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Small firms ask for more government help to get to Net Zero

8 November 2022

Small businesses across the UK are calling on the government to take more of a lead to encourage and support the green initiatives of small enterprises.

A new poll of small business owners conducted by Novuna Business Finance has found that most small businesses are committed to tackling the climate emergency despite the immediate economic challenges they face - but many would like to see government do more to support the green initiatives of small firms.

Despite the tough economic climate:

  • 85% of UK small businesses are working hard to put green issues higher up the agenda
  • 17% have green issues on the agenda for senior management meetings
  • 17% run green incentives for their staff
  • 21% encourage staff ideas on green projects
  • 16% run staff education programmes on the urgency of climate change issues.

These positive steps continue in spite of the economic challenges facing small businesses, who cite their top worries as:

  • the rising cost of living (47%)
  • rising fuel prices (34%)
  • the economic impact of COVID (34%)
  • rising interest rates (24%)
  • the long-term impact of Brexit (23%)

However, many small business owners say the government could be doing more to help them. Only 20% of small businesses cited the influence of government advice on their move to use renewable energy. The figure was even lower when it came to presenting the case for electric vehicles (19%), using less packaging (12%), cutting down on business travel (11%) or weighing up the relative benefits of staff car sharing schemes (9%). In addition, 28% of enterprises say the government should give small businesses clearer guidelines on what steps they can take to help supply chains become greener.

Joanna Morris, head of insight at Novuna Business Finance, said:

"Successive governments have done a great deal to support Net Zero and the green agenda but, despite the current and immediate economic challenges, now is the time to maintain a focus on the climate commitments made in recent years.

 

"The global debate on climate change often focuses on major businesses and their role as change agents. Yet it is clear from our research that the small business community has a vital role to play. Combined, they employ three-fifths of the UK workforce and their relative size and agility means they can adapt more quickly. Furthermore, whilst many small businesses are making good progress on the road to becoming Net Zero and sustainable, they expect government to take a lead - to devise policies, offer support and frame guidance that small businesses can follow."

Written by Rachel Miller.

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