Climate Change and Small Businesses
Climate South East commissioned Step Ahead Research to investigate the attitudes of directors and managers of Small and Medium Sized Enterprises (SMEs) towards climate change. SMEs are businesses with less than 250 employees. This report presents the research findings.
This study comprises three elements: a quantitative telephone survey with around 300 SMEs, an in-depth telephone survey with 13 directors and managers, and a desk-based review of published information.
The results indicate that climate change tends to be viewed by SMEs in terms of the impact on their business, for example flood damage and lost sales, and market opportunities, e.g. increased demand for air conditioning and cold drinks during hot weather. On the other hand, many activities undertaken by SMEs in response to climate change are motivated by the personal beliefs and views of directors, managers or employees.
95% of SMEs are engaged in some kind of activity to reduce carbon emissions, with 75% undertaking activity to respond to the possible consequences of climate change. Cutting waste and reducing energy consumption are the most commonly reported mitigation activites, and are relatively cheap and easy to implement.
Cost savings and improved competitiveness are amongst the top drivers likely to encourage SMEs to take more action on climate change. However, SMEs may be discouraged by a lack of resources, doubts over whether their activities will make a difference and the behaviour of public sector bodies.
Although 93% of SMEs know whether or not they are located in a flood risk area, only a small proportion know how to calculate their company's cabon emissions (17%). 75% of small businesses would like to have simple practical information and advice on how to calculate carbon emissions and how to adapt to the impacts of climate change. Currently available publications are viewed as too in-depth and complex for small businesses.
The report proposes some possible approaches to addressing these issues. These include:
- Direct targeting of SME directors and managers to eoncourage them to understand and believe in the importance of acting on climate change;
- Advising small businesses on what they can do next to increase their activities, or expand existing ones;
- Raising awareness of the potential impacts of extreme weather conditions amongst SMEs;
- A toolkit / checklist setting out areas to consider in terms of potential climate change impacts;
- Encouraging small businesses to engage in joint activites with members of the communities in which they are located;
- Improving information flows from local authorities and Business Links to small businesses.
Dated 30/07/2008
Owning Organisation
Climate South East - http://www.climatesoutheast.org.uk
Data Type
Research Report
Spatial Coverage
South East
Theme
Economy, Environment

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