Research on Investment and Financing Management and Risk Control in the Green Transformation of Small and Medium-Sized Textile Enterprises

Jiang Yuan, ANBALAGAN MARIMUTHU, Lingfeng Cheng

Article
2026 / Volume 9 / Pages 464-477
Received 3 July 2025; Accepted 15 August 2025; Published 2 March 2026
https://doi.org/10.31881/TLR.2026.464

Abstract
The green transformation toward sustainable development poses significant challenges for the textile industry, particularly for Small and Medium-Sized Textile Enterprises (SMTEs) involved in resource-intensive chemical operations such as the dyeing and finishing of cotton yarn and fabrics. These firms often face financing gaps for upgrading textile mills, machinery, and equipment, which is critical for processing both natural and synthetic fibers. This study proposes an integrated decision-support framework, merging Multi-Criteria Decision Analysis (MCDA) and Monte Carlo simulation, to evaluate and prioritize green investments in textile processing technology. An evaluation of three retrofit plans identified that a comprehensive switch to waterless digital-printing equipment—a key advancement in textile technology—is the optimal solution for processing fiber products with minimal water and organic compound usage. A hybrid financing structure was optimized to fund the acquisition of this new equipment, and a digital Green Investment and Risk Coordination System (GIRCS) was designed for real-time risk tracking. The findings offer a replicable methodological blueprint for investment appraisal in the textile industry, aiding firms across the supply chain—from weaving to finishing—and contributing a novel approach at the intersection of materials science and engineering management.

Keywords
textile industry, sustainable development, green finance, textile finishing, Multi-Criteria Decision Analysis