EMPOWERING SMALL- AND MEDIUM-SIZED ENTERPRISES FOR A SUSTAINABLE GREEN RECOVERY: A CSR PERSPECTIVE

Abstract

This study examines the dynamics of sustainable economic growth in 15 developing Asian economies spanning from 2005 to 2020, utilizing the Cross-Sectional Augmented Autoregressive Distributed Lag technique. It highlights the significant role played by Small and Medium Enterprises (SMEs) in promoting green growth and emphasizes their crucial contribution to fostering environmentally conscious development. The findings indicate a positive relationship between SMEs’ numbers, revenues and green growth, underscoring their essential role in advancing environmental sustainability. The study also notes the limited impact of government-provided SME loans on green growth, suggesting a reassessment of loan programs. In contrast, the effects of Foreign Direct Investment absorption, electricity consumption and digital transformation on green growth vary, providing valuable policy insights. Particularly noteworthy is the significant influence of SMEs’ revenues, highlighting the importance of their financial success in promoting sustainable development. Recommendations include incentivizing Corporate Social Responsibility (CSR) initiatives to strengthen SMEs’ commitment to sustainability and formulating policies that incorporate emerging technologies such as cryptocurrency to enhance environmental responsibility.