SUSTAINABILITY ACCOUNTING PRACTICES IN MSMES: CHALLENGES AND OPPORTUNITIES – A STUDY OF RAIGAD DISTRICT, MAHARASHTRA

Sustainability has become an essential component of modern business management as organizations 
increasingly focus on environmental, social, and governance (ESG) performance. Sustainability accounting 
enables businesses to measure and report environmental and social impacts alongside financial performance. 
While large corporations have begun implementing sustainability accounting practices through structured 
reporting frameworks, Micro, Small, and Medium Enterprises (MSMEs) often lag behind due to financial 
constraints, lack of awareness, and limited technical expertise. 
MSMEs play a crucial role in economic development, employment generation, and industrial growth in 
developing economies such as India. In regions like Raigad District in Maharashtra, the rapid expansion of 
industrial and small-scale enterprises has increased the importance of sustainable business practices. 
Sustainability accounting can assist MSMEs in monitoring environmental costs, improving resource efficiency, 
and enhancing transparency in business operations. 
This study examines sustainability accounting practices among MSMEs with special reference to Raigad 
District, Maharashtra. The research identifies key challenges faced by MSMEs in adopting sustainability 
accounting practices and explores opportunities that can support sustainable financial management. The study 
adopts a descriptive research design using secondary data sources including academic journals, government 
reports, and sustainability frameworks. 
The findings suggest that sustainability accounting adoption among MSMEs remains limited; however, 
technological advancements, digital accounting systems, and supportive government policies can facilitate its 
implementation. The study concludes that promoting sustainability accounting among MSMEs can improve 
financial transparency, enhance operational efficiency, and contribute to long-term sustainable economic 
development.