Lack of market research and lack of financing

SMEs face challenges from increased competition, the ability to adapt to rapidly changing market demand, technological change, and capacity constraints relating to knowledge, innovation, and creativity.

Sustainable entrepreneurship (SE) is a concept that combines both sustainability and entrepreneurship, and has been defined as “an innovative, market oriented and personality driven form of value creation by environmentally or socially beneficial innovations and products exceeding the start-up phase of a company”

The main challenges in the field of pro-environmental SME entrepreneurship taking into account international sustainable development is the issue of financing new, pro-environmental investment projects, implementation of green investments, increasing the scale of implementation of sustainable development goals in the conducted business activity. Interventionist support for economic entities, including companies and enterprises operating on a national and international scale, is necessary in the field of financing pro-environmental economic activity from the funds of the state finance system.

Best regards,

Dariusz Prokopowicz

SMEs need to reorient their plans and strategies towards achieving the important SDGs with respect to SDG7 (Affordable and clean energy), SDG8 (Decent work and Economic growth), SDG9 (Industry, Innovation and Infrastructure) and SDG12 (Responsible Consumption and Production). Achieving these goals within the timeframe of 2030 need them to make huge investments. Given the financial status, their meagre structure as well as the informal nature of a large proportion of the SMEs, it is pertinent that countries will have to help the SME sectors to overcome the challenges as a matter of priority. Needless to say, the pandemic Covid-19 has very badly affected the capabilities of vast segment of the SMEs.

I also consider 'behavioural issues' as one of the major challenges facing the sustainable growth of entrepreneurial activities, besides the lack of finance and managerial skills as pointed out by Hermann Gruenwald. I specifically consider the new policy initiatives towards green development/ clean development mechanisms, wherein, SMEs are quite lethargic towards adopting several of the initiatives, which are easily doable (the low hanging fruits, so to say). One instance I would like to highlight is the adoption of energy efficiency measures (EEMs), in which, SMEs are least concerned about, despite they are quite aware that the adoption of these measures would augment their competitiveness, profitability and sustainability in the long run.

In terms of international business, large multinational corporations have an advantage over much smaller companies and enterprises operating in the SME sector. Therefore, interventionist support for economic entities from the SME sector is necessary as part of a pro-development policy of supporting entrepreneurship and winning foreign markets by domestic entities. Then it is also possible to synergistically support the implementation of the goals of sustainable development in business implemented internationally.

Greetings,

Dariusz Prokopowicz