ABSTRACT
This chapter examines the kinds of intervention tools that are being used to improve the environmental performance of small and medium-sized enterprises (SMEs), and to guide entrepreneurial energies towards more environmentally benign goals. It outlines the main options available to policymakers; compare specific intervention tools, noting their strengths and limitations. It also discusses the case for adopting more holistic approaches to address the pervasive, complex and often deeply-rooted challenges of sustainable development. Key lessons are that policymakers need to select appropriate combinations of tools based on careful reviews of the evidence, and that well-integrated, context-sensitive policies are likely to prove the most effective. Governments around the world are taking an increasing interest in promoting environmentally-sustainable economic activity. The application of systems thinking is most fully developed in the Netherlands, where the 'transitions management' (TM) approach has been formally adopted. TM policies recognise the need for a variety of actors, including entrepreneurs, SMEs, larger firms, community organisations and government agencies.
