Turbocharging small and medium enterprises growth: Sustainable finance strategies for Indian entrepreneurs

Abstract

Small and Medium Enterprises play a significant role in the development of a country's economic ecosystem through their contribution towards employment generation, industrial growth and innovation. In India, SMEs are central to the Viksit Bharat 2047 goal, and their long-term competitiveness becomes essential for sustainable economic development. However, Indian SMEs continue to struggle with limited access to finance, resource constraints, technological gaps and increasing pressure to adopt sustainable practices. In this context, sustainable finance presents a promising pathway to achieving holistic growth, thereby promoting financial self-sustainability of such enterprises. Despite the growing consensus towards the academic and industrial significance of sustainable financial strategies, the research in this domain remains fragmented, particularly in the context of Indian SMEs and emerging economies. This study uses a systematic literature review conducted using Preferred Reporting Items for Systematic literature reviews and Meta Analysis (PRISMA) framework along with bibliometric analysis to provide a comprehensive review of the evolving landscape of sustainable finance strategies for SMEs. This analysis uses the Web of Science database to explore the progress in the field through thematic analysis, keyword co-occurrence, conceptual mapping and trend analysis. The findings identify major research themes such as sustainable finance, resource efficiency, sustainable business practices and the role of these enterprises in creating value for all stakeholders of business. This analysis helps identify sustainable finance strategies for small businesses in India while serving as a blueprint for other emerging economies. These enterprises can adopt sustainable finance strategies to enhance their competitiveness, minimise their operational costs and enhance participation in global supply chains. Small and medium enterprises can further benefit from the strategies highlighted in this study to access alternate finance options while supporting long-term sustainable development.