Thursday 1 June 2023

Cost concerns push green agenda down the priority list for SMEs

Small and medium-sized enterprises (SMEs) in the UK are deprioritising green initiatives due to increasing expenses.

The research, conducted by Europe's small business lender iwoca suggests more than half of the surveyed SMEs (54%) acknowledge the importance of environmental issues but find it challenging to prioritise them over running their businesses.

With core inflation rates at their highest in 31 years, businesses across the country are struggling to make environmentally friendly measures a priority.

According to Oxford Economics, SMEs contribute 44% of the UK's non-household carbon dioxide emissions, emitting an estimated 160 million tonnes of greenhouse gases.

The study reveals that 42% of SMEs believe that the rising costs of doing business have made going green less important.

Additionally, 54% recognise the significance of green issues but face challenges when balancing them with their day-to-day operations.