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The goal of the study is to ascertain how Environmental, Social, and Governance (ESG) practices affect the financial performance, investment choices, and sustainability of MSMEs in Cuttack City. ESG has emerged as a strategic tool that may influence both long-term sustainability and company success as stakeholders continue to place greater emphasis on running sustainable firms. The study used a mixed-methods approach, combining qualitative information from semi-structured interviews with quantitative data from a structured survey of MSME owners and managers. In order to assess the relationship between the degrees of ESG implementation and the key performance indicators of a company's profitability, investment potential, and operational resilience, statistical analysis—which includes regression and correlation techniques—is used. The results demonstrate that MSMEs who actively incorporate ESG principles into their operations exhibit improved financial performance, increased investor certainty, and improved adaptability to market and environmental issues. However, the factors—such as a lack of resources and ESG-related skills, as well as unclear regulations—present obstacles to a wider adoption. In order to encourage ESG adaptation in MSMEs through the development of urban economic sustainability, capacity-building interventions, strategically oriented policy, and stakeholder collaboration are required.
Keywords:
ESG practices, financial performance, investment decisions, sustainability, MSMEs, Cuttack City, sustainable business
Cite Article:
"IMPACT OF ESG PRACTICES ON FINANCIAL PERFORMANCE, INVESTMENT DECISIONS AND SUSTAINABILITY OF MSMES EVIDENCE FROM CUTTACK CITY, ODISHA", International Journal for Research Trends and Innovation (www.ijrti.org), ISSN:2456-3315, Vol.11, Issue 2, page no.b338-b347, February-2026, Available :http://www.ijrti.org/papers/IJRTI2602142.pdf
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2456-3315 | IMPACT FACTOR: 8.14 Calculated By Google Scholar| ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.14 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator