Small is Powerful

The report 'Small is Powerful' by the Green Economy Coalition advocates for the recognition and financial support of Local Green Enterprises (LGEs)—micro, small, and medium enterprises (MSMEs) that prioritize economic, environmental, and social impacts. Through case studies in India, Mongolia, Peru, Senegal, South Africa, Trinidad and Tobago, and Uganda, the document highlights how LGEs act as catalysts for resilient local economies but are frequently hindered by a lack of formal definitions, restrictive collateral requirements, and limited financial literacy.

• Local Green Enterprises (LGEs) are defined as MSMEs that utilize a 'triple bottom line' approach to assess economic, environmental, and social impacts. These firms are rooted in their communities, creating jobs and utilizing local resources to increase the economic resilience and security of national economies.
• A primary barrier to the growth of LGEs is the absence of formal definitions and taxonomies. Without a legal status or a clear definition of what constitutes a 'green enterprise,' it is difficult for policymakers to create incentives and for financial institutions to offer specialized funding.
• LGEs face significant financing hurdles, particularly regarding collateral requirements. Many entrepreneurs, especially women, lack the real estate or property ownership necessary to secure traditional bank loans, forcing them to rely on personal savings, family, or high-risk personal loans.
• The report identifies a critical need for financial literacy and streamlined application processes. Entrepreneurs in India and South Africa reported that cumbersome lending processes and a lack of awareness regarding government relief measures led to credit score damage and missed opportunities for expansion.
• Clustering and cooperative models are emerging as effective strategies to increase the visibility of LGEs and attract investment. Examples include the Mbarara Green Enterprises Association in Uganda, which provides a seed fund with a 2% interest rate—significantly lower than the 24% bank rate—to support women and youth.
• The document recommends that public and private finance institutions, as well as national policymakers, adopt specific measures to support LGEs. These include creating national definitions for LGEs, developing products for informal enterprises, and implementing incentive green tax systems.

APA

Green Economy Coalition (n.d.). Small is Powerful. https://www.greeneconomycoalition.org/assets/reports/GEC-Reports/Small-Is-Powerful-2023/Small_is_Powerful_Local_Green_Enterprises_FINAL_Jan23.pdf

Chicago

Green Economy Coalition. Small is Powerful. n.d. https://www.greeneconomycoalition.org/assets/reports/GEC-Reports/Small-Is-Powerful-2023/Small_is_Powerful_Local_Green_Enterprises_FINAL_Jan23.pdf.

Wikipedia

{{cite report |author=Green Economy Coalition |title=Small is Powerful |url=https://www.greeneconomycoalition.org/assets/reports/GEC-Reports/Small-Is-Powerful-2023/Small_is_Powerful_Local_Green_Enterprises_FINAL_Jan23.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greeneconomycoalitionndsmall, author = {{Green Economy Coalition}}, title = {{Small is Powerful}}, institution = {Green Economy Coalition}, url = {https://www.greeneconomycoalition.org/assets/reports/GEC-Reports/Small-Is-Powerful-2023/Small_is_Powerful_Local_Green_Enterprises_FINAL_Jan23.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }