and Príncipe in Achieving the SDGS
Pedro Cabrita
366
THE INFLUENCE OF LOCAL ENTREPRENEURSHIP ON SOCIAL
DEVELOPMENT: A CASE STUDY OF SÃO TOMÉ AND PRÍNCIPE
IN ACHIEVING THE SDGS
PEDRO CABRITA
Introduction
Local entrepreneurship is increasingly recognized for its role in addressing social and
environmental challenges, particularly in developing countries. This study examines the
impact of local entrepreneurship on environmental protection and achieving Sustainable
Development Goals (SDGs) in São Tomé and Príncipe, a small island nation with a unique
context. By analyzing the daily practices of local entrepreneurs, this research seeks to
understand their influence on SDGs related to water, climate, marine life, and terrestrial
life, and ultimately contribute to the broader understanding of how local initiatives can
support international development goals.
Literature review
The role of local entrepreneurship in social development
Entrepreneurship has traditionally been recognized as an economic growth and
innovation catalyst. However, its pivotal role in driving social development is now gaining
significant attention (Urbano et al, 2019). By utilizing local knowledge, networks, and
resources, entrepreneurs enhance economic resilience, strengthen social infrastructure,
and promote inclusive development (Ribeiro-Soriano, 2017). They create jobs, drive
innovation, and empower communities, making entrepreneurship a vital tool for
addressing social disparities and fostering societal progress (Yani, A., & Ausat, A. M. A.
2024).
Entrepreneurial activities often address the immediate socio-economic needs of local
communities while creating opportunities for employment and innovation (Toxirovna,
2024). As previously noted by Audretsch and Keilbach (2004), local entrepreneurs act as
change agents, generating economic dynamism that directly improves the quality of life
in their communities. This is particularly impactful in rural and underserved areas, where
entrepreneurial initiatives often bridge gaps in public services and infrastructure
(Henderson, 2002, Ajide, F. M. 2020, Robertson, et al 2020).
Entrepreneurship also fosters a sense of ownership and empowerment, encouraging self-
reliance within communities (Peredo & Chrisman, 2006, Ademokun, F., & Ajayi, O. 2012.
Amri, et al, 2024.). Small and medium-sized enterprises (SMEs), which are often the
backbone of local entrepreneurship, play a critical role in skill development, enhancing
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e-ISSN: 1647-7251
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and Príncipe in Achieving the SDGS
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human capital, and building community resilience (Morrison, et al, 2017, Bosma et al.,
2020).
At the same time social entrepreneurship, a specialized form of local entrepreneurship,
aims to tackle societal challenges such as inequality, unemployment, and limited access
to essential services (Phillips et al, 2015, Phan Tan, L. 2022). With this, social
entrepreneurs establish ventures that prioritize social value over profit, addressing
systemic issues through innovative solutions (Mair and Marti 2006). For instance,
initiatives focusing on marginalized groups, such as women (Assaf, A. 2024), youth (Ong,
2021), and people with disabilities (Ortiz, 2021), not only create economic opportunities
but also promote social inclusion and cohesion (Sundin, 2011).
In the broader context of social development, social entrepreneurs often collaborate with
local governments, NGOs, and community organizations to amplify their impact
(Kovanen, 2021). Their work directly contributes to achieving societal goals, including
the Sustainable Development Goals (SDGs), by addressing social inequities and fostering
inclusive growth (UN, 2015).
Additionally, local entrepreneurship plays a vital role in preserving and promoting cultural
heritage (Brinia, et al, 2024). Entrepreneurs leverage traditional knowledge and local
resources to develop businesses that celebrate (Mars, 2022) and sustain cultural
identities (Cohen & Winn, 2007). This is particularly relevant in regions with rich cultural
histories, where entrepreneurship can serve as a bridge between modernization and
heritage preservation (Lyon & Sepulveda, 2009).
Despite its potential, the impact of local entrepreneurship on social development faces
significant challenges, such as limited access to capital (Odeyeme, et al, 2024),
inadequate infrastructure (Ratten, V., 2023), and unsupportive policy environments can
hinder the growth and influence of local businesses (Bruton et al., 2010). Moreover, while
entrepreneurship can promote inclusivity, uneven access to entrepreneurial opportunities
may inadvertently reinforce social inequalities (Welter et al., 2017).
Empirical evidence underscores the connection between local entrepreneurship and social
development (Buratti, N., Sillig, C., & Albanese, M., 2022). In developing regions,
entrepreneurial ventures often drive economic diversification, reduce unemployment,
and empower vulnerable populations (Naudé, 2010). For instance, microfinance
initiatives in Africa and South Asia have enabled individuals, particularly women, to start
small businesses, significantly improving household incomes and overall community well-
being (Yunus, 2020). Case studies from Latin America further illustrate how community-
based enterprises contribute to sustainable resource management and social equity
(Peredo & McLean, 2006, Batista et al, 2022). These examples highlight the
transformative potential of entrepreneurship in addressing both social and environmental
challenges.
Key contributions of local entrepreneurship to social development include:
Economic Empowerment and Job Creation: Entrepreneurship empowers
marginalized communities by creating jobs, increasing income levels, and improving
living standards. Small and medium-sized enterprises (SMEs) are often the primary
drivers of economic activity in underserved areas, providing opportunities that uplift
JANUS.NET, e-journal of International Relations
e-ISSN: 1647-7251
VOL. 16, Nº. 2
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The Influence of Local Entrepreneurship on Social Development: A Case Study of São Tomé
and Príncipe in Achieving the SDGS
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entire communities (Kulmie et al, 2023, Adenutsi, 2023, Enaifoghe, & Vezi-Magigaba,
2023).
Social Inclusion and Equity: By breaking down systemic barriers to economic
participation, entrepreneurship fosters inclusivity and equity. Initiatives led by women,
youth, and minority groups often address societal issues such as education, health, and
gender equality, while driving economic participation (Khan et al, 2023, Prasetyo et al,
2023, Williams, T. W. (2024).
Innovation for Social Progress: Local entrepreneurs develop innovative solutions
tailored to the specific needs of their communities. From affordable healthcare to
renewable energy projects, entrepreneurial efforts drive technological and social
innovation, directly contributing to broader societal goals (Kostakis and Tsagarakis, 2022,
Si, et al, 2023, de Lucas Ancillo and Gavrila 2023).
Local entrepreneurship plays a crucial role in driving both economic and social
development, by fostering innovation, creating job opportunities, and promoting social
inclusion, local entrepreneurs help build resilient and empowered communities.
Entrepreneurship plays a crucial role in driving social development, particularly in regions
facing economic and social challenges (Méndez-Picazo, et al 2021, Aljuwaiber, 2021, Anh,
et al, 2022). By promoting like already refereed innovation, creating job opportunities,
and addressing pressing societal needs, entrepreneurship becomes a key factor in
achieving sustainable development, contributing to employment generation and
livelihood enhancement, especially in underserved areas where small and medium-sized
enterprises (SMEs) form the foundation of local economies (Rumasukun and Noch, 2023).
Research has shown a strong correlation between entrepreneurial ventures, reduced
poverty levels, and improved living standards (Si et al, 2021).
Beyond its economic impact, entrepreneurship fosters social inclusion and strengthens
community resilience, by focusing on inclusivity, entrepreneurial ventures create
opportunities for marginalized groups such as women, youth, minorities and cultural (Qu
and Zollet, 2023). For instance, women-led enterprises are often associated with
increased household incomes and greater investments in education and healthcare, while
entrepreneurial activities help build networks that enhance trust and cooperation within
communities (Okolie et al, 2022, Simba et al, 2023).
By addressing local systemic barriers and fostering supportive ecosystems,
entrepreneurship can play a key role in achieving both local and global social
development goals, ensuring sustainable and inclusive progress for future generations.
Entrepreneurship for the Social Dimension SDGs
Focusing on the impacts of entrepreneurship on social development, which can be defined
as a condition of progress, equity, and inclusion that enables individuals and communities
to achieve their full potential, entrepreneurship has referred before garnered significant
attention. This is due to the increasing emphasis on social impact businesses and
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e-ISSN: 1647-7251
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practices that aim to address societal challenges, such as poverty, inequality, and access
to education and healthcare, while fostering innovation and economic growth.
However, the understanding of how local entrepreneurial initiatives can address grand
societal challenges, often framed through frameworks like the UN Sustainable
Development Goals (SDGs), it’s not clear, creating the opportunity of studying more the
real impact of local entrepreneurs on solving local problems that are a world concern.
Among the 17 SDGs identified (2015), the social dimension encompasses goals aimed at
promoting equity, justice, and well-being, such as eradicating poverty, ensuring quality
education, achieving gender equality, and reducing inequalities, and can be represented
by:
SDG 1 (No Poverty): Aims to eradicate poverty in all forms by 2030, focusing on
income deprivation, access to basic services, and resilience to shocks. Key strategies
include social protection systems, equitable resource access, and climate adaptation.
SDG 2 (Zero Hunger): Seeks to end hunger and malnutrition while promoting
sustainable agriculture. Targets include improving food access, doubling small-scale
farmers' productivity, and enhancing agricultural resilience.
SDG 3 (Good Health and Well-Being): Focuses on reducing preventable diseases,
improving healthcare access, and addressing health disparities. Goals include
lowering maternal and child mortality and combating epidemics.
SDG 4 (Quality Education): Ensures inclusive, equitable education and lifelong
learning opportunities. It targets eliminating education disparities and promoting
global citizenship.
SDG 5 (Gender Equality): Aims to empower women and girls by eliminating
discrimination, violence, and harmful practices while ensuring equal opportunities in
leadership, education, and healthcare.
SDG 10 (Reduced Inequalities): Addresses economic and social inequalities within
and among nations by promoting inclusion, equal opportunities, and fair resource
distribution.
These SDGs are essential for fostering social development by addressing critical issues
such as poverty, inequality, education, health, and gender equity. They aim to create
inclusive societies where everyone has access to opportunities, resources, and services
necessary for a dignified life. By prioritizing social justice, equality, and empowerment,
these goals lay the foundation for resilient and cohesive communities, ensuring a fairer
and more equitable future for generations to come.
São Tomé and Príncipe context
The decision to focus on a case study led to the choice of field research, as it allows for
the collection of specific data and a deeper understanding of the actual conditions on the
ground. This approach then prompted a reflective process, during which various regional
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options were considered, ultimately leading to the selection of o Tomé and Príncipe for
its alignment with the achievement of the SDGs.
The strategy for this research began by identifying the continent where such a study
would have the most relevance. The primary criterion was the Human Development Index
(HDI), a key indicator for measuring societal development (OWID, 2024). The aim was
to target a region with significant development challenges, as this would increase the
potential impact of the study’s conclusions, given the pressing economic, social, and
environmental issues (Ballew, et al. 2019).
Upon reviewing the HDI data, it was clear that Africa, with 28 of the 33 lowest-ranked
countries in 2024 (OWID, 2024), faced the greatest difficulties. Given Africa's vast size
of 30,370,000 square kilometers, the diversity of its cultures, societies, and geography
is immense (Barros, 1991). This necessitated the search for a cultural group with
similarities to the Portuguese language and customs, which would ease the field research
process and provide richer, more intimate data collection.
This criterion led to the selection of the Portuguese-speaking African Countries (PALOP),
which include Cape Verde, Guinea-Bissau, Angola, Mozambique, and São Tomé and
Príncipe. After evaluating the geographical, political, economic, social, and environmental
conditions of these five countries, it was clear that a smaller nation would facilitate more
effective data collection and analysis. Consequently, Guinea-Bissau was excluded due to
political instability, leaving Cape Verde and São Tomé and Príncipe as the main options.
Analyzing UN reports on SDG performance for both countries revealed that São Tomé
and Príncipe, with its smaller geographic size and three islands compared to Cape Verde’s
nine, was better suited for field research.
UN reports were chosen for this analysis because they offer a comprehensive, reliable,
and regularly updated overview of efforts to address global challenges (UNSDCF, 2023).
São Tomé and Príncipe, an island nation in the Gulf of Guinea off Central Africa’s west
coast, is made up of two main islands, São Tomé and Príncipe, located 140 kilometers
apart and about 250 kilometers from Gabon (Atlas, 2011). With a population of
approximately 204,454 (2018), São Tomé and Príncipe is the second least populous
country in Africa and the smallest Portuguese-speaking country (CIA, 2023). Although
classified as an underdeveloped country, it is expected to be reclassified as a middle-
income nation by the UN by 2024 (UN, 2020).
STP's Social Reality
Despite some progress in certain socioeconomic indicators, São Tomé and Príncipe
continue to face persistent social inequalities. Poverty remains widespread, with many
families dependent on subsistence farming. While access to healthcare and education has
improved, these services are still limited, especially in rural areas. The gap between
urban and rural regions intensifies disparities, with services and opportunities
concentrated in the capital, São Tomé (WBG, 2024).
The healthcare system grapples with challenges such as inadequate infrastructure, a
shortage of medical professionals, and a reliance on external aid. Common health issues
include malaria, respiratory infections, and malnutrition. Although life expectancy has
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risen due to healthcare improvements, progress is still slow (Uhatela, 2022). Education
is a priority, with the government aiming for universal primary education. However, high
dropout rates, a lack of resources, and limited access to higher education hinder the
country’s development prospects. Educational reform is necessary to address these
challenges and equip the population with the skills needed for a modern economy (Luísa,
2022). Since gaining independence in 1975, São Tomé and Príncipe has evolved into a
multi-party democracy, with regular elections indicating relative political stability
compared to other African nations (Sanches, 2022). However, issues like corruption and
inefficiencies in public administration continue to pose challenges. Civil society
organizations play a crucial role in addressing social issues and advocating for greater
transparency and accountability (Violante, 2022). Despite these challenges, o Tomé
and Príncipe benefits from strong social cohesion, which is rooted in its shared cultural
identity and tight-knit communities. This social unity provides a solid foundation for
collective action to tackle developmental challenges and create a more inclusive society
(Berthet, 2012).
Insularity is a key factor in the development of São Toand Príncipe. As a Small Island
Developing State (SIDS), the country faces structural constraints such as a small
domestic market, dependence on imports, vulnerability to external shocks and exposure
to extreme weather events (UN, 2025). These structural conditions shape not only
economic policy but also entrepreneurial practices, forcing local agents to adopt
innovation and resilience strategies adapted to the island context. The public policy
framework in o Tomé and Príncipe is strongly influenced by the 20202024 National
Plan for Sustainable Development, coordinated by the Ministry of Planning, Finance and
Blue Economy (PNDS, 2020). This document establishes economic diversification,
promotion of the private sector and enhancement of the blue economy as strategic
growth priorities. Among the areas identified are tourism, sustainable agriculture,
fisheries, and renewable energy, which are considered drivers of innovation and
employment.
In conclusion, the social landscape of São Tomé and Príncipe is marked by both resilience
and vulnerability. Overcoming its developmental challenges will require targeted policies,
international collaboration, and the empowerment of its people to fully unlock the nation's
potential.
Entrepreneurship in STP
Entrepreneurship in São Tomé and Príncipe is predominantly informal and concentrated
in subsistence activities such as agriculture, handicrafts and local commerce (UNDP,
2022). Studies show that around 80 per cent of businesses in the country are micro and
small, often run by families. These companies face challenges related to limited access
to credit, poor infrastructure and low levels of technical training (African Development
Bank, 2021).
Despite the limitations, there is growing interest in social entrepreneurship, with
initiatives focused on areas such as sustainable tourism, environmental conservation and
renewable energies (Cardoso et al., 2016). Tourism is one of the most important sectors
of the São Tomé economy, contributing around 11% of GDP and directly employing
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thousands of people (UNSDCF, 2023). The potential of ecotourism, community-based
tourism and the promotion of local culture has attracted both foreign investment and
local entrepreneurial initiatives. Entrepreneurs in areas such as sustainable
accommodation, eco-guiding and traditional cuisine demonstrate the sector's capacity to
generate economic value while contributing to environmental preservation and social
inclusion. These areas have the potential to stimulate the economy and at the same time
address issues of environmental and social sustainability. Entrepreneurs in São Tomé and
Príncipe face several obstacles, including:
Access to finance: Local banks have a low capacity to provide affordable credit, which
limits business expansion (World Bank Group, 2020).
Education and Training: The lack of specific training programmes in entrepreneurial
skills prevents local entrepreneurs from becoming professionals (UNESCO, 2024).
Limited infrastructure: Infrastructure problems, such as access to reliable electricity
and transport, make it difficult for businesses to operate efficiently (UNDP, 2022).
Despite the challenges, São Tomé and Príncipe presents significant opportunities for
entrepreneurship:
Sustainable Tourism: Unique biodiversity and ecotourism potential have attracted
foreign investors and local entrepreneurs (Brito, 2020, World Tourism Organization,
2022).
Agriculture and Agroindustry: Agricultural modernisation projects, including organic
cocoa production, show potential for adding value to local production chains (FAO,
2020).
Digital Entrepreneurship: With increased access to the internet, there are emerging
opportunities for startups in areas such as e-commerce and digital service provision
(Pontes, 2022).
Programmes led by international organisations such as the UNDP and the African
Development Bank have fostered entrepreneurship in São To and Príncipe. These
initiatives aim to improve access to finance, empower entrepreneurs and develop resilient
value chains. In addition, the local government is working to promote policies that
incentivise the private sector and attract foreign investment (UNDP, 2022).
International cooperation plays a structural role in São Tomé's entrepreneurial
ecosystem. The United Nations Cooperation Framework for Sustainable Development in
São Tomé and Príncipe 20232027 (UNSDCF, 2023) sets priorities around green growth,
social inclusion and climate resilience. Programmes from the African Development Bank,
the European Union and Portuguese cooperation have fostered access to finance, training
and infrastructure.
Entrepreneurship in São Tomé and Príncipe faces considerable challenges, but has
enormous potential to boost socio-economic development. Building a stronger
entrepreneurial ecosystem requires integrated efforts in training, access to finance and
improving infrastructure. Fostering entrepreneurship in strategic areas, such as
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sustainable tourism and agro-industry, can promote the country's economic growth and
sustainability, in line with the Sustainable Development Goals (SDGs).
Field Research - Methods
SDG indicators
The question, "What is the influence of Local Development due to Entrepreneurship in
achieving the SDGs?" serves as the basis for analysis. To answer it, understanding how
the United Nations assesses progress toward the Sustainable Development Goals (SDGs)
is essential. The UN uses a structured approach with over 230 global indicators approved
by the UN Statistical Commission to measure progress across all 17 SDGs. These
indicators are disaggregated by factors such as gender, age, location, and economic
status to ensure inclusivity. Progress is summarized in reports like the Global Sustainable
Development Report (GSDR) and the annual SDG Progress Report, which highlight
advancements, gaps, and priority areas. Member states also present Voluntary National
Reviews (VNRs) during the High-Level Political Forum (HLPF), outlining national progress
and challenges.
Data for these reports is collected through partnerships with organizations such as the
OECD, World Bank, IMF, and UN agencies like UNICEF and UNESCO. Countries adapt
global indicators to local contexts, with national statistics agencies playing a key role.
The UN has also embraced technologies like big data and satellite imagery to improve
data collection in challenging regions. A public database provides detailed statistics for
follow-ups at global, regional, and national levels. Tools like the SDG Index and
Dashboards visually rank countries' performances using a "traffic light" system, while
SDG Trend Panels track whether countries are on track to meet goals by 2030 based on
historical growth rates. The HLPF serves as the main platform for reviewing SDG
progress, fostering discussions on challenges, best practices, and shared experiences.
Image 1. SDG indicator panels SDG indicator panels
Source: UN SDG Progress Report, 2024
Review of indicators
The UN's comprehensive system for tracking SDG progress faces significant challenges,
particularly in the context of entrepreneurship and its impact on achieving the SDGs.
Despite the robust global indicators, reports, partnerships, and innovative monitoring
technologies employed by the UN, there are notable data gaps that hinder comprehensive
comparative analyses.
In São Tomé and Príncipe, which ranks 118th out of 167 countries with an overall SDG
score of 63, the situation is particularly challenging. The country faces major risks and
stagnant progress in several social SDGs, including SDG 1 (No Poverty), SDG 2 (Zero
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Hunger), SDG 3 (Good Health and Well-being), SDG 4 (Quality Education), SDG 5
(Gender Equality), and SDG 10 (Reduced Inequalities).
The lack of specific data on entrepreneurs presents a significant obstacle in understanding
their role in environmental protection and broader SDG achievement. To address this
gap, a focused approach on collecting data from entrepreneursdefined as individuals
or groups running operational businesses as their primary income sourcehas been
proposed.
This methodology aims to enable a comparative analysis between entrepreneurs and the
general population, providing insights into how local entrepreneurship influences
environmental protection and contributes to SDG achievement in São Tomé and Príncipe.
Image 2. Indicator dashboards of São Tomé’s People SDG 1, 2, 3, 4 and 5 in 2024
Source - UN SDG Progress Report 2024
The methodology was grounded in the Sustainable Development Report 2024 (UN, 2024)
and focused on identifying two indicators for each SDG with the poorest performance
across two dimensions. This selection of the two weakest indicators aligns with the
research objective of analyzing solutions to global challenges. By targeting the indicators
with the worst outcomes, any improvement will be more apparent. In contrast, using
indicators with average or positive results would limit meaningful comparisons.
The following indicators were selected for the four environmentally focused SDGs:
Table 1. Dashboards of São Tomé’s SDG 1, 2, 3, 4, 5 and 10 in 2024
Source - Data organized by the Author based on data from UN SDG Progress Report 2024
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In this table, it should be noted that the indicator ‘Traffic deaths (per 100,000
population)’, which in the 2024 report appears with a rating of ‘Moderately Improving’
and a trend of ‘On track or Maintaining’, was initially chosen because in the 2023 report
it had values for the ‘Major Challenges’ rating with a trend of ‘Decreasing’, having values
of 27.9 in 2019 data, making it one of the worst indicators of SDG 3 in STP, a situation
that has seen an extremely positive evolution, changing to the current values. This
improvement was only made public after the field investigation, which meant that the
indicator could not be changed, so we are keeping the same indicator, which can be
analysed.
Research Methodology and Analysis
Based on the identified indicators and the absence of national data on entrepreneurs in
São Tomé, it was determined that documentary analysis would not be feasible,
necessitating field research to gather the required data for comparison. Various data
collection methods were considered, including direct observation, interviews,
questionnaires and surveys, focus groups, participant diaries, and ethnographic
approaches.
Given the constraints of a 15-day timeframe for fieldwork and the need for nationally
representative data, the use of a questionnaire was deemed the most suitable approach.
This method not only facilitated efficient data collection but also allowed for brief direct
observations of working conditions.
To ensure an equitable and representative analysis, a sample size of 100 respondents
was established, enabling robust future analyses. The distribution of entrepreneurs to be
surveyed was determined based on population data from the most recent census (2017).
Table 2. Coverage plan for sectoral and regional diversity in the purposive sample for a
population of n=100
Source - Data organised by the Author based on data from STP census 2017
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The questionnaire was structured into four sections (annexes) to provide a
comprehensive understanding of the reality:
1. Description of the Respondent: Collected individual data regarding personal and
family contexts to enable generic comparisons between groups.
2. Description of the Business: Gathered information about the entrepreneur’s
organization to facilitate comparative analysis between different businesses.
3. Closed-Answer Questions on the SDGs: Used limited-response options to
quantitatively measure trends and assess progress on the selected SDGs.
4. Open-Ended Questions on the SDGs: Allowed unlimited responses to qualitatively
capture respondents’ opinions and perspectives on the SDGs.
For the closed-response section, adjustments were made following consultations with
São Tomense nationals to accommodate the country’s low education levels. The
questions were adapted for clarity and simplicity, with each entrepreneur required to
answer two questions for each SDG indicator:
Whether the current situation could be categorized as "Yes," "No," or "More or less."
Whether the situation since becoming an entrepreneur had "improved significantly,"
"improved slightly," "remained the same," or "worsened."
Responses were compiled and assigned values, allowing an average value to be
calculated for each indicator. These averages, divided as necessary, corresponded to the
predefined indicators established by the UN. The resulting values formed the basis for
subsequent analyses.
Table 3. Question values per answer of the survey
Source - Data organized by the Author based on data from UN SDG Progress Report 2024
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These values were selected to enable a consistent and well-founded basis for analysis.
By calculating averages, the results could be categorized into the following response
groups for further interpretation.
Table 4. Answers values per answer of the survey
Source - Data organised by the Author based on data from UN SDG Progress Report 2024
The two questions for each indicator had to be adjusted to preserve the objective of the
indicator and at the same time align with local reality, vocabulary and level of knowledge.
This change was necessary to ensure that entrepreneurs understood the question being
analysed and that the questionnaire could continue uninterrupted. Some of the questions
were changed in order to preserve the original meaning of the question, even if they
were referred to in alternative ways. With this adaptation, it should be noted that in the
first two questions it was necessary to convert from dollars to dobras, the national
currency of STP. In the case of SDG indicator 5, the two questions ‘Ratio of average years
of schooling received between women and men (%)’ and ‘Ratio of labour force
participation rate between women and men (%)’, due to their similar placement of the
question, mainly changed the theme to ‘Should men and women have the same
opportunities at school and at work?’, thus managing to assess together these which had
the same results in the UN report. After a first adaptation, the questionnaire was also
presented to the São Tomenses to validate the perceptibility and suitability of the
questions, which after a final revision resulted in the version used.
To enable comparison between the two dashboards, an analysis system was developed
to assess progress based on rating and trend levels. This system evaluates 12
parameters, reflecting the evolution of levels within the available options. The evolution
can be categorized as negative, neutral, positive, or not applicable. For positive and
negative progress, the difference may involve three parameters or an improvement of 1,
2, or 3 levels.
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Table 5. Questions adapted based on the dashboards of São Tomé’s SDG 1, 2, 3, 4 and 5 in
2024
Source - Data organised by the Author based on data from UN SDG Progress Report 2024
Table 6. Analyse system to compare the evolution according to rating and trend levels
Source Data organised by the Author based on data from UN SDG Progress Report 2024
Validity of the results
The validity of the results may be affected by the specific focus on entrepreneurs as a
distinct population group, which may not fully align with broader population-level
indicators. Additionally, differences between the original indicator criteria and those
adapted for this study could limit the comparability of the datasets.
Nevertheless, these findings provide valuable insights into the entrepreneurial ecosystem
and its dynamics. They offer a detailed profile of entrepreneurs, emphasizing their unique
challenges and contributions. While the results may not be entirely generalizable to the
broader population, they highlight the significant role of entrepreneurship in addressing
societal challenges and advancing development objectives. This perspective enriches
discussions on the potential of entrepreneurship as a driver of social progress, particularly
in the context of the Sustainable Development Goals (SDGs).
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Results and Discussion
Table 7. Comparison of Dashboards of São Tomé’s SDG 1, 2, 3, 4 and 5 results
Source - Data organised by the Author based on data from UN SDG Progress Report 2024 and
field research survey results
SDG 1 - No Poverty
Comparing the evolution of ODS 1, it is possible to see that the two indicators, associated
with the amount received in terms of remuneration $2.15 or $3. 65/day , had a similar
rating and trend, being Major Challenges in the case of the rating and Stagnating in the
case of the trend, showing that this remains a major challenge with no great prospect of
positive development for the general population. These values are quite different from
those achieved by the entrepreneurial population, which obtained SDG Achieved for both
indicators, with regard to the trend of development, the difference being that for
remuneration of $2.15, the value obtained was ‘On track or Maintainingand for $3.65
‘Moderately Improving’. These figures allow us to make a comparison and show that in
terms of rating there was a difference of 3 levels, thus obtaining the most positive
evolution possible, and in terms of trending, for the first indicator the evolution
maintained the evolution of 3 levels, while the second indicator had 2 levels. This
evolution allows us to understand that, on average, entrepreneurs receive the amount
indicated by the UN as an indicator for getting out of the poverty line. This evolution
allows us to understand that, on average, entrepreneurs receive the amount indicated
by the UN as an indicator for getting out of the poverty line. This result, when compared
to the population, can lead us to conclude that because they are responsible for their
own income and profits, they are able to earn more than when they are employed and
even more so when they are unemployed. These figures also allow us to reflect that if
there were more incentives for entrepreneurship, more entrepreneurs might emerge,
which could increase the amounts received from the general population. Despite these
positive indicators, the drop in the trending from the first to the second indicator indicates
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that there is a drop in the amounts received between wage brackets, revealing that
although it is positive, it does not obtain the amounts necessary to end poverty, and may
indicate that although it is positive, the guarantees of this value being stable are not
secure.
SDG 2 - Zero Hunger
In the second SDG, related to combating hunger, the indicators in the UN report show
values for the indicator related to nutrition associated with the question ‘How many meals
do you eat a day? with a rating of ‘Significant Challenges’ and a trend of ‘Moderately
Improving’, while for the indicator associated with the efficiency of production and
consumption of products to avoid inefficiency and waste, with the adapted question ‘Do
you know if the products you consume are sustainable?’, it had a rating of ‘Major
Challenges’ and a trend of ‘Decreasing’, proving to be a growing problem in o Tomé
and Príncipe. These figures, when compared with those of the entrepreneurial population,
obtained the same results in the first question, i.e. ‘Significant Challenges’ for the rating
and ‘Moderately Improving’ for the trending, with a neutral evolution, while in the second
indicator of this SDG, the figures were SDG Achieved for the Rating and ‘Moderately
Improving’ for the trending, representing a positive evolution. This evolution, seen in
detail, was neutral for both indicators of the first indicator, but saw an evolution of 3
levels in the rating and 2 levels in the second indicator. This evolution can be interpreted
as the fact that, in terms of food, there is not a great deal of variation between the target
populations, possibly due to the reality of food in STP, which represents a great difficulty
to overcome, but in terms of the quality of the products consumed, we can see that being
an entrepreneur means that there is greater concern and the possibility of buying more
sustainable products.
SDG 3 - Good health and well-being
With regard to SDG 3, the indicators for the general population are data associated with
the rate of motor vehicle accidents with the question ‘Have you ever had a driving
accident?’ and with the question of access to health care with the question ‘Do you have
access to health services?’ The UN report's figures for the driving question were
‘Challenges Remain’ but with a trend of ‘On track or Maintaining’, while for access to
health care they were Major Challenges’ with a trend of ‘Moderately Improving’. As for
the values for entrepreneurs, for the rating of driving accidents they showed ‘Major
Challenges’ and a trend of ‘Moderately Improving’, while for access to healthcare they
showed ‘SDG Achieved’ and ‘Moderately Improving’. These results, when comparing the
values for the general population with the entrepreneurial population, show a negative
evolution of 2 levels for the rating and 1 level for the trending, showing that the
entrepreneurial population not only has more accidents than the general population, but
also a more negative tendency not to contribute to solving this problem. Part of these
figures can be explained by the greater need for transport, especially on an individual
level, to keep businesses running, whether it's dealing with their own supplies and
resources or travelling to sales, and with this need the number of journeys increases and
with it the likelihood of accidents. As for the indicator relating to access to health care,
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comparing the ratings of the report with that of the investigation, it improved by 3 levels,
and in the trend it maintained the same level. This positive evolution in the rating and
neutral evolution in the trend can be explained by the entrepreneurial population's
greater access to and ability to use health services, which, linked to the SDG1 indicator
in which it is perceived that they have better financial conditions, may make it easier for
them to use health services.
SDG 4 - Quality education
For SDG 4 - Quality Education, both the indicators marked ‘Do you have carers at any
pre-schools?’ and ‘How literate are you?’ show ‘Major Challenges’ in the 2024 report in
terms of rating and ‘Information Unavaiable’ for the trend. When questioned, the
entrepreneurial population obtained ‘SDG Achieved’ ratings for both indicators and ‘On
track or Maintaining’ ratings for the trend. For the first indicator of this SDG (carers at
any pre-school), they obtained ‘Moderately Improving’ and for ‘How literate are you?’
they obtained On track or Maintaining’. These values, when compared to the target
group, had a positive evolution of 3 levels for both indicators in the rating question and
as the trend did not have determined values, an inconclusive analysis was obtained,
however, given that for both indicators the trend presented represents the path of
progress and/or resolution of the SDG, it can be said that these are satisfactory and
positive values when compared to the other more negative trend options. This evolution
shows greater access to education services by the entrepreneurial population and their
families, sometimes benefiting the communities themselves and wider family circles.
SDG 5 - Gender equality
With initial values for the two SDG Gender Equality indicators of ‘Major Challenges’ in the
case of ‘Have you done any family planning?’ and ‘Significant Challenges’ in the case of
‘Should men and women have the same opportunities in school and labour?’ and a trend
of ‘Stagnating’ for both indicators, this SDG generally presents a delayed and challenging
outlook for resolving the current challenges. With regard to the entrepreneurial
population, the rating and trend values were the same for each indicator, with ‘SDG
Achieved’ and ‘On track or Maintaining’ representing full fulfilment of this goal. These
results allow us to compare the general population with the entrepreneurial population
and show that the entrepreneurial population has a difference of 3 levels on a positive
scale in terms of the rating of the indicator ‘Have you done any family planning?’ and for
the remaining 3 indicators a positive evolution of 2 levels. These results show that the
entrepreneurial population, for reasons possibly linked to their knowledge of the
importance of business planning, also end up planning their family life, resulting in a
more constructive structure and development of their families, rather than simply a lack
of planning, thereby achieving decisive results for all other spheres of personal life. In
terms of women's access to the same educational and work opportunities, entrepreneurs
show an openness and concern for gender equality, seeking a society that is equal despite
gender. Both indicators together are differentiated tools, but with extremely positive
indicators through the lens of the entrepreneurial community.
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SDG 10 - Reduced Inequality
Analysing the initial indicators for the general population of o Tomé and Princípe, we
found two indicators, ‘Do you feel there are equal opportunities?’ and ‘Do you feel there
is equal access?’ with equal values both in terms of rating (Major Challenges) and
trending (Information Unavaiable), which does not allow for comparison in this second
parameter. On the entrepreneurs' side, we can see that in the first indicator the result
was “Challenges Remain” with a trending of “Moderately Improving”, representing an
evolution of two positive levels in the rating, while in the second indicator the evolution
was one positive level, moving to “Significant Challenges”. Although this progress is lower
when compared to other SDG indicators, it is still a positive comparison when analysing
the entrepreneurial population, because although their values are still a reality and a
population that has challenges well represented in their day-to-day lives, they end up
being a target group that has more opportunities and seeks to ensure that their workers
also have fair and comparable opportunities and access. This evolution can be related,
as contextualised above, to the level of broad knowledge of the difficulties faced by the
community, customers and suppliers and the search for solutions to their reality based
on other realities.However, the distance between the indicators and the fulfilment of the
objectives also makes it difficult to resolve these challenges, which in many ways go
beyond the physical aspect and also include the political aspect of rights.
Influence of local entrepreneurs in solving global social problems
By cross-referencing the indicators of the six SDGs analyzed in relation to social
development, it becomes possible to comprehensively assess the influence of local
entrepreneurs in addressing local problems with global significance and priority. From
this analysis, it is evident that 10 out of the 12 rating indicators reveal that the
entrepreneurial population performs more positively compared to the general population.
In terms of trends, five of the 12 indicators show positive progress, while four are marked
as "N/A" due to the lack of comparable data from the general population report. When
evaluating the 24 indicators used, 15 exhibit more positive outcomes, three remain
unchanged, four are inconclusive, and only two reflect more negative results. Among the
15 positive indicators, seven demonstrate an improvement of three positive levels, six
show an improvement of two levels, and one reflects an improvement of one level. This
pattern strongly suggests that, on average, the entrepreneurial population enjoys a
higher and continuously improving quality of life compared to the general population,
with the critical differentiating factor being their entrepreneurial engagement and
professional activities.
This analysis highlights that entrepreneurs not only experience a better quality of life in
social terms than the general population but also actively contribute to broader social
development objectives. When juxtaposed with the factors identified in the literature
review, these findings underscore the transformative role of entrepreneurship in
empowering marginalized communities. By creating jobs, increasing income levels (SDG
1), and improving living standards (SDGs 2, 3, and 4), entrepreneurs begin by uplifting
themselves and their immediate circles. Through breaking down systemic barriers to
economic participation, entrepreneurship fosters inclusivity and equity (SDGs 5 and 10),
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enabling these individuals to act as local agents of change. They develop and implement
innovative solutions tailored to their communities' unique needs, driving social and
economic progress.
This case study of São Tomé and Príncipe (STP) serves as a compelling example of how
the entrepreneurial population effectively mitigates personal and community challenges.
Their efforts directly reduce broader community and national issues, bringing these
challenges closer to resolution. From a global perspective, this dynamic positions local
entrepreneurs as critical contributors to addressing problems of worldwide concern. Their
capacity to drive localized, scalable solutions highlights the potential for entrepreneurship
to serve as an integral part of the global strategy to resolve pressing social and
developmental issues.
Recommendations and Future Research
This study's findings highlight local entrepreneurship's significant role in addressing social
challenges and advancing Sustainable Development Goals (SDGs) in São Tomé and
Príncipe. Based on the results, several recommendations can be made to amplify the
positive impact of entrepreneurship on social development:
Strengthen Entrepreneurial Ecosystems: Governments and international
organizations could and should create policies and frameworks that facilitate access
to financial resources, training, and technical support for entrepreneurs. Targeted
efforts to develop infrastructure and reduce bureaucratic barriers can further
empower local entrepreneurs.
Promote Inclusive Entrepreneurship: Initiatives should focus on engaging
marginalized groups such as women, youth, and rural populations. Tailored programs
can provide these groups with the skills and resources needed to start and sustain
businesses, reducing inequalities and fostering social inclusion.
Enhance Education and Training: Integrating entrepreneurial education into formal
curricula at various educational levels and offering community-based training
programs can build a culture of innovation and problem-solving, directly addressing
SDG 4.
Encourage Sustainable Practices: Policies and incentives that promote sustainable
entrepreneurship, such as green technologies and eco-friendly practices, should be
prioritized to address pressing environmental and social issues.
Leverage Digital Transformation: Expanding access to digital tools and technologies
can enable entrepreneurs to scale their businesses, access new markets, and foster
innovation, particularly in underserved areas.
Future research could explore the influence of entrepreneurship on social development
in similar developing island nations, enabling cross-contextual analysis and the
identification of best practices. Additionally, studies focusing on specific sectors, such as
agriculture, tourism, and renewable energy, could provide deeper insights into how these
industries drive sustainable development in local contexts. Longitudinal research tracking
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the long-term impact of entrepreneurship on social and economic outcomes would offer
valuable data for shaping policies and interventions. The integration of technologies like
big data, machine learning, and geographic information systems (GIS) could further
enhance the understanding of entrepreneurial impacts at both micro and macro levels.
Moreover, future studies should examine the intersectionality of gender, ethnicity, and
socioeconomic status to develop more nuanced strategies for fostering inclusive
entrepreneurship.
By addressing these recommendations and pursuing the suggested research directions,
stakeholders can better harness the transformative potential of entrepreneurship to
create more equitable and sustainable societies.
Conclusion
This study underscores the pivotal role of local entrepreneurship in advancing social
development, particularly in the context of o Tomé and Príncipe (STP). By analyzing
the interplay between entrepreneurship and six Sustainable Development Goals (SDGs)
focused on social progress, the findings demonstrate that entrepreneurial activity can
serve as a catalyst for addressing systemic challenges, empowering marginalized
communities, and fostering inclusive growth.
The comparison between the entrepreneurial and general populations reveals that
entrepreneurs, through their professional engagements, tend to achieve better outcomes
in social indicators related to poverty reduction, health, education, gender equality, and
inequality. Notably, they exhibit higher levels of income, improved access to education
and healthcare, and greater commitment to gender equity and sustainable practices.
These outcomes are indicative of the transformative potential of entrepreneurship in
bridging gaps in socio-economic development and driving progress toward the SDGs.
Beyond the immediate benefits to entrepreneurs themselves, the broader impact of
entrepreneurship extends to community and national levels. Entrepreneurs in STP have
proven to be key agents in addressing local challenges, such as unemployment, limited
access to services, and social inequities. By leveraging their innovative capacities and
local knowledge, they contribute to solving problems of global concern within their
localized contexts.
The findings of this research offer valuable insights for policymakers, practitioners, and
scholars. They reinforce the importance of fostering entrepreneurial ecosystems that
prioritize inclusivity, sustainability, and innovation. Moreover, the case study of STP
serves as a microcosm for understanding the global relevance of local entrepreneurship
in achieving sustainable development.
With this, entrepreneurship emerges not only as a driver of economic growth but also as
a transformative force for social progress. By empowering individuals and communities,
fostering equity, and addressing systemic challenges, local entrepreneurs hold the
potential to create more resilient, inclusive, and sustainable societies. This research
underscores the need for continued investment in entrepreneurship as a means of
advancing the SDGs, providing a roadmap for leveraging local solutions to address global
challenges.
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