Investigating the relationship between government support and SMEs’ sustainability through financial and green lenses

Abstract

Purpose To be successful on a global scale, small- and medium-sized enterprises (SMEs) need government support (GS) for innovation, sustainability and creativity. GS has always been a constructive influence on enterprises. This paper aims to examine the role of GS in assessing financial literacy (FL), access to finance (AF) and green value co-creation (GVC) for the sustainability of SMEs. Design/methodology/approach This study’s sample comprises SMEs in Lahore, Pakistan. Data collection started in December 2021 and ended in February 2022. Using convenient sampling, 320 responses were collected from SMEs and included in data analysis. Hypotheses were tested, and model fit was checked through the software AMOS 22. Findings It has been examined that GS plays a pivotal role in acquiring FL, AF and GVC for the sustainability of SMEs. Research limitations/implications Increasing the sample size will give a more demonstrative picture as the population size is quite large. Future researchers should design causal relationships, linking these variables through longitudinal research. Originality/value No study has been conducted on SMEs of developing economies using these variables. This study contributes to the literature by providing a comprehensive model and identifying GSs importance in achieving SMEs’ sustainability through financial and green lenses. This research significantly impacts government policymakers and SMEs by giving them insight into the importance of green practices, financial capabilities and SMEs’ sustainability.

Impacts of external factors on Ethiopia's economic growth: Insights on foreign direct investment, remittances, exchange rates, and imports

“…Previous studies undertaken by Refs. [ 40 , 63 ], and [ 2 , 96 ] have predominantly concentrated on the analysis of foreign remittances in relation to gross domestic product (GDP). The variable related to imports (IM) has been investigated in studies undertaken by Refs.…”

“…Foreign direct investment (FDI) holds immense significance in fostering economic growth, as it stimulates domestic investment, facilitates technology transfer, and creates employment opportunities [ 53 ]. Similarly, remittances, the financial transfers made by migrants to their home countries, have been recognized as a crucial source of income and a catalyst for economic development [ 2 ]. These remittance flows contribute to investment, consumption, and poverty reduction, playing a significant role in shaping national economies.…”

“…[ 1 ], foreign direct investment (FDI) inflows have the capacity to encourage local investment, enable the transfer of knowledge, and generate employment possibilities. In the same vein, it has been acknowledged that remittances, which refer to the monetary transactions initiated by migrants to support their countries of origin, hold significant importance as a vital revenue stream and a driving force behind economic progress [ 2 ]. Remittance flows have the potential to make substantial contributions to investment, consumption, and poverty alleviation, thereby exerting a notable influence on national economies.…”

“…Like many sub-Saharan African countries and emerging economies, Ethiopia aspires to achieve long-term economic growth. However, the forces of globalization and anti-globalization sentiments in specific sectors pose challenges in identifying the drivers of economic growth [ 2 , 20 ].…”

Promoting sustainable development: Multiple mediation effects of green value co‐creation and green dynamic capability between green market pressure and firm performance

“…This implies that the positive impact of GMP on FP may depend on the company's level of GVC . In fact, GVC often acts as a mediating variable in research that explores the relationship between corporate green practices and their outcomes (Aslam et al, 2023; Chang, 2019; Han & Xu, 2021; Shi et al, 2020; Tian et al, 2023; Yahya et al, 2022; Yousaf, 2021). Moreover, the research findings of Tian et al (2023) indicate that GVC act as a mediator in the relationship between environmental protection pressure on firm performance.…”