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Environmental Awareness and Green Business Practices in the Small Business Sector: Empirical Evidence Using a Small and Medium-sized Enterprises Survey in Japan

Masahiko Shibamoto

No DP2022-08, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: This study argues that the heterogeneity in environmental awareness among business owners is a pivotal component in characterizing the implementation of green business practices in the small business sector. Specifically, using a large-scale survey of small and medium-sized enterprises (SMEs) throughout Japan, we show a gap between environmental awareness and green business practices in the small business sector; that is, SMEs are aware of environmental issues, but they do not practice green business to a large extent. Further, we quantitatively show that the environmental awareness of SMEs already practicing or attempting to practice green business tends to be greater than that of SMEs not practicing green business. Our empirical results support the link between environmental awareness as a business opportunity and green business practices. However, there is less evidence that environmental awareness divorced from management, such as the need to pass on a sustainable society to future generations, would be involved with green business practices in the small business sector. Our findings advocate that policymakers looking to strengthen environmental initiatives in the small business sector need to direct SMEs to build awareness of environmental issues related to their businesses.

Keywords: Green business practices; Environmental awareness; Small business sector; Survey data; Japan (search for similar items in EconPapers)
JEL-codes: L21 Q56 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2022-03
New Economics Papers: this item is included in nep-agr, nep-cse, nep-ene, nep-ent, nep-env and nep-sbm
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