Project of Assessment of the Impact of Sustainability practices Among SMEs in Ghana

Abstract

This study examined the impact sustainability practices among SMEs in Ghana. The study discussed the resource-based view, stakeholder theory, the concept of sustainability practices, and SME performance as part of the theoretical and conceptual reviews. This dissertation utilized the positivist research paradigm and the quantitative research approach. The study was analyzed using both descriptive and inferential statistics. In all, 300 small and medium-sized enterprises were included in the study, and the research employed a questionnaire to elicit the required data for the study. The findings suggest a moderately high engagement, particularly in areas such as governance and environmental practices. Also, environmental, social, and governance (ESG) factors were all found to significantly predict performance outcomes, with governance practices showing particularly strong relationships. The analysis of drivers for implementing sustainability practices reveals a complex yet encouraging picture. Key motivators include regulatory compliance, customer demand, reputational benefits, and strong top management support. The most cited obstacle was limited financial resources, followed closely by inadequate incentives and insufficient expertise. Based on the results, it was recommended that SME leaders should begin with a structured self-assessment of their current sustainability actions, identifying gaps particularly in social and governance practices which are often underemphasized. Also, SME owners should be encouraged to track and document the tangible benefits of their sustainability actionssuch as cost savings from energy efficiency or increased customer retention from ethical branding. Furthermore, Managers should invest in understanding customer expectations and market trends related to sustainability, and translate these insights into product innovation and ethical branding. Lastly, SMEs should explore partnerships, cooperative networks, or industry clusters where knowledge, tools, and costs related to sustainability can be shared.