Small and medium-sized enterprises (SMEs) in regional areas of
Australia make significant contributions to the innovation and job growth
and stability in the Australian economy. While Regional Australian SMEs
contribute significantly to the economic development; they undoubtedly
have a significant impact on the environment and social community.
This paper examines effective factors on the adoption of sustainability
in SMEs operating in a regional city of Australia. First, measurement
scales for the impacting factors were developed and validated. Then the
paper used survey data from 237 SMEs in the regional city of Ballarat.
The paper also investigated any possible differences between the views
of owner/managers of small businesses and medium ones on factors
impacting the adoption of sustainability. Findings reveal that attitude,
commitment and knowledge of owner/managers of SMEs are the most
effective factors on the adoption of sustainable practices. Moreover,
there is a significant difference in the effect of owner/managers’
perceptions on their businesses’ impacts between small and medium-
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