The Right Approach Towards Sustainability for the Small Enterprise

Managing a small enterprise is not a job for everyone. With high costs of growth, cash flow issues, hiring the correct people, and designing the right product or service; small businesses are tough and exciting places to work at. Because of their fast dynamic, sustainability can sometimes seem like a faraway concept to them. All the same, establishing a sustainability strategy from the start is beneficial. When done right, sustainability will bring not only a positive impact on society and the environment but also an economic return for enterprises with actions that do not necessarily need to represent extraordinary additional costs. For small businesses, some strategic steps and tactics are needed to approach sustainability, in a manner that does not overwhelm or distract from main business objectives.

Leadership is key to sparking sustainability actions. First, decision-makers need to understand the benefits of incorporating sustainability into the business strategy. Without this, all else crumbles as leadership is the enabler for any action in companies. On top of that, a protagonist will be the person responsible for sustainability engagement across all areas. This designation does not need to be a new role, it can be an added responsibility to a strategic position in the company. Sustainability is not a one-size-fits-all, the person that will take on this challenge will be determined depending on the nature of the business. For instance, a people-intensive business could designate the sustainability responsibility to someone already managing human resources, or if it is a manufacturing company it could be given to someone in operations.

The big question arises after the importance of sustainability is acknowledged and the responsibility is placed in a particular area. How does sustainability look for the small enterprise and what actions should be taken? Sustainability will look different from business to business and the sustainability strategy needs to be aligned with the business overall strategy. While doing this, it is helpful to envision how the business can positively impact the environment and society when it outgrows its small enterprise stage. This must be taken as an across-area creative process that involves thorough research. Looking for industry benchmarks, identifying what other companies in the same sector are doing towards sustainability, who their stakeholders are, how they relate to their supply chain, and what benefits they have for their employees; is a good starting point and base to start the ideation process for a sustainability strategy. This strategy must have a long-term vision and be accompanied by time-bound sustainability actions. Using industry sustainability-specific research can also determine which actions are non-negotiable for the sector, that is, they have to be carried out no matter what, and which ones can be more innovative and creative. It is imperative to understand that sustainability actions should not be isolated or inconsistent from the strategy, as they hold the potential to distract from the main business objective and put resources into senseless actions.

With this, a sustainability strategy that will provide guidance and direction to the sustainability leader is emplaced, making it easier to coordinate with all areas and make progress in the implementation. It is most efficient if the sustainability leader not only works together transversally with all areas but also reports the progress to the head of the organization. This creates a cooperative environment for the small enterprise to use its resources in a well-planned manner.

Sustainability is not just for large companies that seem to have everything figured out and have the resources to solve any problem that arises. A well-designed sustainability strategy, specific to the company’s mission, business objectives, industry, location, and size, can come a long way. It is a matter of strategic thinking, engaging with leadership, researching, and being creative.