Embracing Green Finance for Sustainable Business Growth: The Malaysian SME Experience

Meng Kui Hu () and Daisy Mui Hung Kee ()
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Meng Kui Hu: Universiti Sains Malaysia
Daisy Mui Hung Kee: Universiti Sains Malaysia

A chapter in Financial Resilience and Environmental Sustainability, 2025, pp 299-314 from Springer

Abstract: Abstract Despite the increasing significance of green finance in achieving business sustainability, it is deemed nascent, albeit growing awareness among businesses globally. This is more so for SMEs in developing nations, including Malaysia, which often relate green finance to large corporations. Even when SMEs want to embark on green finance to grow their business, they face various obstacles due to limited resources. Conversely, SMEs must go through a green transition to shift their businesses towards economically sustainable development while maintaining climate and environmental agenda. This achievement will help drive the nations to be aligned with sustainable development goals (SDGs). Arguably, the primary challenges SMEs face relate to the misconception of green finance, limited knowledge and expertise in adequate financial and non-financial resources, and the complexity of securing green finance. To embrace green finance for sustainable business growth, SMEs must adopt an open mindset for the greening process, re-align their business model, embrace green innovation in their operations, and leverage available green funds. On the other hand, financial institutions and the government can also extend a more proactive role in promoting green finance among SMEs.

Keywords: Green finance; Green innovation; Green transition; SDGs; SMEs; Sustainable business (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/978-981-96-4269-4_13

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