Sustainability Practices in SMEs: An Explorative Study on Ethnic Minority–Owned SMEs in the United Kingdom

ABSTRACT The application of firm sustainability practices (FSP) in ethnic minority–owned small and medium–sized enterprises (ESMEs) has received significantly less scholarly focus, making ESME FSP an emerging academic field. This study aims to explore the factors influencing ethnic minority–owned SMEs involved in FSP and identify the factors hindering these SMEs' sustainability practices. Grounded in the theory of planned behaviour (TPB), this qualitative research study interviewed a total of 20 small and medium enterprises (SMEs) owned by British‐Bangladeshi individuals in the United Kingdom. The thematic analysis method was followed to analyse the interview data and extract/explore the research findings. The main influencing factors on SMEs' sustainability practices have been categorised into two broad groups: the influence of owners' personality and religious and cultural influences. The current research has revealed several factors that hinder ESMEs' intentions to engage in sustainability practices, namely, the SMEs' misconceptions of perceived efforts and sustainability practices outcomes, lack of awareness and confusion about the business's social role, lack of institutional support, and barriers to building strong public relations around SMEs and their sustainability‐related activities. The findings of the study contribute to the limited sustainability literature in the niche research context of ESMEs. The results will be useful for various stakeholders, including policymakers, government bodies and other regulators, to devise suitable policies and provide the necessary support for enhancing sustainability practices in SMEs.