Bridging the ESG awareness gap: challenges and opportunities for SMEs in North Macedonia

The growing emphasis on Environmental, Social, and Governance (ESG) principles highlights the need for SMEs to integrate sustainable practices into their operations. However, ESG adoption in SMEs remains a challenge due to limited awareness, financial constraints, and lack of standardization and regulation. This study investigates ESG awareness among SMEs in North Macedonia based on a comprehensive survey assessing their knowledge, attitudes, and practices. The survey explores key ESG dimensions, including environmental responsibility, social impact, and corporate governance, as well as barriers to implementation. Findings indicate varying levels of ESG awareness, with gaps in knowledge about regulatory requirements, measurement of carbon emissions, and ethical governance practices. The study also examines the willingness of SMEs to adopt ESG strategies, including participation in ESG training, ethical sourcing, and renewable energy investments. Additionally, the research highlights the role of policy incentives, industry support, and stakeholder engagement in fostering ESG compliance. By analyzing the impact of ESG integration on business competitiveness and sustainability, the study provides practical recommendations to enhance ESG adoption in SMEs. Strengthening ESG awareness and implementation will contribute to responsible business conduct and long-term economic growth in North Macedonia.