Factors Affecting the Growth and Survival of SMEs in the Context of the Sustainable Industry.

Abstract

This article aimed to 1) examine the levels of circular economy factors, corporate social responsibility factors, and the growth and survival of SMEs; 2) analyze circular economy factors affecting the growth and survival of SMEs; and 3) analyze corporate social responsibility factors affecting the growth and survival of SMEs in the context of sustainable industry. This quantitative research employed Boulding’s (1966) circular economy concept, the ISO 26000 framework of corporate social responsibility, and Kaplan and Norton’s (1992) Balanced Scorecard as the research framework. The sample consisted of 325 SME entrepreneurs in Thailand certified at Green Industry Level 1, selected from a population of 949 by systematic random sampling. The research instrument was a five-point rating scale questionnaire. Data were analyzed using descriptive statistics and multiple regression analysis at the .05 level of statistical significance. The findings revealed that 1) circular economy factors, corporate social responsibility, and the growth and survival of SMEs were overall at a high level, with mean scores of 4.31, 4.41, and 4.49, respectively; 2) the circular economy factors significantly affecting the growth and survival of SMEs were natural resource regeneration, waste and pollution elimination, and product and material circulation, with a predictive power of 39.1 percent; and 3) the corporate social responsibility factors significantly affecting the growth and survival of SMEs were community and social development, environmental protection, and consumer responsibility, with a predictive power of 74.1 percent. The findings indicate that the growth and survival of SMEs require the integration of resource, social, and managerial dimensions to support sustainable business management in the Thai context.