MSME sustainability is important to combat climate change build awareness towards sustainable Green MSME business and projects for greater MSME sustainability, growth and development. Greening of MSME’ business is a way forward for a diversified option to sustain in tough periods.
Long term vision is way forward to act in the right path that sets direction, help sustain in tough period for MSME based business and SMB’s and having sustainability through green based business initiatives are absolutely essential for survival. ‘MSME Greening’ aspect is one of the crucial aspect to increase the MSME’s sustainability and development towards big financial goals. For MSME’s to sustain long period and find alternative means and ways of doing business the green aspect of the business will require boost both from government and private participants.
MSME sustainability and MSME greening are interrelated to each other as more research on the topic are helping more business potentials to sustain , develop and grow. The ability to harness from untapped zones i.e. making products, services and offerings which has greening aspect is crucial for MSME business to sustain and have growth potential.
Considering climatic changes worldwide which is directly responsible for production that are sourced from various sectors like agriculture, raw agriculture waste, fisheries, specific industries that survive on plants and plants based products.
The present climatic conditions worldwide is not concentrated to one country and is affecting people all over the world and resources are also dwindling a major cause of concern for business sustainability over long time period. So the question is what can green business offer for sustainability and health of our planet. How viable will greening of business help in growth of MSME and small business often struggle for finances and resources.
Are green based products services alternatives to main stream commercial products? These are some of the key questions that concerns while we consider green business or products and services which are supporting the greening of MSME’s.
Role of MSME’s in Sustainable Development supporting the industry as a whole
For example: Tea processing unit which are situated near Tea gardens can use solar power saving electricity and support their sustainability also protect the environment and save resources..
It is not necessary that all green business are inherently eco-friendly and may not have resources of means to push forward a complete structure of business towards green initiatives. Such initiatives require funds and availability and location of production sites matter.
Green business ideas are boon for MSME sustainability, stability and scalability helping our environmental protection. Recycled products can be of textiles ,plastic, fertiliser, industrial waste, rubber and agricultural products that are often used recycled further to create finished goods and products simultaneously support the growing small scale industry, SMB’s and MSME, giving rise to employment creating financial sustainability.
In modernized environment many new concepts have given to rise in recycling and green business efficacy. Growing local floristry business with seasonal flowers and local available can also save our environment and support floristry industry that thrives on continuous demand for fresh flowers. If fresh flowers are not available then locally grown can replace and fill in the gaps for fresh flower demands and keep supply chain running.
In beauty and wellness segment MSME contribute to a whole lot of demand by supplying ayurvedic and wellness holistic products and supporting a huge industry that thrives on wellness products and services. These products are derived from green based agro industry mostly like herbs, specific ayurvedic plants, teas and spices. The wellness industry supports a huge range of products like potpourri, soaps, bath salts and organic based wellness and beauty products.
As per research scientist Honey Bees are considered healthy for ecosystem and agriculture and the best way of keeping Bees and also thriving on honey industry is cultivating own Bees that will support both climate environment and Honey based industries sustainability which comes mostly under MSME category considering their location which are mostly in rural areas.
Sustainable food industry is focused on vegan and fresh farm produce. Having environment Food production has a massive impact on climate change and 65% of nitrous oxide emissions a year, which has 300 times the global warming potential as carbon dioxide. Once the product is produced, it’s then shipped from the farm to distributors, sometimes taking a global journey to finally reach your table.
As an environmentally responsible food produced by farmers and agriculturist, distributor and business like restaurant business and other food producing units under MSME’s are thriving and numerous efforts can help reduce environmental harm. Serving exclusively vegan food can help reduce the environmental harm of raising livestock, and local, organic food can reduce the impact of harmful pesticides and fertilizers.
MSME businesses and small units that are of manufacturing in nature realize the impact of climatic conditions like global warming, floods on business and beginning to take matters into their own hands. Around the world business are thriving and trying to inculcate by installing renewable energy sources themselves like solar panel or wind installer.
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Government efforts for sustainable Green MSME business in India
As per government data 6.5 crore MSMEs in India contribute close to 30 % of GDP of the world’s 5th largest economy, employing around 11 crore people and with a share in its exports of nearly 40 %.
The big manufacturing giants in India contribute approximately significant amount of carbon footprints consuming 50million metric tons of oil and energy. The number is huge considering growing demand and population growth. In comparison MSME’s and small business are far behind as they have limited capacity to take risk and the risks are both physical and transitional risk’s, leaving them vulnerable to climatic changes. Under such circumstances it becomes equally important for the government to intervene in the Green MSME projects and help them sustain.
The transition for MSMEs by using renewals and avoiding thermal power require funding and require policy action both at state govt.level and central govt. and such initiatives will demand huge investments and funding.
Financial Measures by SIDBI to help green initiative of MSME and SMB’s development.
For sustainable development of MSME’s, SIDBI (Small industries development bank of India) has a core agenda to support the green projects, initiative supporting green business. This is led by series of schemes led by SIDBI assisting in lending schemes to promote investment in clean production and energy efficient technologies / production processes under bilateral lines of credit from international agencies such as JICA, AFD and KfW.
Main objective of the finance based scheme of SIDBI
Provide financial products that enable climate and environment friendly investments to:
Promote energy saving in MSMEs in India
Reduce the emission of greenhouse gases, especially Carbon Dioxide (CO2) to contribute towards climate change mitigation.
Achieve a reduction or avoidance of emissions and pollution through the introduction of financial products for MSME development.
Support MSMEs towards development, up-scaling, demonstration and commercialization of innovative technology based project.
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