Environmental aspects of Micro, Small and Medium Enterprises (MSMEs)

Even though growing literature on environmental practices of large companies, the role of MSMEs remains less attention. While MSMEs dominate most firms in Indonesia, they will indirectly affect ecological issues. This study looks at the extent to which MSMEs involve in environmental practices. Specifically, the study attempts to assess the firm’s size and firm’s business sector and its influence on ecological aspects. Primary data collected by self-administered questionnaires with a sample of 250 respondents from selected MSMEs owners in East Java is carried out. The finding of the study revealed that firms size positively affect the entrepreneur's involvement in environmental practices. It indicates that greater firm size in the level of MSMEs is more likely to involve in environmental practices. Moreover, the firm’s business sector is also found to have positive influence entrepreneur’s engagement in environmental practice. The study suggests MSMEs particularly consumer goods and restaurant sectors are more closely monitored by the owner or manager which make them more likely to undertake environmental strategies.