Global green trends are creating new challenges and opportunities for entrepreneurs worldwide with customers now more environmentally aware and willing to pay extra for green services and products. In considering this phenomenon, the current study focuses on the positive influence of enviropreneurial orientation on the business performance of small firms and explores the mediation effects of green marketing mix and eco-labeling strategies. Drawing upon the natural resource-based view (NRBV) and the dynamic capability view (DCV), we tested our multiple mediation model with a sample of owners/managers of 160 small firms from Bangladesh, with these firms coming from the sectors of trading, manufacturing, and services. To test the study’s hypotheses, we employed the variance-based structural equation modeling (SEM) method, using the partial least squares (PLS) technique. The results reveal that green marketing mix and eco-labeling strategies transmit the effect of enviropreneurial orientation to business performance of small firms. Both strategies are found to be mediators in the relationship between enviropreneurial orientation and business performance of small firms. The study also offers suggestions for future research.

Purpose Sustainable development goals and the climate change agenda are becoming widely promoted topics of research for the 21st century. The role of cities is increasingly recognised as central to investigating these topics. Yet, the field of informal sector entrepreneurship which so many urban entrepreneurs in developing countries depend upon is seldom considered. To redress this imbalance, this study aims to develop a decision model in accordance with institutional theory (IT) and resource dependency theory (RDT) for city managers to deploy. The model identifies and prioritises optimal strategies to address the three areas of sustainability requirements environment society and economy within the study context of Bangladesh. Design/methodology/approach This study used a mixed methods research design. In the qualitative part, the authors identified the three areas of sustainability requirements (i.e. environment, society and economy) and their corresponding strategies involving the informal sector that operates within the urban environment. In the quantitative part, the authors applied fuzzy quality function deployment (QFD) integrated with the 0-1 non-linear optimisation technique to identify optimal strategies. Findings The findings show that strategies such as legitimate frameworks, waste management, allocation of urban public space and training programs contribute in important ways to the three areas of sustainability requirements. Practical implications The proposed decision model will assist policy-makers and city managers to prioritise sustainability requirements and implement optimal strategies to address those requirements. Originality/value Through the integration of IT and RDT, the decision model developed in this study is unique in its application to urban-based informal entrepreneurship in the context of developing countries. The effective application of the fuzzy QFD approach and the optimisation model in the context of urban-based informal entrepreneurship also offers unique contributions to the field of study.