Understanding Barriers to Sustainable Resource Practices in Small and Medium Enterprises

Abstract

Small and medium enterprises (SMEs) are critical to the global economy, yet they face significant barriers when attempting to adopt sustainable resource practices. This study aims to explore these barriers, understanding their nature and implications, to inform better support mechanisms and strategies for SMEs. A qualitative research approach was employed, utilizing semi-structured interviews as the sole method of data collection. Participants were selected through purposive sampling to ensure a diverse representation across various industries and geographic locations. Data saturation was achieved after conducting interviews with 34 SME leaders and decision-makers. The thematic analysis was used to identify patterns and categorize the data into distinct themes and subthemes. Three main themes were identified: Financial Constraints, Organizational Challenges, and External Influences. Under Financial Constraints, categories such as Initial Investment Costs, Operational Costs, Access to Funding, Financial Risk, and Economic Scale Limitations were discussed. Organizational Challenges included Leadership Commitment, Employee Engagement, Knowledge and Expertise, and Policy and Regulation Alignment. External Influences comprised Market Pressure, Supply Chain Constraints, Technological Advancements, and Public and Governmental Support. Each category was supported by specific concepts derived from the interview data, illustrating the complex interplay of barriers faced by SMEs. The study highlights the multifaceted nature of the barriers to sustainable practices in SMEs, emphasizing the need for multi-pronged, tailored approaches that address both internal organizational factors and external economic and regulatory environments. Enhancing the support structures for SMEs in sustainability practices is crucial for broader economic and environmental sustainability.