Eighty per cent of business owners want to reduce emissions, but two-thirds need more support to do so – with finance a major barrier.
The UK’s 5.5m small businesses overwhelmingly need more help to reduce their environmental impact.
Research has found a lack of leadership and financial constraints are holding back this major part of the economy – estimated to represent half of the UK’s business emissions1 – from pursuing green growth.
Four in five (80%) business owners want to improve their sustainability according to the study from Small Business Britain and BT, with almost one in four small businesses viewing ‘going green’ as a growth opportunity.
Yet the survey of over 2000 business owners – analysed by Oxford Brookes Business School – found almost two thirds (64%) want greater support to make sustainability improvements and two-fifths (41%) feel lack of finance is a substantial barrier to action.
While over three quarters (77%) of small business owners say they have already taken steps to make sustainable changes, only 20% feel their action is significant, indicating a gap between the level of change needed and current progress.
The ‘Small Business, Green Growth’ report is calling for greater leadership across government and the private sector – particularly around providing access to finance – 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 – are clear factors behind 34% of business owners feeling restricted to reduce emissions, with 65% wanting more grants to be made available.
Despite this, 25% of small businesses recognise the financial benefits and business opportunity of going green – a trend seen particularly among younger start-ups. With customer and supply chain demands growing, as sustainability increasingly becomes seen as a critical issue, small businesses are also being driven by their own personal values.
Wilmer Carcamo, co-founder, 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. 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.”
“There are mounting concerns about climate change and the transition businesses and society need to make in the coming years,” said Michelle Ovens CBE, Founder of Small Business Britain.
“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.”
