Green Finance Challenges in the SME Sector: A Comparative Analysis of Entrepreneurs’ and Employees’ Perceptions
Author(s): Dr. Karuna Sharma, Dr. Aditya Kumar Sharma, Hari Krishan Sharma
Publication #: 2608017
Date of Publication: 09.12.2025
Country: India
Pages: 1-9
Published In: Volume 11 Issue 6 December-2025
DOI: https://doi.org/10.62970/IJIRCT.v11.i6.2608017
Abstract
Green finance can support small and medium enterprises that want to invest in cleaner technology or improve their environmental practices. Accessing it, however, may not be simple for a smaller business. This study examined whether SME entrepreneurs and employees in Rajasthan viewed the challenges of green finance differently. Data were collected from 174 respondents, comprising 42 entrepreneurs and 132 employees. Perceptions were measured through ten Likert-scale statements. Cronbach’s alpha was 0.800, indicating acceptable reliability. Frequencies, percentages, descriptive statistics and an independent-samples t-test were used. Concerns were more noticeable in relation to institutional guidance, collateral and financing costs. Responses concerning awareness, reporting requirements and suitable financial products were more mixed. Entrepreneurs reported greater concern than employees, and the difference between the groups was statistically significant. The findings suggest that SMEs may benefit from clearer information, simpler procedures and financing arrangements suited to their actual capacity.
Keywords: Green Finance; Small and Medium Enterprises; Green Finance Challenges; Entrepreneurial Perception; Employee Perception
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