IDEAS home Printed from https://ideas.repec.org/a/aid/journl/v4y2021i2p105-119.html
   My bibliography  Save this article

Sustainable Financing for the Entrepreneurship Continual Growth: A Gap Analysis on Small and Medium Enterprises in India

Author

Listed:
  • Maharaja Alagpuria

    (TIPS School of Management, Coimbatore, India)

Abstract

Considering the existing funding conditionalities in India, the small and medium enterprises have to face stringent norms as sustainable financing requirements based on Environment, Society and Governance (ESG) disclosures are becoming mandatory for every organization worldwide. The onus still turns to be more intense than ever for the small and medium enterprises (SMEs). The main purpose of this paper is to warn SMEs of the upcoming sustainable financing conditionalities and develop a clear understanding among the SMEs on why they should adapt sustainable financing norms and be resilient towards sustainable financing and ESG disclosures. This paper also tends to inspire SMEs for entrepreneurial growth by striking a balance between their financial requirements and mandatory obligations to benefit themselves, society and the Indian economy. Moreover, this paper focuses on the conceptual stipulation and early adaption of sustainable finance framework by the SMEs and strives to fathom the gap between the sustainable financing realities and the expected level of SMEs’ exposure to sustainable financing and mandatory ESG disclosures. The research methodology identifies seven such areas interconnecting the sustainable financing and UN sustainable development goals (SDGs); Environment (Climate action & Carbon tax), Society (Sustainable Consumption & Externalities), Business (Sustainable Production) and Governance (Green finance, & ESG disclosures) and investigates to find the gap between the perception and expectation of SMEs about the mandatory requirements for sustainable financing and sustainability adaption in India.

Suggested Citation

  • Maharaja Alagpuria, 2021. "Sustainable Financing for the Entrepreneurship Continual Growth: A Gap Analysis on Small and Medium Enterprises in India," Virtual Economics, The London Academy of Science and Business, vol. 4(2), pages 105-119, April.
    • Handle: RePEc:aid:journl:v:4:y:2021:i:2:p:105-119
    DOI: 10.34021/ve.2021.04.02(6)
    as

    Download full text from publisher

    File URL: https://virtual-economics.eu/index.php/VE/article/download/112/85
    Download Restriction: no
    File URL: https://libkey.io/10.34021/ve.2021.04.02(6)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bert Scholtens, 2006. "Finance as a Driver of Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 68(1), pages 19-33, September.
    2. Beck, Thorsten & Demirgüç-Kunt, Asli & Maksimovic, Vojislav, 2008. "Financing patterns around the world: Are small firms different?," Journal of Financial Economics, Elsevier, vol. 89(3), pages 467-487, September.
    3. Steve Mercieca & Klaus Schaeck & Simon Wolfe, 2009. "Bank Market Structure, Competition, and SME Financing Relationships in European Regions," Journal of Financial Services Research, Springer;Western Finance Association, vol. 36(2), pages 137-155, December.
    4. Brandt, Patric & Ernst, Anna & Gralla, Fabienne & Luederitz, Christopher & Lang, Daniel J. & Newig, Jens & Reinert, Florian & Abson, David J. & von Wehrden, Henrik, 2013. "A review of transdisciplinary research in sustainability science," Ecological Economics, Elsevier, vol. 92(C), pages 1-15.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christoph Sommer, 2022. "Unintended consequences of microfinance: Effects on credit access for small‐ and medium‐sized enterprises," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(3), pages 564-586, April.
    2. Ganlin Pu & Md. Qamruzzaman & Ahmed Muneeb Mehta & Farah Naz Naqvi & Salma Karim, 2021. "Innovative Finance, Technological Adaptation and SMEs Sustainability: The Mediating Role of Government Support during COVID-19 Pandemic," Sustainability, MDPI, vol. 13(16), pages 1-27, August.
    3. Francisco Díez-Martín & Alicia Blanco-González & Camilo Prado-Román, 2016. "Explaining nation-wide differences in entrepreneurial activity: a legitimacy perspective," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 1079-1102, December.
    4. Adela Itzkin & Jai Kumar Clifford-Holmes & Mary Scholes & Kaera Coetzer, 2022. "Approaches to Enhance Integration and Monitoring for Social-Ecological Systems," Land, MDPI, vol. 11(10), pages 1-24, October.
    5. Emmanuel Yeboah-Assiamah & Kobus Muller & Kwame Ameyaw Domfeh, 2018. "‘Complex crisis’ and the rise of collaborative natural resource governance: institutional trajectory of a wildlife governance experience in Ghana," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(5), pages 2205-2224, October.
    6. Cristina Martínez-Sola & Pedro J. García-Teruel & Pedro Martínez-Solano, 2018. "Cash holdings in SMEs: speed of adjustment, growth and financing," Small Business Economics, Springer, vol. 51(4), pages 823-842, December.
    7. Hänke, Hendrik & Barkmann, Jan & Blum, Lloyd & Franke, Yvonne & Martin, Dominic A. & Niens, Jasnna & Osen, Kristina & Uruena, Viviana & Witherspoon, S. Annette & Wurz, Annemarie, 2018. "Socio-economic, land use and value chain perspectives on vanilla farming in the SAVA Region (north-eastern Madagascar): The Diversity Turn Baseline Study (DTBS)," DARE Discussion Papers 1806, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    8. Rob Alexander & Lori Britt & Elise Barrella, 2014. "Converging on sustainable placemaking through transdisciplinary process," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 4(4), pages 301-309, December.
    9. Anna Maria C. Menichini, 2017. "Miglo, Anton: Capital structure in the modern world," Journal of Economics, Springer, vol. 122(3), pages 303-306, November.
    10. Antonio Jacintos Nieves & Gian Carlo Delgado Ramos, 2023. "Advancing the Application of a Multidimensional Sustainable Urban Waste Management Model in a Circular Economy in Mexico City," Sustainability, MDPI, vol. 15(17), pages 1-23, August.
    11. Lucey, Brian M. & Zhang, QiYu, 2011. "Financial integration and emerging markets capital structure," Journal of Banking & Finance, Elsevier, vol. 35(5), pages 1228-1238, May.
    12. Beck, Thorsten & Demirgüç-Kunt, Asli & Singer, Dorothe, 2013. "Is Small Beautiful? Financial Structure, Size and Access to Finance," World Development, Elsevier, vol. 52(C), pages 19-33.
    13. Stephane Verani, 2018. "Aggregate Consequences of Dynamic Credit Relationships," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 29, pages 44-67, July.
    14. Zilio, Mariana I. & Alfonso, M. Belén & Ferrelli, Federico & Perillo, Gerardo M.E. & Piccolo, M. Cintia, 2017. "Ecosystem services provision, tourism and climate variability in shallow lakes: The case of La Salada, Buenos Aires, Argentina," Tourism Management, Elsevier, vol. 62(C), pages 208-217.
    15. Irani Arráiz & Marcela Melendez & Rodolfo Stucchi, 2012. "Partial Credit Guarantees and Firm Performance: Evidence from the Colombian National Guarantee Fund," OVE Working Papers 0212, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
    16. Hasan, Iftekhar & Jackowicz, Krzysztof & Jagiełło, Robert & Kowalewski, Oskar & Kozłowski, Łukasz, 2021. "Local banks as difficult-to-replace SME lenders: Evidence from bank corrective programs," Journal of Banking & Finance, Elsevier, vol. 123(C).
    17. Mikael C. Bergbrant & Delroy M. Hunter & Patrick J. Kelly, 2015. "Product Market Competition, Capital Constraints and Firm Growth," Working Papers w0215, New Economic School (NES).
    18. Chong, Terence Tai-Leung & Lu, Liping & Ongena, Steven, 2013. "Does banking competition alleviate or worsen credit constraints faced by small- and medium-sized enterprises? Evidence from China," Journal of Banking & Finance, Elsevier, vol. 37(9), pages 3412-3424.
    19. Knack, Steve & Xu, Lixin Colin, 2017. "Unbundling institutions for external finance: Worldwide firm-level evidence," Journal of Corporate Finance, Elsevier, vol. 44(C), pages 215-232.
    20. Anna Irene De Luca & Giacomo Falcone & Nathalie Iofrida & Teodora Stillitano & Alfio Strano & Giovanni Gulisano, 2015. "Life Cycle Methodologies to Improve Agri-Food Systems Sustainability," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 2015(1), pages 135-150.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aid:journl:v:4:y:2021:i:2:p:105-119. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Aleksy Kwilinski (email available below). General contact details of provider: https://edirc.repec.org/data/akwilin.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.