Adoption of Green Practices in Small and Medium Enterprises in Developing Countries

Abstract

Enterprises face increasing pressure to adopt environmentally sustainable processes due to heightened awareness among governments worldwide. In developing countries, small and medium-sized enterprises (SMEs) are particularly influenced by this awareness, prompting them to embrace green practices. This chapter explores the adoption of green business practices in SMEs, the barriers hindering their implementation, their impact on sustainable performance, and strategies to encourage adoption. Through an exploratory qualitative study, the chapter discovered that while many SMEs commit to environmental sustainability, they face obstacles such as lack of capital, insufficient government support, resource constraints, community skepticism, and complex regulations. Despite these challenges, adopting green practices positively affects sustainable business performance. The findings highlight the need for supportive systems to create an environment conducive to sustainability.