All countries, regardless of their stage of development, have a role to play in the universal goal of transitioning to a low carbon economy. Ensuring that the private sector adjusts and re-engineers business operations and production modes, while at the same time ensuring that businesses can seize the opportunities linked to the process of transition, is a major challenge. However, the ways in which some entrepreneurs are innovating today in the emerging green market-place offer illuminating suggestions for the design of policies and strategies which will support an inclusive transition to low carbon growth.

This discussion paper provides insights into how small and medium enterprises (SMEs) in India are making the green transition today while simultaneously addressing the social implications of their business activities. It examines the approaches of entrepreneurs in developing the skills necessary for themselves and their employees to achieve green innovation that fosters inclusive growth. The innovative approaches used by these Indian companies to adjust their business models, which in certain cases also generate intentional benefits for the communities where they operate, offer unique, field-based knowledge that can inspire SMEs and agencies in other parts of the world.