Unlocking sustainability: prioritizing barriers for SME success in India with AHP analysis

Abstract

Purpose

Small- and medium-sized enterprises (SMEs) constitute the nation’s foundation and facilitate the advancement of invention and economic progress. Sustainability is considered the latest paradigm in the manufacturing sector. SMEs need to use innovative production and management technologies to address triple bottom line (TBL) sustainability to achieve the Sustainable Development Goals (SDGs). The current research focuses on identifying and prioritizing barriers to sustainability in SMEs.

Methodology

The analytical hierarchy process (AHP) is used to prioritize sustainability barriers in SMEs. A hierarchical framework is developed based on six main criteria and seven alternatives. The six criteria are cost, risk, innovation, feasibility, stakeholders, impact, and seven alternatives: employee satisfaction, training, energy efficiency, procurement, awareness, renewable sources, and waste reduction. The Super Decisions software V3.2 applied relative weights to these criteria and alternatives, utilizing the AHP, a multi-criteria decision method (MCDM), to evaluate the SME owner responses from 116 SMEs.

Findings

The AHP analysis highlights economic considerations, with cost given the highest weight of 0.42. Government support via incentives, tax breaks, subsidies, or financing is essential to address this issue. Impact (0.31) and feasibility (0.11) are also critical, underscoring the need for proactive sustainability measures in SMEs. The study provides a thorough grasp of sustainability challenges and offers a strategic framework for SMEs and policymakers. Prioritizing staff training, energy efficiency, employee satisfaction, public awareness, waste reduction, renewable energy, and procurement is advised to enhance sustainability practices.