Aligning SMEs with Sustainability Principles

Abstract

Sustainability for small and medium-sized enterprises involves the balanced integration of economic, social, environmental and governance objectives into their daily activity. For SMEs, sustainable development does not only mean reducing negative environmental impact, but also using resources efficiently, strengthening responsibility toward employees and the community, respecting ethical principles and maintaining stable economic performance in the long term. The purpose of this paper is to analyze the main sustainability principles applicable to SMEs and to highlight their role in increasing competitiveness and resilience. The research methodology is based on qualitative analysis, comparative analysis and the examination of specialized literature and sustainability frameworks. The findings emphasize that the adoption of ESG principles contributes to improved operational efficiency, stronger stakeholder trust, better access to financing and long-term business stability. At the same time, SMEs face challenges related to limited financial resources, managerial expertise and access to green technologies. Therefore, sustainability should be integrated into the strategic development of SMEs and supported through institutional initiatives and simplified sustainability reporting frameworks. UDC: 334.72.012.63/.64:502.131.1; JEL: Q56, M14, L25