Sustainable Warriors Unleashed: Unravelling the Triggers of Eco-Enthusiasm in a Developing Nation's SMME Community

Sustainable Warriors Unleashed: Unravelling the Triggers of Eco-Enthusiasm in a Developing Nation's SMME Community

Copyright: © 2024 |Pages: 17
DOI: 10.4018/979-8-3693-0790-8.ch006
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Abstract

Several authors have researched and published articles clarifying sustainability and how large businesses participate in sustainability initiatives. On the other hand, there is a dearth of published research on the factors that motivate small and medium-sized enterprises (SMMEs) to engage in environmentally friendly business practices. To fill this void, this chapter presents the results from a study on the factors that influence SMMEs to engage in sustainable practices. Normative pressures have a greater influence when leading entrepreneurs to engage in sustainable practices. Interestingly isomorphic forces impact SMMEs in their pursuit of sustainability similarly to large corporations. From a managerial perspective, this chapter urges the micro, small, and medium-sized enterprise sector to place a greater emphasis on information exchange to accommodate the growing demand for businesses to become involved in sustainable development. In addition, entrepreneurs need to be more aggressive in encouraging internal innovation towards sustainable practices.
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Introduction

The present-day society faces numerous pressing economic, social, and environmental challenges, resulting in instability, social unrest, and environmental risks (Chistov et al., 2021). These challenges are frequently denoted as the “grand challenges” or “planetary mega issues” in academic discourse. The authors Chistov et al. (2021) and Laasch et al. (2022) argue that these obstacles, which they refer to as “particular critical obstacles,” play a crucial role in addressing significant societal and environmental challenges. The field of entrepreneurship has attracted considerable interest as a potential means of tackling prominent societal and environmental challenges, such as climate change and pervasive social inequalities (Gregori & Holzmann, 2020; Hahn et al., 2018; Ramlal & Chiweshe, 2022). Throughout history, the primary motivation driving entrepreneurial endeavours has largely been the desire to create economic value (Anand et al., 2021; Gregori & Holzmann, 2020). However, an increasing acknowledgement of worldwide social and environmental issues has led to a shift in the entrepreneurial sphere, where social and environmental goals are now incorporated alongside core business activities (Anand et al., 2021; Gregori & Holzmann, 2020; Hahn et al., 2018). There is a growing acknowledgment of the efforts made by present-day entrepreneurs in minimising the negative impacts they have on the environment. Furthermore, the authors Anand et al. (2021) and Hahn et al. (2018) emphasise the efforts made by organisations to incorporate pro-socio-environmental principles into their core business activities.

Numerous influential factors, such as the environment, laws, consumers, and social groups, often drive companies to adopt responsible behaviour and participate in sustainable practices (Bajdor et al., 2021; Pham et al., 2020). There are well-supported arguments concerning companies' significant role in environmental sustainability (Fernando et al., 2019; Knoppen & Knight, 2022). The empirical evidence of a growing recognition of environmental concerns and the importance of sustainability is demonstrated by the increasing allocation of resources towards Corporate Social Responsibility (CSR) initiatives, advertising, sustainability reporting, mitigation measures, carbon reduction, and other related endeavours (Malarvizhi & Yadav, 2008; Poddar et al., 2019). Prominent multinational enterprises, including Mahindra & Mahindra, Tata, and Godrej, have garnered recognition for their dedication to sustainable practices within their respective industries, as evidenced by their demonstrated environmental responsibility (Ghosh & Das, 2022; Sarangi, 2021).

Scholars have engaged in frequent discourse regarding the sustainability policies implemented by major corporations (Ramlal & Chiweshe, 2022). The prominence of these corporations in society and the observable impact of their policies contribute to this phenomenon. Cantele et al. (2020) argue that while the environmental consequences of a single small and medium-sized enterprise (SME) may appear negligible in comparison to those of a solitary large corporation, the combined impact of numerous SMEs is considerable in terms of resource utilisation, air and water contamination, and waste production. There is a prevailing consensus that they play a substantial role, encompassing a range of 60% to 70%, in the occurrence of industrial pollution within the European context. There is, however, limited knowledge from a developing world perspective, more so on the African continent.

Key Terms in this Chapter

Institutional Theory: Elucidates the processes through which consensus is established regarding sustainability, as well as the development and dissemination of sustainability concepts and practices within organisations.

Economic Sustainability: Refers to the strategic management approach aimed at minimising operational costs through systematic management, enhancing labour productivity, allocating more resources towards research and development, and investing in training and other forms of human capital.

Social Sustainability: A focal point that places emphasis on the advancement and progress of society in terms of growth and development.

Entrepreneurial Values: Considered essential prerequisites for the manifestation of entrepreneurial behaviour. Entrepreneurial values necessitate the possession of certain attributes, namely creativity, risk-taking propensity, inventiveness, the ability to achieve in a multi-dimensional manner, ambition, and independence.

Environmental Sustainability: Refers to the practise of safeguarding natural resources by closely monitoring the impact of human activities, commonly referred to as the human footprint, on the natural environment. The concept involves the proper utilisation of both renewable and non-renewable resources, along with the controlled release of emissions and the effective management of waste absorption.

Normative Pressure: Pertains to the exertion of influence by customers, wherein their demand for environmentally friendly products serves as a significant factor motivating businesses to adopt further sustainable approaches and practices within their operations.

Sustainability: Refers to the potential for achieving conditions that ensure the long-term well-being of a collective of individuals and their future generations within a specific ecological system.

Coercive Pressure: Relates to the impact that manifests when enterprises perceive a dependence on their peripheral environments to acquire resources that enhance their ability to survive.

Sustainable Entrepreneurship: Can be defined as the deliberate emphasis on preserving the environment, ensuring the well-being of ecosystems, and fostering community development while actively seeking opportunities to create new products, processes, and services for the purpose of generating gains. These gains encompass both economic and non-economic benefits that contribute to the welfare of individuals, the economy, and society at large.

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