Sustainability Practices in South African SMEs: The Role of Awareness, Climate Change Readiness, Green Finance Readiness, and Barriers
摘要
This chapter presents the factors influencing sustainability practices of small and medium-sized enterprises (SMEs) in South Africa, focusing on sustainability awareness, climate change readiness, green finance readiness, and barriers to sustainability. Using a mixed methods approach, data was extracted from annual reports of 27 SMEs listed on the JSE AltX between 2017 and 2024. Python-based text mining identified key sustainability themes, while panel data regression analysed their influence on sustainability practices. The findings reveal a strong positive relationship between sustainability awareness and sustainable practices, underscoring the importance of knowledge and engagement. Although it was green finance awareness that was expected to influence sustainability practices, the influence was, unexpectedly, negative, suggesting a gap between green finance readiness and practical implementation. Another interesting finding was the positive relationship between barriers to sustainability and the sustainability practices. Traditionally, it has been believed that barriers would negatively affect practice; however, this study has found that reporting of barriers is an indication of deeper engagement with sustainability practices. The chapter points to the need to align green finance readiness with operational capabilities and highlights the role of institutional support in translating readiness into meaningful sustainability action. These insights offer valuable guidance for policymakers, practitioners, and researchers aiming to strengthen the sustainability agenda within SMEs.