Dear Colleagues,

this Special Issue of Sustainability falls within the “Economic, Business and Management Aspects of Sustainability” section. Sustainability management and finance, small and medium enterprises (SMEs) and local development are the three key points that will be discussed in this special issue.

Numerous studies on SMEs demonstrate the strengths of these enterprises: the considerable opportunities their potential for flexibility, creativity, autonomy, prompt market response, and product and services personalization permit. However, some of the greatest weaknesses (strategic and financial, in particular) of SMEs have to be overcome if these firms are to compete successfully in the context of new market trends. The triple bottom line approach (Elkington, 2004) and medium-long term strategies should be adopted as a matter of priority. The shift to new business models is proving ever more advisable for SMEs (Klewitz and Hansen, 2014; Jernström et al., 2017), particularly in light of some of the overarching realities on the ground (such as the Sustainable Development Goals).

From a managerial point of view, SMEs are encouraged to move away from traditional business models and adopt new approaches that balance economic, social and environmental goals. To this end, strategic choices must be made in order to adapt to new trends. Equally importantly, SMEs need financial support in order to enable them to overcome historical limits to their investment choices. Indeed, ensuring and accounting for their social and environmental impacts could prove extremely costly.

Any focus on SMEs inevitably highlights another key factor: the local context in which they are embedded. The opportunity arises to develop and reinforce relationships with local stakeholders (institutions, organizations, local banks, public entities, enterprises, …) and these relationships often enable managerial and/or financial weaknesses to be overcome. Sustainability management and finance with regard to local development is challenging since it calls for tailored actions and strategies due to the small dimensions of both the enterprises and the investors/lenders.

On the other hand, investors (whether local banks, public entities, or individuals) wishing to pursue sustainable investment strategies need to be committed to a long-term approach, and to the belief that improving society is more important than just pursuing profit. In other words, they must focus on sustainable financial performance and investors need to integrate social and environmental impact measures within their lending policies (see Larry Fink, Blackrock Chairman in his 2019 letter).

In light of these considerations, the Special Issue calls for research papers, conceptual papers and literature reviews, discussing sustainability management and finance for SMEs as enterprises and/or operating at the local level.

References

Elkington, J. Enter the triple bottom line. In The triple bottom line: Does it all add up? Henriques, A.; Richardson, J., Eds., Earthscan: London, 2004; pp. 1-16

Jernström, E., Karvonen, V.; Kässi, T., Kraslawski, A., Hallikas, J. The main factors affecting the entry of SMEs into bio-based industry. Journal of Cleaner Production 2017, 141, 1-10.

Karkowska R. Business Model as a Concept of Sustainability in the Banking Sector. Sustainability 2020, 12(1), 111.

Klewitz, J., Hansen E.G. Sustainability-oriented innovation of SMEs. Journal of Cleaner Production 2014, 65, 57-75.

Ziolo M., Filipiak B.Z., Bąk I., Cheba K. How to Design More Sustainable Financial Systems: The Roles of Environmental, Social, and Governance Factors in the Decision-Making Process. Sustainability 2019, 11(20), 5604.

Prof. Federica Buffa
Prof. Dr. Eleonora Broccardo
Guest Editors

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• sustainability management
• sustainable finance
• small and medium enterprises (SMEs)
• local development
• sustainable business model
• local banks
• public private partnerships
• environmental management practices
• ESG investing