A recent study has shown that one in five small businesses in the UK have had to re-invest all of their profits just to stay afloat this year. The research, which surveyed 500 small and medium-sized enterprises (SMEs), found that the cost of living crisis, energy price hikes, and increased supplier costs have eaten into their margins.
Environment Takes a Back Seat
As a result of these financial pressures, many small businesses have had to put their plans for becoming more sustainable on hold. A staggering 48% of respondents said that going green has become less of a priority. However, 44% of SMEs still think they will be able to focus on sustainability more in the coming year.
The study also revealed that almost half of the small businesses surveyed (48%) believed that eco-conscious businesses are more successful than those that are not. Victoria Bacon from Smart Energy GB, the organization that commissioned the research, said, "Taking steps to reduce your environmental impact often delivers real cost savings too. Even small changes that aren't expensive to implement can make a big difference to a business' bottom line, as well as being good for the planet."
Looking Ahead to a More Sustainable Future
Despite the challenges they face, 43% of the small businesses surveyed now feel in a better position to make their business more sustainable. Some of the strategies they plan to adopt include financing eco-friendly changes by reducing spending in other areas of their business and looking for new revenue streams.
Reducing their carbon footprint and energy bills is a priority for 43% of respondents, while 39% want to do their part to ensure a healthy planet for future generations. Other eco-friendly actions mentioned included switching to more environmentally friendly packaging, buying in bulk to reduce transport costs, investing in smart plugs, and using light sensors.
In the medium term, 14% of those surveyed expressed an interest in purchasing electric vehicles, while 19% wanted to replace old equipment with more energy-efficient technology. Taking control of energy usage and buying local where possible were also top recommendations from small business owners to their younger selves.
Victoria Bacon from Smart Energy GB emphasized the important role that small businesses play in helping the UK meet its net zero targets. She stated, "Smart meters are an integral component of our national infrastructure upgrade to meet these targets, which will enable us all to increasingly use cheaper, cleaner energy."
Did you miss our previous article…
https://hellofaread.com/money/major-bank-to-close-more-branches-as-they-disappear-from-the-high-street/
