Green Architecture as a Driver of Sustainable Development in Small and Medium Enterprises (SMEs): Insights from Bali, Indonesia

Abstract

This study examines the implementation of green architecture in Small and Medium Enterprises (SMEs) 
in Bali and its role in promoting sustainable development. SMEs contribute significantly to the local economy and 
increasingly adopt eco-friendly practices to reduce their ecological footprint. Using a mixed-method approach, this 
study combines qualitative interviews with SME owners who have applied green architecture principles, such as 
energy-efficient design and sustainable materials, with quantitative data collected from 50 SMEs through structured 
surveys. The findings reveal that 70% of SMEs use environmentally friendly local materials, resulting in a 20-30% 
reduction in energy consumption through natural lighting and ventilation strategies. In addition, 60% of SMEs use an 
independent waste management system, thereby reducing waste disposal by up to 40%. The study emphasizes that 
green architecture reduces environmental impact and improves operational efficiency and market competitiveness, 
leading to potential economic benefits. These results show that integrating sustainable architectural practices in SMEs 
can significantly support ecological sustainability while offering financial benefits. This research fills a gap in the 
existing literature by providing a model for adopting green architecture in the SME sector, especially in a tourist
driven economy like Bali. It offers valuable insights for policymakers and business owners looking to drive sustainable 
development. Keywords: green architecture, SMEs, sustainable development, energy efficiency, Bali