Data-driven financial models for sustainable SME growth: Integrating green finance into small and medium enterprise strategies
1 Eastern Illinois University, Charleston, USA.
2 Department of Sustainability, Eastern Illinois University Charleston Illinois, USA.
Review
International Journal of Frontline Research in Science and Technology, 2024, 04(01), 063–072.
Article DOI: 10.56355/ijfrst.2024.4.1.0053
Publication history:
Received on 02 October 2024; revised on 09 November 2024; accepted on 12 November 2024
Abstract:
In recent years, the increasing urgency to address climate change and environmental degradation has prompted a shift towards sustainable business practices, particularly within the realm of small and medium enterprises (SMEs). This paper explores the integration of green finance into the strategic frameworks of SMEs, examining how financial instruments and funding mechanisms can support environmentally sustainable practices while fostering economic growth. By assessing the current landscape of green finance, including green loans, bonds, and impact investing, the study identifies barriers SMEs face in accessing these resources. It highlights successful case studies where SMEs have effectively utilized green finance to implement energy-efficient technologies, sustainable supply chains, and eco-friendly product innovations. Furthermore, the paper proposes a strategic model for SMEs to incorporate green finance into their operations, emphasizing the importance of aligning with sustainability goals, enhancing stakeholder engagement, and leveraging partnerships with financial institutions. The findings underscore that integrating green finance not only contributes to environmental sustainability but also enhances the competitive advantage and resilience of SMEs in an evolving market landscape.
Keywords:
Small and medium enterprises; Sustainable business practices; Environmental sustainability; Financial instruments; Green loans
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Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0