Sustainable Business Challenge: SMEs, Investment and Economic Impact
Abstract
Small and Medium Enterprises (SMEs) drive economic growth yet transitioning to SustainableProduction Systems (SPSs) involves complex trade-offs. This cross-border research project conducted by
Belmont University (USA), Zuyd University of Applied Sciences (Netherlands), and the Sustainable
International Business Research Center (Netherlands) explores key factors influencing SME investment in
sustainability.
For this study, we integrate European and U.S. SME definitions. In the EU, SMEs include small
businesses (10–49 employees, turnover or balance sheet ≤ €10 million) and medium businesses (50–249
employees, turnover < €50 million). In the U.S., the Small Business Administration (SBA) defines SMEs
as businesses with fewer than 500 employees, though industry standards vary. To ensure consistency, we
use 500 employees as our upper threshold when analyzing SME investment behavior across both
economies.
Through structured research, student teams examine firm characteristics, risk behavior, capital constraints, cost-benefit trade-offs, externalities, and market incentives shaping sustainability adoption. Teams analyze literature, conduct SME interviews in the U.S. and Netherlands, and apply qualitative economic analysis. Weekly online lectures and coaching sessions guide research design, data collection, and thematic analysis, culminating in a final presentation of findings and strategic recommendations.