SMALL BUSINESSES DRIVING SUSTAINABLE GROWTH IN THE SPORTS INDUSTRY ECONOMY

Using the ARDL method, this study examines the sustainability of China's sports industry from 1980 to 2021, focusing on the impact of the number of Micro, Small, and Medium Enterprises (MSMEs). The findings show a negative correlation between the number of MSMEs and carbon emissions from sports manufacturing, with a 1% increase in MSMEs leading to a 0.26% and 0.34% reduction in emissions in the short and long term, respectively. The study also finds that increased imports of sports commodities are associated with lower CO2 emissions, highlighting the sustainability benefits of global trade. Conversely, a positive correlation between state spending on sports and CO2 emissions indicates a need for more sustainable investment strategies. Additionally, population growth is linked to higher emissions, underscoring the need for sustainable management practices. The study recommends focusing on supporting MSMEs and startups, adjusting state spending, and utilizing digital technologies to promote a more sustainable sports manufacturing sector in China.