Insights from the small business community

How can councils help SMEs go green?

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Posted By:

Roger McKerlie

Founder, Environmental Business Network

Helping local businesses to decarbonise should be a key aim for any local authority. The impact of doing so could be enormous – research has found that half the UK’s carbon reduction ambition can be delivered by the country’s small and medium-sized enterprises (SMEs). Many are hungry to take action – no surprise, when the same research found that decarbonisation was a £160bn-plus revenue opportunity for the SME sector

But even the keenest small firms face huge barriers to change. Support from their council- particularly sharing knowledge, connections and opportunities – can be vital in smashing through these barriers. And when that happens, residents benefit from a stronger local economy as well as lower emissions.

I run the Environmental Business Network, a movement of more than 1,700 businesses. All our members are connected by their awareness that without action we face a very different environmental, and therefore economic, future. We inspire and connect companies around the UK who want to embrace environmental sustainability and go further in removing their Greenhouse Gas emissions. How can councils work in partnership with our members, and others like them?

Give SMEs support beyond grants

Many SMEs are eager for grants and financial support. But even if authorities can’t support this, offering advice – and bringing businesses and the wider community together – can spark action too. A great example is the Camden Climate Alliance in North London. Its networking events help local businesses get inspiration and seize opportunities to take climate action, in partnership with their communities.

Council events and campaigns can also create opportunities for SMEs. Brighton and Hove City Council has been working to replace some of its own cars and vans with electric cargo bikes. Allied to this effort was its eCargo Bike Accelerator Programme – which offered advice, rider training, publicity and small subsidies to local businesses making the same switch.

More examples of great support come from South Lakeland District Council (now part of the new Westmorland and Furness Council). These include subsidised places on its purposeful start-up programme, and subsidising environmental advice for existing businesses.

You can also harness the power of sustainable procurement. Greening local authority supply chains means buying more locally, and this is an opportunity to help businesses take action – by setting procurement criteria that reward sustainability.

There’s also value in creating strategies for boosting green skills locally. SMEs will struggle to decarbonise without a trained workforce that can make that transition happen.

Build confidence – and work fast

Many SMEs won’t be aware of the opportunities their authority can bring them: whether that’s the chance to partner on green projects, or insights into new sustainability regulations. So councils should be could be more pro-active in highlighting these, and show they’re excited about working with local businesses to achieve shared goals. A big part of building confidence is being ready to work fast. SMEs need to be quick and agile, and look for partners who can be the same, in actions and decision making.

From lowering emissions to creating good green jobs, there are many reasons for councils to partner with SMEs on sustainability. Doing so needn’t be difficult or expensive – but can bring huge rewards.

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