1.2. SMEs and the environment
The small and medium enterprises constitute an important segment of the Indian economy. This sector is a “nursery of entrepreneurship” and contributes to about 8% of the GDP, 45% of the manufactured output and 40% of exports (Report of Prime Minister's Task Force on MSME, 2010). This sector’s contribution to employment is second highest next to only agriculture (SME World). In spite of business advantages of proactive environmental strategies, SMEs generally adopt reactive strategies which focus on compliance rather than sustainability (Hobbs, 2000). 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 (MIT Sloan Sustainability Dashboard).
1.2. SMEs and the environment
The small and medium enterprises constitute an important segment of the Indian economy. This sector is a “nursery of entrepreneurship” and contributes to about 8% of the GDP, 45% of the manufactured output and 40% of exports (Report of Prime Minister's Task Force on MSME, 2010). This sector’s contribution to employment is second highest next to only agriculture (SME World). In spite of business advantages of proactive environmental strategies, SMEs generally adopt reactive strategies which focus on compliance rather than sustainability (Hobbs, 2000). 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 (MIT Sloan Sustainability Dashboard).
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