Examination of ESG Integration in Sustaining SMEs Growth in Egypt

Abstract

The primary objective of this study article is to analyze the effects of incorporating environmental, social, and governance (ESG) principles on the sustainable development of small and medium companies (SMEs) in Egypt. This study employs qualitative research methods to address research inquiries by conducting interviews and surveys with a sample size of 240 enterprises. The objective is
to examine and moderate the association between the sustainability growth of small and mediumsized enterprises (SMEs) and their adoption of sustainability practices. This is achieved by integrating environmental, social, and governance (ESG) principles into their operational strategies, with the aim of enhancing the overall performance of the enterprises. The findings suggest that small and mediumsized enterprises (SMEs) in Egypt demonstrate a limited understanding of environmental, social, and governance (ESG) practices and innovation. Consequently, they may not fully recognize the significance of these practices in relation to achieving sustainability performance. The research findings have significant practical implications for various stakeholders, both internal and external. These stakeholders include managers, consultants, investors, credit agencies, lenders, policymakers, government entities, and the broader community. The implications pertain specifically to the potential impacts of environmental, social, and governance (ESG) practices on small and medium-sized enterprises (SMEs).