Evaluating the role of enterprise policies in purposive sustainability transitions: a case-based comparison

Objectives: To examine how policy tools can be used to improve the environmental performance of SMEs and to redirect entrepreneurial energies towards environmentally-sustainable goals. Prior Work: A review of relevant policy literature and data on environmental performance and impacts is used to establish the importance of SMEs and entrepreneurial actors in relation to environmental sustainability, and to frame the subsequent discussion about the role of enterprise policies in facilitating this process. Approach: The paper contains a short case-based comparative study, which indicates how policy tools have been deployed in different combinations in pursuit of sustainability goals. Results: The first two case-based illustrations show how different forms of policy intervention have been introduced in an effort to address specific environmental issues. While some of these interventions have proved effective in their own terms, there is an urgent requirement for more integrated approaches capable of addressing more complex and deep-rooted sustainability challenges, such as resource depletion and global climate change. The third case indicates how the socio-technical transitions framework, which exemplifies a more holistic perspective, might be modified in order to better reflect the contribution of entrepreneurial actors. Implications: Key lessons from the paper include the need to: (i) clarify the purpose of any intervention, taking into account potential interactions with other policies; (ii) select appropriate tools based on a careful review of the available options; (iii) address specific characteristics of the target group; and (iv) recognise that outcomes are the product of multi-level interactions between entrepreneurs and owner-managers, their enterprises, and the sectoral and geographic contexts in which they operate. Value: Governments around the world are increasingly committed to promoting more environmentallysustainable economic activity. In the context of widespread fiscal constraints, greater attention is being paid to the role of SMEs and entrepreneurial actors in promoting sustainability goals. This review is designed to stimulate debate on the framing of future policies in this area.