ENVIRONMENTAL SUSTAINABILITY AND PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES (SMES) IN NORTH-CENTRAL NIGERIA

Abstract

This study examined the effect of environmental sustainability practices on the business growth of Small and Medium Enterprises (SMEs) in North-Central Nigeria, focusing on waste management, renewable energy, water conservation, and the moderating role of firm size. A mixed-methods research design was adopted, combining survey data from 2,559 SMEs with qualitative interviews across seven states. Quantitative analysis was conducted using descriptive statistics and Partial Least Squares Structural Equation Modelling (PLS-SEM), while thematic analysis provided contextual insights. Findings revealed that waste management, renewable energy, and water conservation, demonstrated weaker or indirect statistical effects on SME growth. However, qualitative evidence highlighted their operational, reputational, and continuity benefits. Firm size demonstrated a significant moderating effect on SME growth underscoring organizational scale in driving performance. The study concluded that environmental practices are limited by financial and infrastructural barriers, which reduce their immediate impact on SME growth. Firm size further amplifies the adoption and benefits of sustainability, positioning larger SMEs to leverage scale for competitive advantage. The research contributes to knowledge by integrating environmental sustainability into SME growth models, providing insights both theoretical and practical. It recommends tailored support for SMEs through subsidies, training, concessional loans, and policy frameworks that facilitates inclusive and scalable adoption of environmental sustainability practices to strengthen long-term competitiveness and adaptability.