What are the drivers and barriers for green business practice adoption for SMEs?

Abstract

The depletion of natural resources as a byproduct of widespread, global economic growth has urged entrepreneurs to think about the environment when starting or conducting business. However, several of these smaller-sized firms struggle with implementing environmentally conscious business practices, especially Small and Medium Enterprises (SMEs), which represent more than 95% of all private sector firms. This study uses a survey method to assess and better comprehend the key drivers and barriers of green business practices by SMEs in the State of Ohio (USA). Results from our study show that a majority of respondents reported that they have implemented green practices, broadly defined, within their business. The two main drivers for deciding to engage in such practices are internal motivations and the opportunity to obtain a better public image. However, respondents also noted a lack of capital as the central barrier to implementing green business practices. We also observe that smaller firms, and firms located in urban areas, are more familiar with green business practices than larger firms and firms that are located in rural areas. Our results can be used by government and business actors alike, especially in states comparable to Ohio, as a benchmark to consider better strategies, programs, and policies for implementing green business techniques. Overall, this research helps to better discern best practices and ways to develop more prosperous SMEs without undermining the quality of the environment. Supplementary Information The online version contains supplementary material available at 10.1007/s10669-021-09821-3.

The role of environmental incentives in greening the small and medium-sized enterprises: a developing economy perspective

“…, 2016; Yacob et al. , 2019) and it was found that most global pollution (up to 60–70%) is due to the SMEs' environmental impact (IFAC, 2019; Purwandani and Michaud, 2021). Hence, scholars emphasised that the role of SMEs is highly significant in achieving the environmental sustainability agenda in the economy.…”

“…Hence, scholars emphasised that the role of SMEs is highly significant in achieving the environmental sustainability agenda in the economy. GR of the SME sector is predominantly focussed on mere conformity, mainly due to their resource poverty (Purwandani and Michaud, 2021; Salim et al. , 2018; Yacob et al.…”

“…Most corporations do not pursue proactive environmental initiatives (Corsini et al, 2019), whilst developing economies more on reactive strategies (Baah et al, 2020b). Moreover, many SMEs have not paid enough attention to the ecological footprint of the globe (Agan et al, 2013;Testa et al, 2016;Yacob et al, 2019) and it was found that most global pollution (up to 60-70%) is due to the SMEs' environmental impact (IFAC, 2019;Purwandani and Michaud, 2021). Hence, scholars emphasised that the role of SMEs is highly significant in achieving the environmental sustainability agenda in the economy.…”

“…Nevertheless, this expanding trend in green commitment and revealing worldwide is valid for the SME sector and should stimulate their green inceptions to ensure a sustainable world. Scholars emphasised that resource poverty in terms of finances and knowledge hinders the progression towards the green credentials of SMEs (Purwandani and Michaud, 2021;Salim et al, 2018;Yacob et al, 2019). Hence, MBAs help reducing the cost of implementing environmental practices and support capacity building.…”

Flora and fauna diversity in Selangkau forest: A basis for developing management plan of cement industrial complex in East Kalimantan, Indonesia

“…Therefore, there are conflicting interests between economic development versus biodiversity conservation in East Kalimantan, prompting dilemmas in policies and decision making. The development of the cement industry will likely impact the biodiversity in East Kalimantan altogether with habitat destruction, the rarity of biodiversity and overexploitation (Harrison et al 2020 ) Currently, the depletion of natural resources as a negative impact of global economic growth has raised the awareness among the business people to pay more attention to the environment and push them to implement more environmentally friendly practices, although there is still room for improvement to create the best practices for the environment (Purwandani and Michaud 2021). In the context cement industry in East Kalimantan, scientific studies are needed to bridge the gap between the development of the cement industry (along with the mining of limestone quarry) and biodiversity conservation.…”