ESG-Related Innovations in Bulgarian SMEs: Current Status and Future Directions

Abstract

The article examines the theoretical basis for the importance of Environment, Social Governance (ESG)-related innovations in the context of corporate culture and economic performance in Bulgarian Small and Medium Enterprises (SMEs). The research finds that ESG-related innovations are insufficiently implemented in these enterprises. It identifies major barriers, including limited resources and a lack of expertise, and highlights that businesses that are more engaged with ESG practices show improved competitiveness. The article also analyses the strategies used to enhance performance and the role of partnerships. Based on a survey of 344 company leaders and a micro-enterprise case study, the findings show that embracing ESG-related innovations can create development opportunities in a turbulent environment. The article concludes with recommendations for adopting a culture of socially responsible innovation and related management practices.