Start-ups and SMEs have a unique edge when it comes to reaching customers who care about ethical business, writes Emma Jones
Mention the word ‘sustainability’ to a small business and it will conjure up a couple of reactions. The word ‘sustainable’ has, of course, become common parlance for businesses that are watching their environmental footprint.
In its widest sense, however, building a sustainable business means building a strong business that has resilient revenue streams, a team with a shared vision and, dare I say it, scope to survive and thrive should its founder depart.
These days, as sustainability becomes increasingly important to consumers concerned about climate change, start-ups that are kind to the planet are more likely to succeed over the longer term.
In the UK, we are seeing many young people setting up ventures to right a wrong or deliver a product or service in a more sustainable way. These ethical entrepreneurs are a bright light for the future.
For established small businesses, becoming more sustainable may be a slightly more ‘forced’ practice whereby larger clients might be demanding change in their supply chain, for example.
As part of a pledge to cut its carbon footprint by a third by 2025, M&S last year announced plans to ‘grow carbon literacy’ among its buying, sourcing and operational partners, and to select 100 of these partners as Carbon Champions to help drive its net zero delivery.
Elsewhere, the environmental charity Hubbub partnered with Starbucks to launch a £1 million competition providing grants of up to £300,000 for alternatives to single-use packaging in the food and drink industry.
The UK Government has also launched an online climate hub for SMEs with a database of practical tools and resources to help them develop a climate strategy, curb emissions, and build business resilience.
At the end of the day, there is no more compelling reason for a small business to take action than in response the needs of their clients.
Being a strong and sustainable business is good for the planet, and good for business, with growing evidence showing that more consumers are seeking out purpose-led and sustainable brands.
This trend suits small businesses well because it is often easier for them to be more human in how they approach their customers and their market.
Entrepreneurial businesses can actively share the story and authenticity of why their founder started the business — Who are they? What inspired them to start their own venture? What do they care about? What do they want to achieve?
This personal approach, and the authenticity it imparts, can really help to draw in customers who want to buy into something that, not only delivers, but also has meaning.
Emma Jones is the founder of Enterprise Nation