Why Sustainable Practices Matter for Small Businesses

Global problems such as greenhouse gas emissions, increasing amounts of waste, and energy consumption reveal that sustainability has become a necessity not only for large enterprises but for businesses of all scales. Having gained a priority position in large-scale enterprises, sustainability is also a significant approach that offers environmental, social, and economic benefits for small businesses.

By adopting sustainable practices, small businesses can not only contribute to the environment and society but also optimize their business processes to reduce costs and increase their brand value in the long term.

Why Should Small Businesses Take Steps Towards Sustainability?

Although profitability is always at the forefront for small businesses, focusing solely on product and service sales like in past years is no longer sufficient to increase profitability. Businesses need to develop strategies in different areas as well. One of these areas is sustainability. We can list the benefits of sustainability for small businesses as follows:

Efficiency

The adoption of sustainability practices by small businesses makes a significant contribution in terms of operational efficiency. Realizing this, many companies have started turning towards green investments.

The report published by PwC in 2021 shows that the number of green investments in the last decade has increased 200 times compared to previous years. The same report also includes data indicating that companies adopting practices such as environmentally conscious production and management have an increased chance of achieving higher valuations.

Businesses can achieve this by making some changes in all stages from production to sales. For example, you can achieve fuel savings by adopting smart software for product deliveries. In addition, thanks to smart software, you can obtain advantages such as fast and error-free delivery, thereby increasing both customer and employee satisfaction. By offering sustainable products and services, you can make your brand attractive to eco-friendly customers.

Less Waste

According to the 2022 TurkStat statistics, the annual amount of hazardous waste is 29,380,898 tons. The most significant share here belongs to mining operations, followed by manufacturing industry workplaces. Thanks to the use of fewer raw materials and more recycled materials in the production process, less waste is produced. Thanks to environmentally conscious production, you can also save on raw material and waste storage costs.

Economic Empowerment

Sustainable practices also have the advantage of providing economic flexibility to firms in the long run. You can achieve significant savings by adopting sustainable strategies on issues such as waste policy, production, recycling, and energy consumption. You can then direct the savings you achieve into new investments or different opportunities.

For example, by using energy-saving lighting equipment in your company, it is possible to reduce your expenditures on electricity bills. You can direct the savings achieved through such simple but effective methods to areas such as R&D, marketing, and staff training.

Forecasts for the increase in sustainable product manufacturing show that there will be a growth reaching up to 3.5 trillion dollars by 2025. Especially in recent years, the tendency of customers to prefer sustainable products may make companies more willing to evaluate this potential. Companies that can respond to customer demand can significantly increase their customer potential in the coming period.

Social Responsibility

Even though small businesses' participation in social responsibility projects is evaluated in terms of providing social benefit, it can be said that companies also obtain certain benefits through social responsibility projects.

Taking part in social responsibility projects is an important step for small businesses to grow and institutionalize. As a business, you can support social responsibility projects such as donating to charities and offering products and services for free to disadvantaged groups.

The results of a study conducted on social responsibility and customer behavior are important in terms of showing why companies should pay attention to this issue. According to a study conducted in the USA, the rate of customers preferring companies that are more sensitive to social and environmental issues is 88%. The rate of customers stating that they would buy socially beneficial and environmentally friendly products is at a level that should be taken into account, at 87%.

Customer Loyalty

Sustainability can bring a new dimension to your relationships with your customers. Studies show that General Z in particular is more sensitive to the environment and prioritizes sustainability in their purchasing choices. Therefore, if you are a business that values sustainable practices, you can become the choice of Gen Z.

B2B small businesses, on the other hand, can sign different collaborations by aligning with the sustainability policies of large companies.

The study conducted by Accenture shows that the number of customers buying eco-friendly products has increased more compared to five years ago. Companies that produce products and services that do not meet this demand may face the danger of losing their market share.

Corporate Image

You can make use of sustainability practices to strengthen your corporate image. You can allocate a portion of the profits you earn during the year to investments you will make for the preservation of the environment. You can strengthen your corporate image by taking an active role in social responsibility projects such as the education of girls, preservation of nature, or prevention of violence against women.

Strong Competition

You can benefit from various sustainability practices to stand out by leaving your competitors behind. It is possible to mention many exemplary practices that increase competitiveness. Eco-friendly packaging and recycled materials can strengthen your hand in competition much more than you think. In addition, practices that eliminate transport emissions, such as collaborating with local producers, are also advantageous in terms of competition.

Benefiting from State Subsidies

Many governments worldwide aim to make companies invest more in this area by offering sustainability incentives. For example, a Carbon Emission call was made by KOSGEB in 2021, and its upper limit is 2 million TL. 21 businesses obtained the right to benefit from this call, utilizing financial support in the projects they developed for the reduction of carbon emissions. One of the state incentives regarding sustainability was implemented by the Ministry of Industry and Technology.

This practice, called the Green Transition Support Program, was prepared within the scope of the 2053 net zero emission target, the Green Deal Action Plan, the Medium-Term Program, and the 12th Development Plan objectives. Under this program, it is planned to offer privileges such as VAT exemption, customs duty exemption, tax-premium reduction, and interest support.

The European Union also supports sustainability through various projects. Within the scope of the European Union (EU) Climate Dialogues (EUCD) Project, practices such as supporting sustainable agriculture are in place.

Compliance with Laws

In many countries, legal regulations are made for environmentally friendly production and service delivery. Thanks to this, severe sanctions are applied to companies that harm the environment and use natural resources uncontrollably. You can comply with legal regulations by reducing carbon emissions with renewable energy. Even if there is no legal obligation for these regulations, you can voluntarily implement sustainable practices to comply with future legal regulations or to set an example for other businesses.

Your Supporter to Strengthen Your Business with Sustainable Practices: QuickCarbon!

You can also benefit from our services to implement sustainable practices in your small business. You can contact us immediately to get information about our consultancy services on different topics such as corporate carbon footprint, water footprint, and carbon border adjustment mechanism, and to determine your sustainability strategies.