Building Resilience of SMEs through Strategic Sustainability

Supporting the green transition and long-term resilience of SMEs through science-based sustainability strategy
Sustainability strategy
Executive leadership programmes

Project Overview

This case is part of the Finnish national project Resilience, Green Transition and Digitalisation of SMEs, a collaborative initiative involving 22 Universities of Applied Sciences across Finland. The project aimed to strengthen the capacity of micro-, small-, and medium-sized enterprises (SMEs) to respond to unforeseen disruptions and rapidly changing business conditions.

The initiative was delivered through short-term, practical learning formats - such as micro-studies, workshops, events, and digital learning materials - designed to build resilience, accelerate the green transition, and enhance strategic adaptability. The project was funded by the European Social Fund REACT-EU, as part of the EU’s response to the COVID-19 pandemic, and implemented between December 2022 and November 2023.

Within this broader programme, representatives from the Sustainability Collaborative worked with Arcada University of Applied Sciences to develop learning resources for strategic sustainability capability using the Framework for Strategic Sustainable Development (FSSD).

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The Challenge

Many SMEs recognise the importance of sustainability and resilience but struggle to translate these ambitions into clear strategies - particularly in times of crisis and uncertainty.

Common challenges included:

  • Limited internal capacity to work strategically with sustainability
  • Fragmented or reactive sustainability initiatives
  • Uncertainty about how sustainability supports long-term resilience
  • Difficulty prioritising actions amid rapid external change
  • A lack of practical, accessible tools tailored to SME realities

The COVID-19 pandemic highlighted these gaps, reinforcing the need for approaches that support both short-term adaptability and long-term strategic direction.

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Our Approach

Key members of the Sustainability Collaborative supported Arcada University of Applied Sciences to address these challenges by developing accessible, science-based learning resources tailored to SMEs.

Learning resources were based on the Framework for Strategic Sustainable Development (FSSD) as a core methodology. The FSSD helps organisations:

  • Understand sustainability through a science-based definition, clarifying what long-term success looks like
  • Use backcasting from sustainability principles (the ABCD process) to prioritise actions, guide innovation, and align short-term decisions with long-term goals

This approach is used to reframe sustainability as a strategic asset - supporting resilience, innovation, and informed decision-making rather than isolated or compliance-driven actions.

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Delivery

Support to SMEs was delivered through a combination of training, tools, and learning resources designed for immediate and practical use.

Key elements included:

  • Micro-studies and workshops on strategic sustainability, systems thinking, and resilience
  • Practical handbooks and guides explaining how to apply the FSSD in a business context
  • Guided exercises for baseline assessment, visioning, gap analysis, and roadmap development
  • Measurement tools aligned with frameworks such as the Future-Fit Business Benchmark
  • Interactive learning formats enabling SMEs to apply insights directly to their own operations

All materials were designed to remain useful beyond the programme period, enabling continued learning and application.

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Outcome

The project strengthened SMEs’ ability to navigate uncertainty while advancing the green transition.

Key outcomes included:

  • Increased understanding of sustainability as a driver of long-term resilience
  • Clearer strategic direction and sustainability priorities
  • Practical roadmaps tailored to SME contexts
  • Improved internal capability to prioritise actions and investments
  • Greater confidence among leaders to integrate sustainability into everyday decision-making

The learning materials developed through the project remain publicly available, extending impact beyond participating companies and supporting continued capacity building across the SME sector.

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