Globally, the micro and small enterprises sector generate substantial employment and economic output. These dynamic enterprises contribute to economic development in several ways: converting innovative ideas into economic opportunities, revitalizing social and productive networks, and increasing productivity.

SEED has worked closely with the International Institute for Sustainable Development (IISD) since 2007 on a programme of research to increase technical knowledge and understanding about small-scale social and environmental enterprises. Based on the research and Symposia consultations, SEED was able to publish the following Guidance for Policy Makers, which provides new insights into the role of micro and small social and environmental enterprises as essential actors in building green economies. It is designed to:

• Present the evidence base for the contributions these enterprises make and the enabling conditions required to succeed, drawing from three years' of SEED's survey, case study, and field research with over 1300 enterprises in developing countries;
• Incorporate views from national and international experts and decision-makers on the place of entrepreneurs in driving economic, social and environmental change, drawing from SEED's international Symposia on Entrepreneurship and the Green Economy in 2011 and 2012;
• Propose recommendations to both national and international policymakers to strengthen and support social and environmental micro and small enterprises.

Fourteen major findings came to light:

1. There is a need to bridge macro strategies with implementation at the local level
2. The Green Economy must be people-centered and have poverty alleviation as a prime goal
3. The contributions of social/environmental enterprises to poverty alleviation and economic development may be undervalued
4. The social issues addressed by these enterprises are wide-ranging and complex
5. These enterprises are front-line environmental service providers
6. Public environmental education is not just values-driven - it is a business issue for SMMEs
7. Innovation and investment are essential components for moving to the Green Economy
8. The green economy requires a wide variety of skills
9. New hybrid entities and business models are emerging, and reliance on traditional development assistance is shifting to a mix of revenue streams
10. The financial viability and sustainability of these enterprises is uncertain
11. Monitoring, reporting and adaptive learning are essential mechanisms for building the Green Economy
12. Policymakers seeking to promote the scale-up and replication of success must understand the necessary preconditions and critical factors for success
13. Partnerships across institutions, sectors, and states are essential to achieve the necessary policy coherence and implementation on the ground
14. Potential gender-based barriers in the Green Economy must be recognized

To view the full report and read SEED' analysis for policymakers, click here.

To view other SEED reports, including the longitudinal studies and the symposia reports, click here.