Assessing the Influence of Green Finance on the Financial Sustainability Performance of Small and Medium Enterprises (SMEs): Comparative Analysis of Malaysia and Indonesia

DOI

10.2991/978-94-6463-508-9_7How to use a DOI?

Keywords

Green finance; sustainability performance; SMEs; Malaysia; Indonesia

Abstract

In response to global environmental concerns and the growing emphasis on sustainability, small and medium-sized enterprises (SMEs) have emerged as significant players in promoting environmentally responsible practices. This paper investigates the impact of green finance on the financial sustainability performance of SMEs, with a specific focus on Malaysia and Indonesia, two prominent Southeast Asian economies. Through a comparative analysis, the study examines the challenges and opportunities encountered by SMEs in each country as they navigate the landscape of green finance, highlighting key factors influencing adoption rates and outcomes. Utilizing self-administered online questionnaires, data were collected from 212 owner-managers in Malaysia and 123 owner-managers in Indonesia. Statistical analyses using SPSS and Smart PLS-SEM software were conducted to test the hypotheses and explore the mechanisms through which green finance influences sustainability performance among SMEs. This research contributes to Sustainable Development Goal 13, “climate action,” by providing insights into how SMEs in Malaysia and Indonesia engage with green finance to enhance their financial sustainability performance. By identifying the drivers and barriers associated with green finance adoption, this study offers valuable implications for policymakers, financial institutions, and SMEs seeking to promote environmentally responsible practices and achieve sustainable development goals.

Copyright

© 2024 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Ali Zainal Abidin
AU  - Sonia Lohana
AU  - Kenny Pradipta Montoya Putra Pratama
PY  - 2024
DA  - 2024/09/19
TI  - Assessing the Influence of Green Finance on the Financial Sustainability Performance of Small and Medium Enterprises (SMEs): Comparative Analysis of Malaysia and Indonesia
BT  - Proceedings of the Twelfth International Conference on Entrepreneurship and Business Management 2023 (ICEBM 2023)
PB  - Atlantis Press
SP  - 62
EP  - 78
SN  - 2667-1271
UR  - https://doi.org/10.2991/978-94-6463-508-9_7
DO  - 10.2991/978-94-6463-508-9_7
ID  - Abidin2024
ER  -