Author(s) :

Keshav Raghavan.

Volume/Issue :

Abstract :

Small and medium-sized businesses (SMBs) account for 90% of enterprises in the United States and contribute significantly to the national economy. However, they encounter major challenges in accessing capital for sustainability projects and green innovation that could hinder progress toward the U.S. government’s climate goal of achieving net-zero greenhouse gas emissions by 2050. This study draws on original survey data from 42 SMBs across multiple industries in South Florida and finds a significant gap between SMBs’ interest in sustainability finance and their ability to access available resources. While 90% of surveyed SMBs expressed interest in funding sustainability projects, all respondents identified complex financial channels as a major deterrent. Moreover, only 20% had any knowledge of federal and state-sponsored loan programs that incentivize green investments. Using a combination of primary survey data, secondary policy and market research, this study reveals that barriers to SMB sustainability finance are more informational and structural than capital-related. Additionally, the findings of this research highlight the importance of targeted interventions to improve access to sustainability finance that can help unlock green innovation potential for American SMBs in the context of national climate goals and economic competitiveness.