THE EFFECT OF GREEN ENTREPRENEURSHIP ON SMALL AND MEDIUM ENTERPRISES (SMEs) IN INDIA: AN ANALYTICAL STUDY

Abstract

Environmental degradation and climate change have compelled economies to adopt sustainable business models. Green entrepreneurship-defined as business activity that minimizes environmental harm while ensuring commercial viability-has emerged as a significant component of modern economic development. This paper evaluates the effect of green entrepreneurship on India’s Small and Medium Enterprises (SMEs) by analysing trends in start-up growth, employment generation, production, sales, GDP contribution, and exports. The study utilizes secondary data from DPIIT, MSME Annual Reports, RBI, Economic Survey, and DGCIS. The findings reveal that India has experienced a substantial rise in start-ups from 504 in 2016 to 34,847 in 2023 with corresponding job creation expanding exponentially. MSMEs also demonstrated continuous growth in production and sales, although employment levels remained stable, indicating rising efficiency and technological adoption. The MSME contribution to GDP and exports affirms their role as a backbone of the Indian economy. Literature further supports that green entrepreneurship enhances SME competitiveness, reduces operational costs, strengthens brand value, and opens access to niche green markets.