A Conceptual Framework for Assessing Sustainable Development in Regional SMEs

Small and medium-sized enterprises (SMEs) are significant regional development agents. Therefore, if SMEs adopt sustainability and regional economic strategies at the same time, it enables local communities to benefit from sustainable development, innovation and economic development in their regions. In the SME literature, there is a lack of appreciation of the sustainability issue and its connection with its local community. Bringing together the relevant literature, this paper develops a sustainability assessment framework for SMEs by providing the internal and external drivers and inhibitors affecting the adoption of social and environmental friendly practices in SMEs within the regional context. This framework can be used as a basis for application in regional development. It will also be a valuable tool for evaluation and monitoring of strategies for sustainability adoption.