Business Actors' Understanding of Green Economy Practices: A Qualitative Study of Environmentally Oriented Local Enterprises

Abstract

The global green economy agenda has increasingly positioned micro, small, and medium enterprises (MSMEs) as both contributors to and potential beneficiaries of environmentally sustainable economic growth. Yet how local business actors themselves understand, interpret, and enact green economy principles in their day-to-day operations remains significantly underexplored, particularly in culturally diverse developing-economy contexts. This systematic review synthesises 40 peer-reviewed qualitative and mixed-methods studies published between 2021 and 2025, following PRISMA guidelines and employing a phenomenological analytical framework, to examine the meanings business actors ascribe to green economy practices and the conditions that enable or constrain their adoption. Four central themes are identified: (1) green economy is predominantly understood through an efficiency-and-waste-reduction lens rather than as a systemic business transformation; (2) environmental, economic, and social dimensions of green practice are enacted unevenly, often without explicit conceptual framing; (3) internal motivational factors, cultural values, and green entrepreneurial orientation are primary drivers; and (4) capital constraints, knowledge gaps, and regulatory ambiguity are the primary barriers, especially for micro-enterprises. Comparative analysis of Indonesian domestic and international evidence reveals convergent patterns in the centrality of cost-motivated eco-efficiency, but divergent pathways shaped by cultural heritage, institutional context, and policy maturity. The study's novelty lies in its phenomenological synthesis of how subjective meaning-making processes shape green economy understanding and practice at the enterprise level. Implications are drawn for policymakers, green finance providers, and business development programme designers.