Green business strategies as a source of competitive advantage for SMEs

Gurudas Nulkar


The small and medium enterprises today constitute an important segment of the Indian economy. This sector‟s contribution to employment is second highest next to only agriculture (Anon., n.d.).

Recent studies show that the firm size is one of the major determinants of a firm‟s green strategy – environmental actions undertaken are inversely proportional to the company size (Bianchi & Noci, 1996) . In the 2011 survey on Sustainability and Innovation, the MIT Sloan Business School too had similar findings (Anon., n.d.).

SMEs follow business instincts to reduce resource use and waste. But when faced with the prospect of no short term gains in profits, SMEs may look at these investments as a wasteful expenditure (Esty & Winston, 2009). This paper aims at making a convincing argument for  SMEs to focus on green strategies and show a way of doing it. 

Keywords :

green business, green strategy, competitive advantage, SME, sustainability, ecoadvantage

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