A lack of leadership and financial constraints are holding back small businesses in their attempts to go green, new research has revealed.
Four in five business owners want to improve their sustainability, according to a major new study from Small Business Britain and BT, with almost one in four small businesses viewing ‘going green’ as a growth opportunity.
But the nation’s 5.5m small businesses are asking for more help to reduce their environmental impact, with almost two thirds (64%) wanting greater support to make sustainability improvements and two fifths (41%) feeling lack of finance is a substantial barrier to action.
The survey of over 2000 business owners – analysed by Oxford Brookes Business School – found that three quarters (77%) of small business owners say they have already taken steps to make sustainable changes but only 20% feel their action is significant.
Wilmer Carcamo, the co-founder of Caribe Coffee Co., said: "As a small business, we prioritise sustainability as our customers expect that from us, and it's the right thing to do.
Caribe Coffee are examples of small businesses that have made solid progress on their sustainability journey, making changes like switching to compostable packaging and donating coffee sacks to a reuse project (Image: Small Business Britain)
“We use compostable packaging for all our coffee bags, donate our coffee sacks to a reuse and recycle community project, and would love to invest in an electric van and go further - but finances are a barrier.
"We see the desire to do more in the small business community but people are limited and need more support - while sustainable practices can unlock cost savings, this needs to be more affordable."
The ‘Small Business, Green Growth’ report is calling for greater leadership across government and the private sector to help small businesses and the wider UK economy realise the full potential of sustainable growth and achieve Net Zero by 2050.
Recent economic pressures, from the cost-of-living crisis to recession, appear clear factors behind 34% of business owners feeling restricted to reduce emissions, with 65% wanting more grants to be made available.
Michelle Ovens CBE, Founder of Small Business Britain, said: “There are mounting concerns about climate change and the transition businesses and society need to make in the coming years.
“Our research clearly shows that small business owners overwhelmingly want to go greener – driven by their own ethics as well as growing consumer expectations and supply chain demands.
“However, the path they need to take is not clear at all. We need more leadership and ambition - across society, the private sector and with Government - to engage and educate this vital part of the economy and to find innovative solutions for the major challenges businesses now face, particularly around financing greener growth.”
Small Business Britain and BT have also launched applications for a new free, six-week ‘Sustainability for Small Business’ training programme to empower small businesses across the UK to better understand their environmental impact and embrace more sustainable practices and opportunities for change.
Delivered entirely online, with over 1000 places for small businesses available, it will focus on key sustainability topics such as measurement, accreditation, and financing.
Chris Sims, Managing Director, Small and Medium Business at BT, said: “The commitment to sustainability among small businesses in the UK is growing, but there are challenges that still need addressing.
“BT has already supported more than 1 million small businesses with digital skills support, but we are determined to help even more, which is why we are launching these new initiatives. They are designed to provide enhanced practical support to the UK’s entrepreneurs, so they can cut their CO2 emissions, implement lasting sustainability principles into the core of their businesses, and drive forward the UK’s net zero agenda in a manageable way.”
For more information about the ‘Small Business, Green Growth’ report visit: https://smallbusinessbritain.uk/small-business-green-growth
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