Small is Powerful

The report highlights the transformative potential of micro, small, and medium enterprises (MSMEs) that operate with a 'triple bottom line' approach to benefit local environments and communities. It identifies systemic barriers to growth, including a lack of formal definitions for 'green enterprises,' prohibitive collateral requirements for loans, and a lack of financial literacy among entrepreneurs. Through case studies in India, Mongolia, Peru, Senegal, South Africa, Trinidad and Tobago, and Uganda, the document demonstrates how LGEs—ranging from organic farming and waste recycling to sustainable fisheries—are often excluded from public and private investment. The report concludes with recommendations for public finance institutions, private investors, and national policymakers to implement global taxonomies, support clustering models, and develop specific financial products for informal and micro-scale green businesses.

• Local Green Enterprises (LGEs) are defined as MSMEs that use a 'triple bottom line' approach to create positive economic, environmental, and social impacts, thereby increasing the economic resilience of national economies.
• A primary barrier to scaling LGEs is the absence of formal definitions or a global taxonomy, which prevents policymakers and financial institutions from creating targeted incentives and funding mechanisms.
• Financial institutions frequently exclude LGEs from investment due to cumbersome lending processes and high collateral requirements, which disproportionately affect women and youth who often lack property ownership.
• Clustering models and community directories, such as the economiaverde.pe directory in Peru, help small green enterprises gain visibility, create synergies, and attract potential investors.
• Informal LGEs face significant risks and lack of support, often relying on personal loans or family funds because they lack the legal status required by banks for special funding.
• Beyond direct finance, LGEs require 'connective infrastructure' including green skills academies, financial literacy programs, and mentoring to successfully transition and scale.

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} }