Building a Sustainable Future: The Role of Green Innovation and Green Premium in Transforming Indian SMEs

Abstract

In the evolving economic landscape of India, Small and Medium Enterprises (SMEs) play a critical role in shaping the country's industrial and economic future. This qualitative research paper explores how green innovation and the concept of green premium contribute to the holistic upliftment of Indian SMEs. By examining case studies of frugal entrepreneurs, and critically examining their green innovations which are being sold at a green premium, this study provides insights into the benefits and challenges associated with adopting green practices. The findings suggest that green innovation and the associated green premium can be powerful tools for enhancing the competitiveness, sustainability, and economic resilience of SMEs in India. Further, the study through in-depth case exploration identifies how SMEs from an emerging economy are now focusing on building a sustainable business and imparting longevity in their business by focusing more on innovation, strategy building, sustainability, and being more quality-driven than quantity-driven. Further, the research paper gives a new viewpoint towards SMEs by depicting them as more courageous, better managed, and open to innovation and changes rather than being more fearful and restricted to changes thereby focusing on crafting a whole new image of SMEs which makes them more future-ready and stable.