Paradox of Sustainable Growth: The Interplay Between Small and Medium Enterprises and Non‐governmental Organizations and Government Helix

ABSTRACT Small and medium enterprises (SMEs) are the effective economic engines of most developing countries. Unfortunately, due to resource constraints, the failure rate of SMEs is relatively high, prompting scholars and practitioners to explore potential solutions. Here, the collaboration between SMEs and non‐government organizations (NGOs), supported and guided by governments, can play a strategic role in overcoming resource constraints and promoting sustainable growth. Islamic NGOs can provide Sharia‐based financial support, capacity building, and mentorship to SMEs, especially those owned by Muslim entrepreneurs. Therefore, the goal of this study is to establish a conceptual framework for strategic collaboration between SMEs, conventional NGOs, Islamic NGOs, and governments, with the aim of promoting sustainable growth. A rigorous PICO‐based SLR identified 112 relevant articles. In‐depth analysis using thematic and content approaches, alongside the ADO framework, ensured a robust foundation for the proposed conceptual model. The implementation of methodical procedures further enhanced the rigor of the analysis, ensuring both reliability and validity. The study has devised a strategic collaboration paradigm for the sustainable growth of SMEs, considering the functions of both conventional and Islamic NGOs. This paradigm encompasses innovative financial options, technology transfer, and innovation, value sharing in the supply chain, capacity building and skill development, as well as stakeholder engagement. The results also highlight how important it is for government regulations and policies to be effective from a Helix viewpoint in order to guarantee the long‐term success of SMEs. Additionally, the obtained model has the potential to advance SDG 13 (climate action) and SDG 17 (partnerships for the goals) by fostering cross‐sector collaborations among SMEs and other important stakeholders.