Going green is causing entrepreneurs to see red

23 April 2008

The costs of going green are putting smaller businesses off, with nearly half (42%) of UK SMEs surveyed having failed to implement any environmental measures to date while one-fifth (19%) have no plans to do so in the future.

According to entrepreneur think tank the Tenon Forum, SMEs do not see recycling and improving energy-efficiency as being worthwhile with 27% believing that the cost of adopting environmentally-friendly measures outweighs the business benefits.

Most seem unimpressed with politician's recently acquired taste for all things green. More than half (60%) of owner-managers believe efforts to drive green business behaviour are motivated by the desire to win votes, rather than out of genuine concern for the environment.

Rather contradicting this cynicism, however, many think green initiatives enhance their reputation.

A fifth (21%) of owner-managers agree that adopting environmental measures gives a business a competitive edge, compared to those who do not have any green credentials.

Andrew Jupp, Tenon’s National Head of Tax, said: "Many small businesses are keen to exercise their green credentials and to reduce their carbon footprint but this Government is simply making it too difficult and too expensive for them."

While most SMEs support implementing policies that reduce their environmental impact, he went on, they cannot do so alone.

He called on the Government to motivate and reward best environmental practices so that green behaviour also makes a genuine difference to their bottom line.