Resource efficiency in industrial SMEs: Drivers and effects on productivity

In many developing countries, SMEs are the backbone of economic and industrial activity, contributing to approximately 75% to industrial activity. With increasing resource prices, social awareness and environmental regulations, it is becoming difficult for SMEs to keep the same pattern in the use of energy, water, and material resources for production while remaining competitive in the market. However, some of them have implemented resource efficiency in cleaner production measures. A research project supported by IDRC was developed to explore drivers and relevant effects on resource efficiency in SMEs which are adapting the transition to a greener economy in two cities: Lima and Buenos Aires. As part of this study, we aim to explore industrial SMEs in Lima City. A survey of 307 SMEs was applied to stratified random samples which represent Lima industrial zones. Important factors were identified using Logit dichotomous model, it was applied to find out which are statistically significant. We concluded that some categories of good practices, efficiency energy and waste management are identified statistically significant to explain the decrease cost of production due to implementing environmental actions in industrial SMEs in Lima. These results and the Map of Resource efficiency SMEs will provide inputs for policy makers.