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Unlocking sustainability: prioritizing barriers for SME success in India with AHP analysis

Author

Listed:
  • Vineet Pandey

    (School of Automation, Banasthali Vidyapith)

  • Sudesh Kumar

    (Banasthali Vidyapith)

  • Sumit Gupta

    (Amity University Uttar Pradesh)

  • Narendra Khatri

    (Manipal Institute of Technology, Manipal Academy of Higher Education)

Abstract

Purpose Small- and medium-sized enterprises (SMEs) constitute the nation’s foundation and facilitate the advancement of invention and economic progress. Sustainability is considered the latest paradigm in the manufacturing sector. SMEs need to use innovative production and management technologies to address triple bottom line (TBL) sustainability to achieve the Sustainable Development Goals (SDGs). The current research focuses on identifying and prioritizing barriers to sustainability in SMEs. Methodology The analytical hierarchy process (AHP) is used to prioritize sustainability barriers in SMEs. A hierarchical framework is developed based on six main criteria and seven alternatives. The six criteria are cost, risk, innovation, feasibility, stakeholders, impact, and seven alternatives: employee satisfaction, training, energy efficiency, procurement, awareness, renewable sources, and waste reduction. The Super Decisions software V3.2 applied relative weights to these criteria and alternatives, utilizing the AHP, a multi-criteria decision method (MCDM), to evaluate the SME owner responses from 116 SMEs. Findings The AHP analysis highlights economic considerations, with cost given the highest weight of 0.42. Government support via incentives, tax breaks, subsidies, or financing is essential to address this issue. Impact (0.31) and feasibility (0.11) are also critical, underscoring the need for proactive sustainability measures in SMEs. The study provides a thorough grasp of sustainability challenges and offers a strategic framework for SMEs and policymakers. Prioritizing staff training, energy efficiency, employee satisfaction, public awareness, waste reduction, renewable energy, and procurement is advised to enhance sustainability practices.

Suggested Citation

  • Vineet Pandey & Sudesh Kumar & Sumit Gupta & Narendra Khatri, 2024. "Unlocking sustainability: prioritizing barriers for SME success in India with AHP analysis," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 14(1), pages 1-21, December.
    • Handle: RePEc:spr:jglont:v:14:y:2024:i:1:d:10.1007_s40497-024-00395-3
    DOI: 10.1007/s40497-024-00395-3
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