How SMB's are helping boost economic recovery

The COVID-19 pandemic has shaken up the status quo for many businesses worldwide and thrown many tried, tested and long-standing strategies out of the window. Amid the pandemic, many of us have had time to reflect on what’s important, which has led to a greater appreciation for our planet and a renewed motivation to help heal it in the midst of our recovery.

Our recent survey with YouGov found that eight in ten SMBs feel it’s important for businesses to adopt more sustainable practices to aid economic recovery in Australia following COVID-19. We also found that one in three SMBs also now feel more concerned about climate change and sustainability compared with before COVID-19 struck.

It’s never been more critical for businesses to adopt more sustainable practices such as moving to renewable energy and diverting food waste from landfill. Many small businesses are rising to the challenge and, in doing so, are jumpstarting their own recovery by aligning with the increasing demand for local and sustainable products and services. 

Economic Impact of COVID-19 on Aussie

The COVID-19 coronavirus has had a significant economic impact in Australia, in the order of $160 billion. Particularly hard-hit have been those in the hospitality industry, who have seen consumer demand plummet during the restrictions on free movement.

Now is the perfect time to adopt sustainable practices within your business. Even as many businesses adjust to the new world post-COVID, there is the opportunity to rebuild in a more sustainable way to speed up economic recovery and ensure a more resilient future. This provides great long-term economic security while helping tackle the immediate environmental challenges staring us in the face. 

Why care about sustainability?

COVID has helped us step back and realise just how fragile our planet is. With our usual way of life disrupted while we buckle down and fight the pandemic, we’re seeing that positive large-scale social changes in our behaviour are possible when required. This gives us impetus as we tackle other global challenges, such as our current climate change emergency.

According to our YouGov study, people care more about sustainability now more than ever. So, it’s no surprise that customers are more likely to buy products and services from businesses with strong sustainability credentials. This offers environmentally-conscious businesses a tremendous revenue opportunity.

However, sustainability shouldn’t just be another cynical marketing strategy but a rallying cry that more and more companies, big and small, need to get behind if large scale change is to be effective.

The World Economic Forum explains that ‘going green can help the planet and your profits’ and draws parallels between eco-innovation and increases to a business’ profit margins. The organisation defines eco-innovation as an ‘economic effort that operates with respect for the environment’. Going green can help our planet’s sustainability, while ensuring sustainable business profits at the same time, through practices such as waste reduction and more efficient operations. 

What are SMEs doing for sustainability?

Sustainability applies to every aspect of a business because it matters to all stakeholders including employees, customers, regulators, lenders and suppliers. Everyone is raising their expectations of what businesses should be doing beyond merely making a profit.

Professor Glenn Hoetker, from the University of Melbourne, points out that many employees, particularly those just entering the job market, want to work for a company with a positive approach to sustainability. This affects recruitment and retention. He adds that industries perceived as unsustainable are finding it harder to attract financing and shareholders are also raising their expectations.

“All of these factors mean that sustainability affects revenue, cost and risk – the ultimate drivers of a firm’s performance,” he says.

Local businesses making the right moves

The Sustainable Salon provides high-end salon and barber services for men and women using products without environmentally-toxic chemicals. The owners have introduced a ‘Pay What You Feel’ system on all non-chemical services, which is designed to empower their customers in the choices they make and the impact those choices have.

Wellbeing Island is an eCommerce platform home to three sustainable brands, all of which are made from 100% natural ingredients, with a focus on helping consumers make more sustainable choices.

Other examples include restaurants providing bamboo takeaway utensils, as well as more environmentally responsible packaging, while others are adopting better food waste management plans. An example of this is the implementation of a food digester at Sydney’s The Fiddler premier hotel, which is diverting 3.48 tonnes of food waste from landfill every month.

These are just a few of the many eco-friendly and sustainability-oriented small businesses in Australia that are meeting the growing demand for more environmentally and socially responsible products and services. Here at iugis, we’re happy to see more popping up every day.

Want to improve your sustainability credentials?

Even the smallest of changes can make a difference and are a step in the right direction. There has never been a better time to take action and evaluate your current business practices. Reach out to our team today.

This blog first appeared on the iugis website here.