"Purpose

Entrepreneurship is one of the pillars of economic development and helps to green the economy. This study investigates the factors that affect green entrepreneurship (GE) in small- and medium-sized enterprises (SMEs) in Saudi Arabia.

Design/methodology/approach

Using quantitative modes, this study's findings are based on 334 valid cases from Saudi Arabian SME employees.

Findings

Using path analysis, this study’s findings reveal that green entrepreneurial skills (GES), green opportunities (GOs), entrepreneurial motivation (EM), green incentives (GIs), availability of capital (AoC) and green entrepreneurial self-efficacy (GESE) have positive and significant effects on GE. Moreover, GESE mediates GE's relationships with GES, GOs, EM, GIs and AoC.

Practical implications

This study's findings support the development of green business practices in terms of green business planning, training and skills. The research provides opportunities for green businesses. Policymakers and SME authorities would benefit from this study's findings in producing green goods and services.

Originality/value

This study empirically confirms the role of various factors such as GESE and GE among Saudi Arabian SMEs."