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Sustainable Practices in Small and Medium-Sized Enterprises in Ecuador

Author

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  • Paúl Sarango-Lalangui

    (Department of Business Science, Universidad Técnica Particular de Loja (UTPL), Loja 11-01-608, Ecuador
    Department of Business, University of Barcelona, 08034 Barcelona, Spain)

  • José Álvarez-García

    (Financial Economy and Accounting Department, Faculty of Finance, Business and Tourism, University of Extremadura, 10071 Cáceres, Spain)

  • María De la Cruz Del Río-Rama

    (Business Organisation and Marketing Department, Faculty of Business Administration and Tourism, University of Vigo, 32004 Ourense, Spain)

Abstract

Small and medium-sized enterprises (SMEs), as well as larger enterprises, generate economic, social, and environmental impacts on their environment. However, in the case of these types of enterprises, the accumulation of these impacts is very significant in the immediate surroundings where they offer their products and services. This discussion is particularly relevant in Ecuador, where 99% of all enterprises are SMEs. The objective of this research is to find out if small and medium-sized enterprises in this country are involved in the adoption of sustainable practices as well as see if there are significant differences in adoption based on size, sector, and age. The methodology used is the performance of a descriptive analysis and regression of the data obtained through a structured questionnaire (indicators of the Ethos Institute of Brazil). Previously, the reliability of the questionnaire was validated through an exploratory factor analysis. The target population consists of 9843 enterprises, obtaining a sample size of 188 valid surveys, which implies a response rate of 2%, representing a sampling error of ±7.08%. The results obtained enabled us to perform a sustainability diagnosis of SMEs in Ecuador, identifying the strengths and weaknesses. The managers have a positive and favourable attitude towards sustainability. The practices considered show a medium-high implementation level of 79.71% in economic sustainability, 82.28% in social sustainability, and 78.14% in environmental sustainability in the enterprises considered in the sample. Although these percentages are significant, there is plenty of scope for improvement.

Suggested Citation

  • Paúl Sarango-Lalangui & José Álvarez-García & María De la Cruz Del Río-Rama, 2018. "Sustainable Practices in Small and Medium-Sized Enterprises in Ecuador," Sustainability, MDPI, vol. 10(6), pages 1-15, June.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:6:p:2105-:d:153491
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    2. Reginald Masocha, 2019. "Social Sustainability Practices on Small Businesses in Developing Economies: A Case of South Africa," Sustainability, MDPI, vol. 11(12), pages 1-13, June.
    3. Malesios, Chrisovalantis & De, Debashree & Moursellas, Andreas & Dey, Prasanta Kumar & Evangelinos, Konstantinos, 2021. "Sustainability performance analysis of small and medium sized enterprises: Criteria, methods and framework," Socio-Economic Planning Sciences, Elsevier, vol. 75(C).
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    6. Claudia Dias & Ricardo Gouveia Rodrigues & João J. Ferreira, 2022. "Linking natural resources and performance of small agricultural businesses: Do entrepreneurial orientation and environmental sustainability orientation matter?," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(4), pages 713-725, August.
    7. Malesios, Chrisovalantis & De, Debashree & Moursellas, Andreas & Dey, Prasanta & Evangelinos, Konstantinos, 2019. "Review of Statistical Modeling Approaches for Sustainability Analysis of Small and Medium sized Enterprises," MPRA Paper 93028, University Library of Munich, Germany.

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