preview

Eco-Advantage Of SME

Good Essays

Introduction

Small & Medium Enterprises (SMEs) are considered as a home for inventiveness, creativity and innovation. The progress of SME’s is seen to encompass new environmentally friendly goods and methods of operations, such as solar panels, waste reduction, energy efficiency and many more sustainability initiatives. Eco-Advantage is the joint & similar concern with doing right thing and making money. Experts believe that SME are better placed to adopt eco-advantage because they are nimble, have an ability to change quickly and focussed on innovation. SME’s represent about 90% of the global businesses, about 50% of the GDP of all the World’s countries and 63% of total employment in the world. Some estimates suggest that they represent that they contribute to about 60-70% of industrial pollution which is a significant portion. Experts believe though individually they contribute lesser to environmental degradation as compared to the large enterprises but collectively their contribution is sufficiently high and is a cause of concern. Literature also shows that SME’s are slow in terms of adopting sustainable environmental measures. For example in EU only 29% of SME’s are working on reducing energy consumption or raw material consumption as compared to 46% of the large …show more content…

It is projected that the SMEs are responsible for 70% of the industrial pollution in the country. However, the sector faces numerous challenges like Supply chain inefficiencies, Uncertainty in Market, shortage of funds, limited human capital not only inside the firm but also outside who can support the firm in various initiatives, taxation policies, increasing domestic and foreign competition and environmental legislations. Lack of effective distribution system is also one of the major problems faced by the SMEs. Let us focus on some of the problems and the solutions which can enable SMEs to adopt sustainable business

Get Access