A Three Year Investigation into the Triple Bottom Line Performance of Small and Micro Social and Environmental Enterprises in Developing Countries

This report presents the results of a three-year investigation into the triple bottom line (TBL) performance of 1,337 small, medium-sized and micro enterprises (SMMEs) in developing countries. Conducted by the International Institute for Sustainable Development (IISD) for the SEED Initiative, the study analyzes the social, environmental, and business targets of these enterprises across three cohorts of applicants. It highlights the critical role of technology, skills training, and research partnerships in the 'green economy,' while identifying significant barriers such as lack of financing, inadequate local environmental enforcement, and gender-based disparities in business management capacity.

• Agriculture remains the dominant sector for social and environmental SMMEs, with training as the second most common activity. In the 2011 cohort (Cohort 3), climate change management emerged as the third most represented area of work, surpassing ecosystems management.
• There is a growing trend of SMMEs adopting 'for-profit' or hybrid business models, particularly in Africa. In Cohort 3, the percentage of enterprises identifying as private, for-profit entities rose to 26% from 17% in Cohort 2, while those identifying as not-for-profit dropped from 70% to 53%.
• SMMEs struggle to set clear and measurable triple bottom line targets. While over half can express social targets clearly, less than a third can set measurable social targets, and environmental targets are often vague or aspirational for 75% of respondents.
• Skills training is nearly universal among these enterprises, with 99% of Cohort 2 and 3 respondents providing training. Business management is the most conferred skill, reflecting a systemic need to build capacity within communities to support enterprise operations.
• The most critical environmental benefits sought by SMMEs are the protection of ecosystems, reduction of CO2, biodiversity preservation, and reduction of land degradation. For Cohort 3, CO2 reduction became the top priority.
• Financial sustainability remains a primary barrier; over 90% of respondents report lacking financing or access to investors and credit. While grants were the primary income source in Cohort 1, their importance has diminished by Cohort 3, though a third of enterprises still expect to rely on them.
• External enabling factors include collaboration with well-regarded community organizations and local government endorsement. Conversely, the absence of local-level environmental monitoring and enforcement is a significant barrier, cited as absent or partially available by 45% of respondents.
• Gender analysis reveals that women-led enterprises are more likely to focus on training and are more aware of missing enabling factors, such as business regulations and marketing strategies. Men-led enterprises report higher involvement in CO2 reduction (60% vs 46%) and the provision of technology access.
• In South Africa, SMMEs are heavily focused on agriculture, health, and social services. While they show higher access to research and technical partners than the global cohort, they face acute challenges with local environmental enforcement and a lack of secure funding.

APA

Creech, H., Paas, L., & Voora, V. (2012). A Three Year Investigation into the Triple Bottom Line Performance of Small and Micro Social and Environmental Enterprises in Developing Countries. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/investigation_tripple_bottom_line.pdf

Chicago

Creech, Heather, Leslie Paas, and Vivek Voora. A Three Year Investigation into the Triple Bottom Line Performance of Small and Micro Social and Environmental Enterprises in Developing Countries. International Institute for Sustainable Development, 2012. https://www.iisd.org/system/files/publications/investigation_tripple_bottom_line.pdf.

Wikipedia

{{cite report |last1=Creech |first1=Heather |last2=Paas |first2=Leslie |last3=Voora |first3=Vivek |title=A Three Year Investigation into the Triple Bottom Line Performance of Small and Micro Social and Environmental Enterprises in Developing Countries |publisher=International Institute for Sustainable Development |date=May 2012 |url=https://www.iisd.org/system/files/publications/investigation_tripple_bottom_line.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{creech2012three, author = {Creech, Heather and Paas, Leslie and Voora, Vivek}, title = {{A Three Year Investigation into the Triple Bottom Line Performance of Small and Micro Social and Environmental Enterprises in Developing Countries}}, institution = {International Institute for Sustainable Development}, year = {2012}, month = may, url = {https://www.iisd.org/system/files/publications/investigation_tripple_bottom_line.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }