ABSTRACT
The major survey of the literature on small-scale enterprises and the environment (SME), Lawrence Kent noted that: 'Most literature on small-scale enterprises emphasises issues of efficiency and employment, ignoring environmental concerns'. Enterprises employing up to 50 workers are usually categorised in developing countries as SMEs. The number of studies that consider the environmental aspects of SMEs remains small. The few there are present some data on the pollution caused by small-scale industries and highlight policy and regulatory issues, particularly in relation to SMEs in urban areas. Much of the literature that does exist on SMEs and the environment is concerned with ways of reducing pollution. Voluntary compliance or 'informal regulation' has been advocated for pollution control in developing countries but has rarely been tested with the SME sector. A system of benchmarking based on this indicator would provide a useful guide to SMEs, to financial institutions and to enterprise promotion agencies.
