Small and Medium Enterprises’ Green Energy Strategies for Profitability

Lack of business strategies can negatively impact the generation of green energy, which may hinder business profitability and growth. Managers of small and medium enterprises (SMEs) who struggle to generate green energy to increase profitability are at high risk of their business failure. Grounded in the diffusion of innovation theory, the purpose of this qualitative multiple case study was to explore the business strategies managers of SMEs use to generate green energy to increase profitability. The participants were three SME managers in three energy companies in Lagos, Nigeria, who effectively used business strategies to generate green energy to increase profitability. Sources for data collection were semistructured interviews, company archival documents, and field notes. Data analysis involved the use of thematic analysis. Four themes emerged: financing support, renewable energy technology and efficiency systems, education and communication, and customer service and quality of service. A key recommendation is for SME owners to organize seminars and workshops for managers on effective strategies to generate green energy to increase profitability and sustain their businesses. The implications for positive social change include the potential for managers of SMEs to create job opportunities, provide social amenities and welfare, promote a clean environment, and support the economic development of the regional communities