Navigating the Challenges and Benefits of Sustainability Reporting: Lessons from SMEs
Abstract
The awareness of sustainability practices among SMEs has grown in many countries. However, there are issues in their abilities in reporting financial or nonfinancial performance related to sustainability, such as the lack of resources and capabilities to conquer the barriers in reporting, while there are many benefits can come along with sustainability reporting, such as transparency and accountability. This study conducts a structured literature review (SLR) to synthesize and evaluate the growing studies on sustainability reporting (SR) among small and medium enterprises (SMEs), focusing on the challenges and benefits in the implementations across countries. Based on 31 reviewed studies from reputable journals, published between 2009 and 2025, the review showed how SMEs across countries start to integrate sustainability reporting using technologies. Most of studies reveal that SR is beneficial in increasing transparency, accountability, stakeholder trust, operational efficiency, and innovation. The results indicated that SMEs still face the significant challenges such as financial, technical, and administrative barriers. Those burdens can hinder widespread adoption among SMEs. This literature review contributes to theories by integrating perspectives of implementing SR in SMEs. Furthermore, practically, this review highlights the importance of simplified and proportionate sustainability frameworks to enhance the opportunities of adopting SR in small firms.
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