Perceptions of Green Finance Adoption: A Phenomenological Exploration of Small Businesses in Twin Cities of Pakistan

Abstract

This study explores the motivations and perceptions of small businesses in Pakistan about green finance adoption. The 5 research questions are related to the level of familiarity with green finance products, their potential benefits, risk and return profiles, motivational and demotivational factors for green finance products adoption, and the potential role of government and financial institutions in supporting green finance through its policies. Interviews with small businessmen have been conducted. Through thematic analysis, this research has identified the factors that influence the decision-making of small businesses, including motivations, challenges, risk perception, knowledge and awareness, and government support. The findings of this research reveal a limited understanding of small businessmen regarding the adoption and benefits of green finance options, as well as concerns about financial risks and limited resources. However, small businesses recognize the long-term benefits of green investments. This research highlights that small businesses in Pakistan will be encouraged to adopt green finance through increasing the level of awareness, government support, and financial incentives.