Article
Impact of Environmental, Social, and Governance (ESG) Practices on Entrepreneurial Performance and Sustainability of Indian MSMES
Environmental, Social and Governance (ESG) Practices have become significant contributors to sustainable business growth and organization competitiveness. This study investigates how Entrepreneurial Performance and Entrepreneurial Sustainability of Indian Micro, Small and Medium Enterprises (MSMEs) are affected by ESG practices. A descriptive and analytical research design was used and primary data was gathered from 200 MSME owners, entrepreneurs and managers using a structured questionnaire. The collected data were analyzed descriptively in SPSS, and multiple regression analysis was used. The results indicate that the level of ESG adoption by MSMEs is relatively high, with governance having the highest rate of adoption. According to the regression results, entrepreneurial performance and sustainability are greatly and positively influenced by environmental, social and governance practices, with governance practices on the highest ranking environmental variable. The study demonstrates that embedding ESG principles increases the resilience, efficiency, trust and sustainability of business. The findings highlight the significance of the ESG integration steps taken by MSMEs and the necessity of ESG awareness creation and capacity building among MSMEs for supporting sustainable business practices.