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This paper contributes to the contemporary scholarly conversation on sustainable entrepreneurship (SE) by empirically evaluating its antecedents and outcomes. It examines whether there is any relation between a nation's SE levels and its progress on sustainable development. In addition, the composition of a sustainable entrepreneurial ecosystem (SEE) is proposed, and its efficacy at macro- and micro-levels is assessed. Extant research suggests a positive relationship between SE and sustainable development, but empirical evidence appears incoherent. Panel regressions were used to test (a) the influence of SE density (share of total firms in the nation) on the nation's sustainable development and (b) the influence of SEE vis-à-vis traditional entrepreneurial ecosystems on the abundance and performance of SE firms. For this purpose, a dataset comprising 5621 SE firms from 76 nations was curated for five years (2018–2022). The results show that a higher density of SE firms is positively related to sustainable development, and a favorable SEE fosters the copiousness and performance of SE firms. Additional analyses demonstrate the robustness of results for alternate methods, different variable measurements, and the moderating role of nations' income levels. The established relevance of SE provides implications for policymakers and practitioners to devise a favorable SEE that engenders sustainable entrepreneurship. • This study examines whether there is any relation between a nation's share of Sustainable Entrepreneurship (SE) and its sustainable development. • The density of SE firms in the nation is found to be positively related with its progress on sustainable development. • To understand what leads to higher density of SE firms in a nation, efficacy of conventional entrepreneurial ecosystems (EE) is tested. National EEs are found to be poor explainers of copiousness of SE firms. • Considering the requirements of SE which may differ from those of conventional entrepreneurship, this study proposes three sustainability elements to be integrated with the EE to develop 'Sustainable Entrepreneurial Ecosystem' (SEE). • Through the assessment of a panel dataset comprising 5621 SE firms from 76 countries over 5 years, it is found that the SEE significantly influences the density and performance of SE firms. [ABSTRACT FROM AUTHOR]