This study attempts to explore the linkage between green entrepreneurship and the concept of sustainable development in specified ASEAN economies. Analysis looks at both the short-run and long-run dynamics using an Autoregressive Distributed Lag (ARDL) framework. A balanced-panel dataset was constructed with macroeconomic and environmental variables from the World Bank’s World Development Indicators (WDI) over 2005–2020 in six ASEAN countries. The empirical results show a multidimensional response of green entrepreneurship to economic development. Inflation (the GDP deflator) had a positive, statistically significant impact on long-run GDP per capita consistent with Keynesian theory. Natural resource rents were negatively associated with GDP lending support to the “resource curse”. Renewable energy consumption which was also negatively affected GDP in the long run, although perhaps surprising demonstrates the economy is not only going through transitional inefficiencies, but green investments are likely not producing returns in time. Findings refute assumption that green entrepreneurship is a direct mechanism for economic growth. Instead, results point to the requirement of having right policies in place (for example, they need green financing mechanisms, technology transfer and production subsidies) to make a successful transition to bring on sustainability development. Therefore, this research adds to indications that view green entrepreneurship as having duality of driving sustainability, but must have strong institutional assistance in order to accrue benefit of green entrepreneurship for sustainability long-term.