An Integrated Framework on the Sustainability of SMEs

Abstract

The aim of this article is to investigate the relationship between the budget related to corporate social responsibility (CSR), Innovation and Training, defined as sustainable factors, and the financial results of small and medium sized enterprises (SMEs). The investigation is made by analysing the financial results from a sample of 200 SMEs from the South-West Region of Romania. The findings prove that SMEs can use training and innovation to improve the impact of CSR on their sustainability with a focus on positive financial indicators. The findings prove that corporate social responsibility (CSRBi), innovation (InnovBi), and training (TrainingBi) as sustainable factors are significantly and positively correlated with the following indicators: profit (Profiti), profit per employee (ProfitEi) and total expenditure (Expensesi), and it is negatively correlated with debt ratio (DebtRi).