<p>Sustainable entrepreneurship (SE) has recently gained global attention due to heightened environmental concerns and institutional pressure specifically in energy-intensive industries like construction. In spite of its relevance, there is scarcity of evidence on such mechanisms through factors such as green supply chain practices, upcycling and innovation affect sustainable entrepreneurship in the context of China’s construction sector. Thus, the present study investigates these relationships in the presence of green leadership as a moderator. Drawing on integrated perspective of stakeholder theory and dynamic capability view, the study tested the model by using PLS methodology. The study gathered the primary data from construction industry employees using survey questionnaires. The results indicated that the Green SC practices, upcycling, and innovation positively associated with SE in the construction industry in China. The outcomes also exposed that green leadership significantly moderates Green SC practices, upcycling, innovation, and SE in the construction industry in China. The study guides the regulators in establishing regulations to improve the SE using effective Green SC practices, upcycling, and innovation adoption.</p>