Despite the vast majority of small businesses saying they are focussed on addressing green issues, around 90 per cent of business owners say a combination of lack of knowledge, support from the Government and cashflow issues are barriers preventing them from doing more on sustainability.
A new report from Novuna Business Finance outlines UK small businesses’ approach to sustainability and carbon reduction and the challenges they face in becoming green.
Willingness from small businesses
The research found that 85 per cent were focused on becoming greener as a business with two thirds saying that environmental concerns had become more important than they were a year ago. Additionally, three in five small business leaders had major frustrations with climate change inactivity within their sector and broader community and 27% said that Government and big businesses should be leading the change by example.
The sustainability knowledge gap revealed
Nine in ten small businesses said they could be doing more on sustainability with a range of factors holding them back: Nationally, 17% of small businesses cited a lack of understanding on what sustainability entailed, 14% said they didn’t know how to measure its business impact – and 12% said they didn’t know where to turn for trusted advice on the subject. Linked to these two factors, 15% of business leaders said their small business lacked a designated Sustainability lead to coordinate a programme of activity – and, perhaps a consequence of this, 9% reported disinterest on sustainability issues from their staff members. Alarmingly, almost one in 10 respondents thought it was too early to invest in a sustainability programme – despite recent alarm bells ringing loudly on the climate emergency.
Financial considerations: Investment and business impact
Jo Morris, Head of Insight at Novuna Business Finance commented: “The climate crisis requires action from everyone, in all fields of life and business. The conversation around greenwashing begs the question as to how much enterprises of all sizes really know about the issues and consequently how best to handle them. It is becoming clear from our new research that there are a range of barriers that are holding enterprises back, particularly centred around knowledge and how to implement sustainability. Some enterprises don’t know how to measure the impact of being sustainable, others can’t see how it can make real business sense – and there is confusion on who to turn to for good advice. What really stands out though, is the evident willingness to act from members of the small business community. Encouraging and sustaining this momentum is key, and this is done by giving people the means to achieve the goal that we all have.