Navigating Climate Change: Climate Change Awareness and Strategies in Micro, Small, and Medium-Sized Enterprises in a Developing Economy

Given the limited research on climate change (CC) strategies and awareness among micro, small, and medium-sized enterprises (MSMEs), this study aims to address two key questions: To what extent are MSMEs aware of CC and decarbonization? How do MSMEs strategize to address CC and achieve carbon neutrality? Drawing on theoretical insights from the Attention-Based View, we analyze CC awareness and strategies among 1,453 Colombian ventures, seeking to identify common patterns and traits among them. Our findings reveal a significant gap in MSMEs' understanding of essential concepts such as carbon neutrality, decarbonization, and the overall impacts of CC on their businesses. Moreover, the results indicate that most MSMEs exhibit greater awareness of CC-related strategies at the corporate practice level compared to those aimed at operational processes. On average, respondents estimate that achieving carbon-neutral emissions will take between five to twenty years. To address these findings, we propose scholarly, managerial, and policy implications aimed at enhancing CC awareness and promoting effective CC-related strategies across MSMEs from various economic sectors. This article provides a comprehensive analysis of CC strategies and awareness in a significant population of business organizations in a developing economy, serving as a catalyst for public policy creation.