Enigin Update - SMEs miss £5.7 Billion Growth from Sustainability Benefits
BRITISH bank Lloyds TSB Commercial claim that SMEs will miss out on a potential £5.7 billion of economic growth over the next three years if they fail to address sustainability.
The bank, which questioned over 1,500 British businesses with a turnover of less than £15 million, discovered the majority of small firms (91 percent) have taken some steps towards becoming more environmentally sustainable. And, almost a third (30 percent) of small and medium-sized enterprises (SMEs) have already seen their business grow by an average of 13.25 per cent over a three year period solely as a result of these initiatives.
However, the research showed that those SMEs that haven’t embraced the sustainability agenda (nine percent) could have contributed £5.7 billion of economic growth had they taken steps to become more environmentally responsible.
John Maltby, managing director, Lloyds TSB Commercial, said: "It’s no secret that smaller, private sector firms will be one of the main drivers of the economic recovery this year. However, many businesses may not have realised the wealth of opportunities open to them by becoming a more sustainable business.
"As well as reducing overheads and operating costs, becoming more sustainable will give many firms a competitive edge, enable them to pitch for contracts with strict environmental criteria and enhance their reputation. It may also mean they can target new markets and consumers, or develop new products and services.
"It’s fantastic to see most firms have taken some steps but it is a worry that some businesses have shunned the idea altogether. As the economy begins to recover, those SMEs that do not assess their environmental policies and the opportunities in the green marketplace could miss out on their slice of billions of pounds of growth."
Out of the 91 percent of small businesses that have taken some steps towards becoming more sustainable, most have implemented new company policies (73 percent). The second most popular step (68 percent) has been to improve energy efficiency by reviewing energy use and just over half (51 percent) of firms questioned have provided employee training on the subject of sustainability.
A further 46 percent have consulted other organisations for advice and guidance on the matter. Over a third (36 percent) have collaborated with other businesses and 32 percent have developed new products or services aimed at the sustainability sector.
Whilst 30 percent of SMEs had seen growth has a direct result of becoming more sustainable, improved employee engagement (37 percent) and the retention of current contracts and clients (33 percent) were also key benefits.
When asked about why they had decided to take steps towards becoming more sustainable, most firms (80 percent) said it was because they felt it was an important issue. Other reasons were to reduce costs (74 percent), to meet current or new legislation (68 percent) and to improve the reputation of the company (68 percent).
The research showed that many small firms are still unclear about the risks and opportunities sustainability can create and how it will affect their own businesses.
When questioned about the potential risks associated with not becoming more environmentally responsible - such as higher operational costs, incurring extra fees and taxes, falling foul of legislation, falling behind competitors and losing existing clients and contracts - there was a mixed response.
Almost half (45 percent) of SMEs are worried that there would be risks to their business if they didn’t take measures to become more sustainable, whilst a similar number (52 percent) believe there wouldn’t be any risks.
Businesses were also evenly split when asked about the opportunities created, such as the possibility to enhance their reputation, keep up with or stay ahead of competitors, reduce costs and overheads, pitch for contracts that require sustainable policies, retain current clients and contracts, target new markets and improve employee engagement.
Enigin Distributors help small and medium size enterprisesto become, or improve, their energy efficiency and reduce their greenhouse gas emissions through utilising enerfy efficiency solutions from Enigin. Enigin plc's technology and software not only improves a company's sustainability profile but also reduces costs considerably.
Picture of The old Postley Works © Copyright Richard Sanders and licensed for reuse under this Creative Commons Licence.
(Source Green Wise Business)
