Small businesses struggle with sustainability

The development of “green” business practices may be put on the back burner as small businesses struggle to stay afloat financially.

A survey released this week has found the cost of sustainability is one of the biggest barriers for businesses trying to change their practices.

The Ideas Shop Sustainable Business Practices Survey is the first of its kind to be conducted among small to medium sized businesses (SMEs) in New Zealand.

Ideas Shop partner Dan Ormond says the state of the economy is the “number one” concern for those interviewed.

“Struggling businesses are most interested in staying afloat,” he says. “But a sustainable business is a profitable business.”

Many of the 400 SMEs surveyed said they would like to better integrate environmental measures into their companies, but did not have the time and money to do so.

Ormond says it is important for small businesses to understand that many environmentally sustainable practices can actually save money.

But he acknowledges that there are significant barriers, the biggest being time, information and cost.

Only a quarter of the surveyed businesses made a formal commitment to operating sustainably.

But some Auckland businesses are making their mark.

Paradigm Design is a Ponsonby-based company that has attempted to employ green practices since its establishment in 1989.

They were the winners of the SMEs category of last year’s Sustainable Business Network Awards.

Director John Ringer believes environmentalism is becoming more popular.

“One business can have an influence way beyond their industry,” he says.

“It’s about knowledge. Once people understand, it will catch on.”

But he does recognise the problem of costs.

“The real issue is if it costs more, it can be a problem with some clients,” he says.

The report did present some promising statistics, however, with 95 per cent of SMEs performing at least one of seven environmental measures.

The most common sustainable practices were conserving power, sorting waste and recycling paper.