INTEGRATING SUSTAINABLE ECONOMIC PRINCIPLES INTO THE MSMEs ECOSYSTEM TO SUPPORT SDGs ACHIEVEMENT

Abstract

The application of sustainable economic principles is a global priority in facing the challenges of climate change, social inequality and the need for inclusive development. Micro, Small and Medium Enterprises (MSMEs), which contribute a significant portion to the global economy, have a strategic role in supporting the achievement of the Sustainable Development Goals (SDGs). This research aims to analyze the integration of sustainable economic principles in the MSMEs ecosystem with a collaborative approach that connects the government, business world stakeholders and global partners. This research uses the Triple Bottom Line theory according to John Elkington (1994) which emphasizes balance between economic, social and environmental aspects.. The research method used was qualitative with desk studies and in-depth interviews with MSMEs in the agricultural, manufacturing and service sectors. Data is analyzed to identify successful sustainability practices and barriers faced. The results of the study show that the application of sustainable economic principles to MSMEs has the potential to increase operational ef iciency, reduce environmental impacts and increase competitiveness. The main supporting factors are access to environmentally friendly technology, training on sustainable development and collaboration with international organizations. However, barriers such as a lack of knowledge about sustainability, limited capital, and suboptimal regulations have hampered wider implementation. The study findings highlight the importance of a supportive business ecosystem, including government incentives, sustainable infrastructure support, and cross-sector collaboration. With effective integration, MSMEs can become key players in achieving a sustainable economy and supporting the achievement of the SDGs comprehensively.