Sustainable Financing

Abstract

In the present era, sustainability is the most important aspect in innovation and financing. While the integration of sustainability into financing and innovation has been adopted in large enterprises but when it comes to SMEs, they are still lagging behind. Sustainable financing plays a significant role in driving the growth and success of small and micro enterprises (SMEs). SMEs, being essential contributors to the global economy, often face numerous challenges in accessing finance. Limited access to capital hinders their ability to expand, invest in resources, and innovate. The chapter aims to explore the importance of sustainable financing in promoting the growth and development of SMEs along with highlighting innovative financing models and challenges they pose. Additionally, the chapter discusses government initiatives, best practices, and case studies that demonstrate successful sustainable financing for SMEs. Finally, it throws light upon the future trends and opportunities in sustainable financing that can further support SMEs in their journey towards economic prosperity.