Drivers and Barriers in the Carbon-Neutrality Journey of SMEs in Developed Economies — Insights from a Systematic Review and Bibliometric Study

Achieving carbon neutrality is crucial for mitigating the escalating global climate crisis and meeting international climate commitments. Developed countries have set ambitious targets for carbon neutrality by mid-century, aligning with the global effort to limit warming to 1.5∘C above pre-industrial levels, as stipulated in the Paris Agreement. Small and medium-sized enterprises (SMEs), which form the backbone of developed economies and account for the majority of businesses, are pivotal in realising these climate objectives. While individual SMEs emit lower levels of carbon compared to large corporations, their collective contribution to national emissions is significant. This study investigates the critical role of SMEs in the transition towards carbon neutrality across developed nations. Through an in-depth bibliometric analysis, this research systematically maps the existing literature on SMEs and carbon neutrality, offering insights into key research trends, focal areas, prolific authors, leading journals, and collaborative networks. These insights illuminate how SMEs contribute to national and global carbon reduction efforts. Additionally, a systematic literature review, guided by the PRISMA framework, identifies the principal drivers and barriers influencing SMEs’ progress towards sustainability. Key drivers include regulatory pressure, market demand, cost efficiency, and leadership commitment, while significant barriers encompass financial constraints, knowledge gaps, supply chain complexity, and organisational inertia. The findings enrich the body of knowledge by highlighting the challenges and opportunities faced by SMEs in developed economies, emphasising the need for tailored policies and support mechanisms to enhance their capacity to reduce emissions and foster environmental stewardship.