Rethinking Physical Education as a pathway to sport entrepreneurship and sports industry development

Introduction: Physical education plays a fundamental role in sport development, including the sports industry, particularly through the early formation of sports entrepreneurship competencies. Integrating physical education with entrepreneurial learning is therefore essential for strengthening the sports economy Objectives: This study aims to analyze the integration of physical education and sports entrepreneurship as a strategic framework for sports industry development in Indonesia, focusing on how pedagogical approaches in physical education foster entrepreneurial mindsets and enhance students’ capacity to contribute to the sports economy. Methodology: A mixed-methods approach with an explanatory sequential design was employed. The quantitative phase involved 120 students from ten Indonesian universities, while the qualitative phase included ten key informants comprising lecturers, sports industry practitioners, and student entrepreneurs. Data were collected using a standardized questionnaire (Cronbach’s Alpha = 0.879) and in-depth interviews. Quantitative data were analyzed using multiple regression, and qualitative data were examined using Miles and Huberman’s interactive model with triangulation. Results: The findings indicate that integrating physical education and sports entrepreneurship has a positive and significant influence on sports industry development (R² = 0.642; F = 58.214; p < 0.001). Sports entrepreneurship showed a stronger contribution (β = 0.489; p < 0.001) than physical education (β = 0.371; p < 0.05). Qualitative results support these findings, showing that project-based learning and entrepreneurial experiences in sports contexts enhance creativity, innovation, and professional readiness. Conclusions: Integrating entrepreneurial competencies into physical education curricula can enhance graduate competitiveness and support the development of an innovative and sustainable sports industry.