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 22 / 26 revenue streams linked to carbon credits and emissions reductions. Even though many MSMEs perceive environmental value creation as a potential driver of growth, integrating CC strategies into core business functions remains a challenge. To address this, businesses should conduct environmental risk assessments to evaluate their exposure to climate-related disruptions. By incorporating climate considerations into site location decisions, capital allocation, labor management, and supply chain planning, MSMEs could proactively develop resilience against future sustainability challenges. As we have shown, many MSMEs lack the internal expertise needed for effective environmental management. To over- come this challenge, industry associations and chambers of commerce should facilitate collective climate initiatives, such as cooperative sustainability programs, shared infrastructure for green technologies, and joint procurement of renewable energy solutions. Establishing knowledge-sharing networks among MSMEs could help smaller firms access sustainability resources at reduced costs while collectively enhancing their market competitiveness. Additionally, MSMEs should take advantage of available government programs, grants, and advisory services aimed at supporting sustainability transitions. By staying informed about regulatory changes and actively participating in policy discussions, businesses could better

anticipate and adapt to evolving environmental requirements. Finally, forming partnerships with larger firms and research institutions could provide MSMEs with access to technical expertise, funding opportunities, and innovative sustainability solutions. Overall, by strengthening these practical support mechanisms, MSMEs could move beyond general climate awareness and adopt tangible, sector-specific strategies that contribute to long-term environmental sustainability and business resilience. Limitations This project is not without limitations. A primary concern is the potential for response bias, as the data relies on self- reported perceptions and strategies from MSME C-level executives. This may lead to an overestimation or underestima- tion of their awareness and engagement with CC issues. Future research could incorporate qualitative approaches to explore the micro-foundations of CC-related decision-making. Complementary research designs may also help identify additional factors influencing MSMEs’ awareness and engagement with sustainability initiatives. Additionally, the study’s reliance on survey methods may not fully capture the nuanced understanding and complex mechanisms involved in how MSMEs address climate change. This approach could overlook the significant influence of external factors, such as gov- ernment policies, market dynamics, and technological advancements, which are crucial in shaping MSMEs’ environmental awareness, behaviors, and strategies. Future research should adopt a more comprehensive approach that examines

both internal and external drivers, offering deeper insights into how these factors collectively shape MSMEs’ responses to climate change. Second, although the sample is representative of MSMEs in Colombia—a country within Latin America, a region often regarded as fertile ground for theory building and testing [47]—our findings are limited to contexts that share similar institutional environments and experience varying degrees of CC impact. This limitation affects the generalizability of the results, highlighting the need for further research in diverse settings to empirically validate our conclusions. Third, the study’s cross-sectional design presents another limitation, as it captures MSMEs’ perceptions and strategies at a single point in time. Consequently, this approach does not account for temporal changes or the evolution of attitudes and CC-related practices. To address this, future research should incorporate longitudinal studies to examine how MSMEs’ awareness and strategies develop over time. Fourth, this study does not fully capture the complexity and diversity of CC impacts and responses. While it focuses on key themes such as awareness, risk perceptions, and strategic planning, other critical aspects—such as supply chain vul- nerabilities, stakeholder engagement, and the socio-economic implications of CC strategies—may have been overlooked. Future research should explore these dimensions to provide a more comprehensive understanding of MSMEs’ engage-

ment with CC-related challenges. Fifth, while this study aimed to identify general patterns within the business community regarding climate change awareness and related strategies, the use of anonymized data limited our ability to examine