Segmenting SMEs in Central Europe’s coal mining region based on green finance awareness

Abstract

The European Commission estimates that at least €1 trillion in sustainable investments will be needed over the next decade. Central and Eastern Europe countries face unique challenges to secure financing for their green transition due to their economic and political background. Among all of the players in the global economy, SMEs significantly impact the environment but face barriers in the adoption of green practices and sustainable investments. Despite the potential benefits of green investments, SMEs often lack awareness and resources to engage in sustainable initiatives effectively. The aim of the research is to investigate the awareness of SMEs of green financing tools. Our focus is set on the identification of similarities and differences between companies and the creation of segments based on different levels of knowledge of green financing and their overall financial situation. The research used a survey-based approach, focusing on SMEs in the Silesian Voivodeship (Poland), a region with a strong industrial heritage and undergoing green transformation. The data was collected from 200 Polish SMEs in the Silesian region and analysed by factor and cluster analysis. Responses were analysed to identify attitudes, levels of awareness, and readiness for green financing. The segmentation reveals distinct profiles regarding financial health and engagement with green finance. It is possible to create two segments of passive idealists and informed realists. Both acknowledged that green investments are more financially demanding. However, the informed realists displayed higher levels of engagement with green financing, including seeking and receiving expert advice and understanding application processes. Limitations include the regional focus and a reliance on subjective self-assessment by firms.