Investigating the Determinants of Small and Medium Enterprises (SMEs) Sustainability Practices in Kogi State, Nigeria from the Triple Bottom Line Perspective

Abstract

Small and medium-scale enterprises (SMEs) are crucial for national economic growth, despite challenges of balancing their financial obligations with their social and environmental commitments. Understanding the factors influencing these businesses'
adoption of sustainable practices would enable the companies to enhance their long-term survival and capacity to assist the states to realise their developmental objectives. Given the above background, this study examined, within a Triple Bottom Line (TBL) framework, the factors influencing sustainability initiatives concerning Small and Medium-scale Enterprises (SMEs) in Kogi state, Nigeria. Primary data were adopted to achieve the aim of this paper. The multi-stage sampling technique was employed in selecting the respondents, where four LGAs were chosen across three state senatorial districts. From the selected LGAs, the study
surveyed 383 SMEs in the state, using the questionnaire data collection method. Results show that, despite employee training and benefits being stressed among SMEs, there is a lag in employees’ overall well-being. While environmental impact assessments still demand more attention, waste reduction and energy conservation are given considerable importance. Financial restraints and lack of awareness ranked highest among the main challenges. Cultural traits, especially employee resistance to change, greatly affect the degree of sustainability shown by SMEs. The study therefore recommends that SMEs should give workers' well-being top priority; improve their waste management techniques; and the  government should give incentives through subsidies to help close knowledge gaps and financial challenges. In addition, there is a need to encourage business within Kogi state and Nigeria at large to give sustainability priority in their dealings, instead of profitability.