Assessment of impacts of mineral raw material resource efficiency on enterprise performance

Abstract

This study investigates how the Mineral Raw Material Resource Efficiency Index affects the production of Small and Medium-sized Enterprises (SMEs) in 18 emerging Asian countries spanning the years 2000–2021. An increase of 1% in the index notably improves SME production, leading to approximately 0.24% in the short term and a more significant 0.27% improvement in the long term. Higher index values signify enhanced resource utilization, reducing waste, and enhancing operational efficiency within SMEs. Challenges include the negative impact of inflation, which is offset by positive influences from government loans. While trade openness initially shows a short-term decline, it becomes positive in the long term as SMEs adapt. The prosperity of SMEs is driven by innovation and the expansion of information and communication technology (ICT). Policymakers in emerging Asian economies are encouraged to align initiatives for SME performance, encompassing mineral resource efficiency, investment in green technology, green financing, and the promotion of environmental, social, and governance (ESG) practices. This alignment aims to foster sustainability and attract conscientious investors.