Evaluating MSME - Specific Business Sustainability Indicators

Abstract

This paper explores the integration of comprehensive sustainability indicators among Micro, Small, and Medium Enterprises (MSMEs) in the industrial regions of Dadra & Nagar Haveli and Daman & Diu, India. As sustainability has become crucial for maintaining competitiveness and regulatory compliance, this study investigates the adoption of expanded sustainability indicators, including Environmental, Social and Governance (ESG) metrics as well as operational efficiency, supply chain sustainability, and economic performance indicators. Through a purposive sampling of 10 MSMEs in sectors such as Textiles, Electronics, and Food Processing, the study evaluates how various Indicators impact Business Performance, Brand Reputation, and Regulatory Preparedness.

Leveraging both qualitative and quantitative data, the research includes in-depth interviews and surveys of MSME management, analysing the immediate and long-term impacts of sustainability practices. Findings reveal that environmental and operational efficiency indicators yield significant cost savings, while governance and supply chain metrics enhance compliance and stakeholder trust. The study also emphasizes the role of external professionals, whose involvement facilitates higher adoption rates of sustainability practices and better alignment with regulatory standards.