The sustainability of small and medium-sized businesses

EXTENDED ABSTRACT
 
Introduction: Business sustainability helps address or reduce environmental, social, and economic challenges through the strategic management of a company's resources. It seeks to improve a company's impact on the outside world. A sustainable business can foster positive relationships and trust among customers, employees, the community, investors, and other stakeholders. Additionally, a business sustainability program can reduce costs and enhance the long-term financial health of the organization. If a company spends less on electricity, water, and other resources, it can increase profits. Similarly, a company’s sustainability initiatives may improve business outcomes by enhancing its reputation within the community and among employees. Companies should regularly publish sustainability goals and report their progress in achieving them. This transparency helps employees and external parties understand how the business contributes to a sustainable global economy. Furthermore, these progress reports help maintain trust with stakeholders. The primary objective of this research is to identify and prioritize the factors influencing the sustainability of small and medium-sized enterprises (SMEs) in the city of Shahrekord. Given the importance of these businesses in economic and social development, identifying key factors that contribute to their long-term sustainability is essential. This study, focusing on various dimensions of sustainability (economic, social, and environmental), aims to provide a comprehensive model to improve the performance of these businesses and assist managers and policymakers in making better decisions.
Methodology: In the first stage, based on the literature and previous research, 6 main criteria and 35 sub-criteria influencing the sustainability of small and medium-sized enterprises were identified. Then, using the Delphi technique, these criteria and sub-criteria were screened, resulting in the selection of 6 main criteria and 24 sub-criteria for further analysis. This process led to the elimination of sub-criteria that were deemed less significant by the experts. In the next stage, using the Interpretive Structural Modeling (ISM) technique, the criteria and sub-criteria were ranked. The results showed that innovation and creativity were identified as the most influential factor, followed by supportive and regulatory factors, individual and managerial factors, and strategy in subsequent ranks.
 Discussion and Results: By reviewing the literature and analyzing the data, 6 main criteria and 24 sub-criteria were identified as key factors influencing the sustainability of small and medium-sized enterprises in Shahrekord.
 Conclusion: The results indicated that innovation and creativity play a crucial role in the sustainability of these businesses. This factor enhances flexibility and the ability to address challenges. Following this, supportive and regulatory factors (such as government support and banking facilities) and individual and managerial factors (such as adherence to sustainability ethics and positive managerial attitudes) were ranked next. These findings suggest that to achieve long-term sustainability, small and medium-sized enterprises must simultaneously focus on innovation, government support, and internal management improvement. This research provides a comprehensive model and practical solutions to enhance the sustainability of these businesses, helping managers and policymakers achieve sustainability goals by focusing on the identified key factors. Based on the analyses conducted using Delphi, ISM (Interpretive Structural Modeling), and MICMAC techniques, innovation and creativity were identified as the most influential criteria, directly impacting other factors such as social factors and corporate governance. These findings indicate that innovation and creativity not only serve as driving forces for business development but also form the foundation for building resilience and addressing challenges faced by small and medium-sized enterprises (SMEs). Social factors and corporate governance were identified as second-level criteria, directly influenced by innovation and creativity. These factors highlight the importance of social interactions, social responsibility, and transparency in business management. On the other hand, supportive and regulatory factors, individual and managerial factors, and strategy were identified as dependent criteria, reflecting the reliance of these businesses on government support, internal management, and marketing and advertising strategies. Key Takeaways:1) Innovation & Creativity – The most critical driver, shaping other sustainability factors; 2) Social Factors & Corporate Governance – Directly influenced by innovation, emphasizing ethical and transparent operations; 3) Supportive Policies, Management, and Strategy – Dependent factors, requiring external and internal alignment for long-term stability. This structural analysis underscores that fostering innovation is essential for SMEs to enhance adaptability, meet social responsibilities, and strengthen governance while relying on supportive policies and strategic management for sustained growth.