The role that small and medium‐sized enterprises play in sustainable development and the green economy in the waste sector, South Africa

Abstract

AbstractThe South African government is actively promoting small and medium‐sized enterprises (SMEs), particularly in the waste sector, where it is envisaged that the waste sector will contribute to the green economy through SMEs participation in waste management activities. Collectively, SMEs have the potential to exert significant pressure on the environment through the use of finite resources and generation of pollution and waste. Case studies, where interviews and documentations were used as data collection methods, on waste management supply chains are provided. Many SMEs are responding to supply chain pressure in terms of the Broad‐Based Black Economic Empowerment Act and participating in social responsibility activities. However, the majority of SMEs are not environmentally responsible and larger corporations should consider managing environmental responsibility in the supply chain as part of an effective risk management strategy. Findings support the government's vision of the creation of employment, the promotion of small business within the waste sector, and the role that SMEs play in environmental responsibility. The later through extended producer responsibility in waste management and recycling of larger business and thus, sustainable development in South Africa.