Initiating Sustainability in Microbusinesses

After COP26 and with COP27 on the horizon, people are becoming more aware of environmental issues.

Governments, brands, and activists are leading public campaigns, influencing how consumers shop and how much they’re willing to spend.

It’s crucial for everyone, from big companies to tiny microbusinesses, to improve their sustainability practices.

This shift towards addressing climate change has affected various aspects of our lives, especially commerce. Despite the cost of living crisis, consumers prioritise shopping ‘with a conscience’ from sustainable and ethical brands.

According to recent research, 58% of people are more likely to shop with a small business if it’s environmentally friendly, and 50% have actively chosen to support small, sustainable businesses in the past year.

Some companies are committed to helping microbusinesses integrate sustainability into their operations and foster growth. We understand that the entrepreneurial journey is unique for each individual.

When talking to microbusiness owners, we’ve identified some common challenges they face in embracing sustainability.

Firstly, many lack the expertise needed for sustainable business practices, making it overwhelming to develop a strategy.

Secondly, financing poses a challenge. Transitioning to eco-friendly suppliers may affect revenue, as sustainable options like packaging can be more expensive. Microbusiness owners worry that raising prices could lead customers to opt for cheaper alternatives.

The final challenge is that many businesses, especially microbusinesses, operate in spaces they don’t control. For instance, builders and handymen work in their clients’ workplaces, while sole traders may use shared office spaces.

Despite potential concerns, microbusinesses should consider the long-term benefits of going greener. Thirty percent of consumers plan to exclusively shop with sustainable businesses in the future, indicating that an investment now could lead to increased customers and profits later.

Small businesses often compete with larger counterparts that have more suppliers, cheaper products, and greater funding. Embracing sustainable practices offers a unique opportunity for smaller businesses to stand out.

Research shows that 42 percent of consumers are more likely to choose a small retailer with strong sustainability credentials over a larger, cheaper competitor.

As expectations for corporate responsibility rise, transparency becomes crucial for businesses of all sizes. Microbusinesses have a unique position to embed sustainable practices from the start.

Some companies’ focus is on empowering entrepreneurs worldwide and making opportunities more inclusive for microbusiness owners. They aim to change the way people work and live for the better.

They’ve partnered with Hannah to create a micro-business toolkit, distributed to our two million small business customers in the UK, encouraging sustainability and working towards a plastic-free world.

By adopting sustainability, small businesses reduce their environmental impact, operate ethically, and manage risk effectively. This not only benefits the environment but also opens up opportunities for more customers and revenue.

GoDaddy, with its global reach, acknowledges its global responsibility. Like its customers, the company is working towards a more sustainable future, committing to reducing its scope 1 and 2 greenhouse gas emissions by at least 50 percent by 2025, with ongoing efforts towards longer-term goals.