SMEs say customers don’t care about green credentials

Over 90% of SMEs say their environmental credentials had no impact on whether they had won or lost customers over the past 12 months, a survey of 250 businesses has found.

The survey of companies with 20 to 299 staff conducted by accounting firm Grant Thornton, examined how serious Australia’s small business community really is about adopting green business practices.

The clear message – right now there is no reason to change.

Tony Markwell, national head of privately held business at Grant Thornton Australia says that while SMEs are traditionally quick to adapt to changing trends, the push from consumers simply hasn’t occurred yet.

“It’s just not happening at the grassroots end of Australian business,” he says.

“The SMEs are saying that they have lost no work by not having green practices. What really will push it for them is consumer demand.”

The survey also looked at what would encourage companies to become greener. Consumer demand for greener products was the biggest motivator (82% of respondents), followed by tax incentives for R&D for low-carbon products and services (77%) and rising energy bills (71%).

Just under 70% also said they would make their business practices greener if tenders from clients demanded greener suppliers.

But Markwell says this indicates that despite predictions that SMEs would be required to start displaying their green credentials when bidding for work, this just hasn’t happened.

“I don’t believe it’s happening, except at the big end of town and with public institutions.”

Markwell says he believes SMEs and consumers do want to change, but the Government may need to step in to encourage this.

He believes R&D tax concessions to help SMEs build greener products and services could be an important driver and cites the success of last year’s investment allowance of an example of how successful a measure aimed at SMEs can be.

“I saw at a grassroots level in my client base many people when out and did things because that allowance was there. It really did the job.”

“I think the SMEs are left out of the green debate at the moment. It’s all happening in the stratosphere, but it’s not coming down to the small business level.”