Summary

“Based on a review of existing literature, this paper discusses to what extent and how SMEs can deliver green and inclusive growth. The OECD defines green growth as aligning economic growth and environmental objectives. Specifically, it involves transitioning to a resource-efficient, low carbon economy and preserving environmental resources while seizing the economic opportunities that this transition generates (OECD, 2015[9]). Similarly, the World Bank defines green growth as “economic growth that is environmental sustainable.” Put it more concretely, it means “enabling developing countries to achieve robust growth without locking themselves into unsustainable patterns” (World Bank, 2012[10]). Meanwhile, inclusive growth involves raising “societies’ welfare or living standards broadly defined.” It is a multidimensional measure of growth and includes both income-related measures of well-being and non-income elements such as health and education. Inclusive growth also emphasizes the question of distribution; that is, how are aggregate changes in measures of growth distributed across households and individuals (Boarini, Murtin and Schreyer, 2015[11])? Simply, green and inclusive growth involves a transition to an eco-friendly, low-carbon economy and simultaneously, broad improvements in societal welfare. Thus, the paper is concerned with discussing to what extent greening SMEs delivers widespread societal welfare gains.”