Investigating the relationship between government support and SMEs’ sustainability through financial and green lenses

Abstract

Purpose To be successful on a global scale, small- and medium-sized enterprises (SMEs) need government support (GS) for innovation, sustainability and creativity. GS has always been a constructive influence on enterprises. This paper aims to examine the role of GS in assessing financial literacy (FL), access to finance (AF) and green value co-creation (GVC) for the sustainability of SMEs. Design/methodology/approach This study’s sample comprises SMEs in Lahore, Pakistan. Data collection started in December 2021 and ended in February 2022. Using convenient sampling, 320 responses were collected from SMEs and included in data analysis. Hypotheses were tested, and model fit was checked through the software AMOS 22. Findings It has been examined that GS plays a pivotal role in acquiring FL, AF and GVC for the sustainability of SMEs. Research limitations/implications Increasing the sample size will give a more demonstrative picture as the population size is quite large. Future researchers should design causal relationships, linking these variables through longitudinal research. Originality/value No study has been conducted on SMEs of developing economies using these variables. This study contributes to the literature by providing a comprehensive model and identifying GSs importance in achieving SMEs’ sustainability through financial and green lenses. This research significantly impacts government policymakers and SMEs by giving them insight into the importance of green practices, financial capabilities and SMEs’ sustainability.