<p>This study investigates how green innovation drives enterprise development in Tunisian small and medium-sized enterprises (SMEs), examining the mediating roles of green entrepreneurship and perceived positive social-environmental impact under market turbulence conditions. A quantitative survey was conducted among 135 senior executives from various industries in the Mahdia region of Tunisia. The study employed SmartPLS 4 for structural equation modeling to test the proposed hypotheses, examining direct and mediated relationships between green innovation, green entrepreneurship, social-environmental impact perception, and enterprise development. Results demonstrate that green innovation significantly impacts enterprise development through both green entrepreneurship and social-environmental impact perception as mediators. Green entrepreneurship shows stronger mediation effects on job creation and financial performance, while social-environmental impact perception primarily influences new industry creation. Market turbulence moderates these relationships, strengthening the importance of green practices in uncertain environments. The study is limited to the Mahdia region of Tunisia and specific industrial sectors. Future research should expand geographical scope and include longitudinal analysis to capture dynamic relationships over time. SME managers should prioritize green innovation initiatives, particularly focusing on developing green entrepreneurial capabilities and building positive stakeholder perceptions of their environmental and social contributions. Policymakers should support green innovation ecosystems to enhance economic resilience. This research provides novel insights into the mechanisms through which green innovation translates into enterprise development, particularly highlighting the dual mediation pathways and the moderating role of market turbulence in emerging economy contexts.</p>