Exploring the Impact of Green Entrepreneurship on the Competitive Advantage of SMEs: A Sustainable Management Approach

Abstract

This study examines the impact of green entrepreneurship on the competitive advantage of small and medium enterprises (SMEs) through a sustainable management approach. Using a qualitative research methodology, this study explores how adopting environmentally sustainable practices can enhance SMEs’ market positioning, operational efficiency, and customer loyalty. Data were collected through in-depth interviews with SME owners, green entrepreneurs, and sustainability experts, enabling a comprehensive understanding of the benefits and challenges associated with integrating green initiatives into business strategies. Findings reveal that green entrepreneurship not only improves SMEs' public image and customer appeal but also enhances cost efficiency through optimized resource use and waste management practices. Furthermore, the study identifies several challenges, such as the initial financial investment and the ongoing need for innovation to maintain a green brand image. However, these challenges are outweighed by the long-term benefits, as green entrepreneurship fosters a unique value proposition that differentiates SMEs from their competitors. This research contributes to the literature on sustainable management by demonstrating that green entrepreneurship is a viable strategy for SMEs aiming to achieve both environmental responsibility and a competitive edge. The findings provide valuable insights for policymakers and SME managers looking to support sustainable practices in the business sector.