Navigating climate change: Climate change awareness and strategies in micro, small, and medium-sized enterprises in a developing economy

PLOS One | https://doi.org/10.1371/journal.pone.0327165 July 2, 2025 11 / 26 Risk perception: Who is most affected by climate change impact Afterward, we examined the risk perception of each type of venture regarding CC. Respondents assessed potential impact pathways, distinguishing between internal risks (i.e., the initial and most prominent CC effects on the venture itself) and external risks (i.e., the initial and most prominent CC effects on business partners such as suppliers or customers). Table 3 presents the identified risk perception and the corresponding Perceived Impact Probability (PIP). Specifically, most of the sample considers an internal impact pathway as the most likely (PIP = 0.54), followed by an external path (PIP = 0.32). Additionally, a smaller proportion of respondents believe that CC will not affect anyone (PIP = 0.09) or they lack enough information to perceive a risk (PIP = 0.01). Table 3 presents the results according to each subsample. The MSMEs subsample perceived an internal risk as most likely (PIP MSMEs = 0.59), in contrast to the other subsamples (PIP SBO = 0.50; PIP SE = 0.50). Besides, the SBO subsample perceived an external risk path as most likely (PIP SBO = 0.36), compared to other subsamples PIP MSMEs = 0.25; PIP SE = 0.35). More so, we observe that the MSMEs (PIPMSMEs = 0.14) and SE (PIPSE = 0.14) subsamples showed the highest perception of no-risk compared to the other subsample (PIPSBO = 0.13). Lastly, the SBO subsample showed the highest response indicating a lack of awareness of risks (PIPSBO = 0.02) compared to the other

subsamples (PIPMSMEs = 0.01; PIP SE = 0.01). As such, results suggest that MSMEs have varied perceptions regarding who will be most affected by CC. However, the prevalence of responses that prioritize internal stakeholders indicates a trend toward considering CC impacts within the organization’s direct sphere of influence. To assess behavioral patterns among firms, we examined the distribution using a Pearson chi-square (X2) homo- geneity test. The results indicate statistically significant heterogeneity in the samples regarding their risk perception (X2 = 30.41; p = 0.00). This finding suggests that ventures perceive climate risks differently, primarily influenced by their internal characteristics. Given their size, ventures must make strategic choices regarding key business functions (e.g., site location, capital allocation, labor management, and production patterns, among others), which shape their organizational exposure and vulnerability to climate-related pressures. The observed heterogeneity reinforces the importance of evalu- ating risks based on the resources and capabilities available to each venture while also considering potential variations in the physical, ecological, and socioeconomic systems in which they operate [59,60]. Assessing strategic awareness: Climate change management Afterward, we explored strategic awareness regarding CC management. Respondents were asked to describe their knowl- edge of strategies at both the corporate practice and operational process levels aimed at addressing the challenges their

ventures face related to CC. Panel A of Table 4 reveals that most MSMEs demonstrate higher awareness of strategies at the corporate practice level compared to those aimed at operational processes. Specifically, 54.63 percent of the MSMEs identi- fied corporate practice level strategies. Additionally, the SBO subsample showed the highest awareness regarding corporate practices level strategies (63.27 percent), while the MSMEs subsample exhibited the highest awareness at the operational Table 3. Climate Change Risk Perception. Risk Perception Pathways All Sample SE SBO MSMEs Internal 0.54 0.50 0.50 0.59 External 0.32 0.35 0.36 0.25 None will be affected 0.09 0.11 0.09 0.07 No response 0.05 0.03 0.04 0.07 Not know 0.01 0.01 0.02 0.01 Note. SBO = Small Business Owners; SE = Self-Employed; MSMEs = Micro, Small, and Medium-sized Enterprises. https://doi.org/10.1371/journal.pone.0327165.t003