Social and Environmental Enterprises in the Green Economy

The report examines the role of small, micro, and medium enterprises (SMMEs) in driving a 'pro-poor' green economy in developing countries. Based on a three-year study of over 1,300 enterprises, it finds that these entities provide critical environmental services and poverty alleviation but face significant barriers, including limited access to finance, technical expertise, and a disconnect between national macro-strategies and local implementation. The document argues for a shift toward hybrid business models and the adoption of Triple Bottom Line planning to ensure financial sustainability and measurable impact.

• There is a significant disconnect between national-level green economy strategies and the micro-level actions of social and environmental enterprises, necessitating a bridge between macro strategies and local implementation.
• Social and environmental enterprises contribute to poverty alleviation by supplementing community incomes, though these contributions are often undervalued or overlooked by national economic planners.
• These enterprises act as front-line environmental service providers and often advocate for legislative reforms, yet they are hindered by a lack of local-level environmental monitoring and enforcement.
• Access to research and technical partners is as critical as financing for success; nearly half of the studied enterprises rely on such partnerships to manage environmental impacts.
• A lack of skilled personnel at the local level is a primary barrier to success, with half of year-three respondents stating that skilled people were absent or only partially available.
• There is a trend toward 'hybrid' business models, with a decreasing reliance on grants; the percentage of respondents relying on grants fell from the first year to only 10% by the third year.
• Financial sustainability remains uncertain due to a lack of access to investors, loans, and lines of credit, as start-up social enterprises often fail to meet traditional collateral requirements.
• Triple Bottom Line (TBL) planning—setting goals across social, environmental, and business dimensions—is essential for SMMEs to engage investors and measure their actual impact.
• Gender-based barriers exist in the green economy, with women-led enterprises showing lower involvement in introducing new technologies and less access to external technical expertise.

APA

Creech, H., Huppé, G. A., Paas, L., & Voora, V. (2012). Social and Environmental Enterprises in the Green Economy. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/social_environmental_enterprises.pdf

Chicago

Creech, Heather, Gabriel A. Huppé, Leslie Paas, and Vivek Voora. Social and Environmental Enterprises in the Green Economy. International Institute for Sustainable Development, 2012. https://www.iisd.org/system/files/publications/social_environmental_enterprises.pdf.

Wikipedia

{{cite report |last1=Creech |first1=Heather |last2=Huppé |first2=Gabriel A. |last3=Paas |first3=Leslie |last4=Voora |first4=Vivek |title=Social and Environmental Enterprises in the Green Economy |publisher=International Institute for Sustainable Development |date=May 2012 |url=https://www.iisd.org/system/files/publications/social_environmental_enterprises.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{creech2012social, author = {Creech, Heather and Huppé, Gabriel A. and Paas, Leslie and Voora, Vivek}, title = {{Social and Environmental Enterprises in the Green Economy}}, institution = {International Institute for Sustainable Development}, year = {2012}, month = may, url = {https://www.iisd.org/system/files/publications/social_environmental_enterprises.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }