Entrepreneurs yet to grasp green mantle, according to Deloitte report.

 A new report out today by Deloitte shows that small business in the UK are failing to recognise the potential benefits arise from adopting environmentally friendly behaviour.

The claim was made in Deloitte's Entrepreneurship UK: 2008 report.

Only 29% of small businesses are currently undertaking any carbon reduction initiatives, despite more than a quarter of the businesses surveyed believing that environmental issues will have a positive impact by presenting opportunities to exploit new products and services.

Energy saving leads the way

Nearly two-fifths (38%) of companies questioned say they are many years away from introducing changes to reduce their carbon footprint, while 33% say they will do so in the next one or two years.

Most of the green initiatives being employed by UK entrepreneurs involve waste reduction, recycling and energy conservation - not surprising when we note the massive surge in energy costs.

While energy saving has clear money saving benefits more complex initiatives, such as reducing CO2 emissions for the business as a whole, water conservation and imposing green requirements on their own suppliers are not as popular.

This reflects the greater focus and resources required, which is less readily available in a fast growing entrepreneurial business.

Costs vs opportunity

Richard Crane Deloitte's entrepreneurial business partner says that while there are some notable exceptions, "many entrepreneurs still see environmental initiatives as representing a cost to the business rather than an opportunity. The reality is that there are two broad reasons why entrepreneurs should have green issues firmly on their agenda. Firstly, environmental factors are increasingly influencing the buying decisions of both businesses and consumers."

Crane sites the example of pressure from shareholders on large businesses to be responsible corporate citizens resulting in larger companies increasingly vetting the environmental records of their own suppliers.

There is also a growing pressure on businesses and individuals to reduce their environmental impact inevitably bringing opportunities for new products and services to help them meet these goals.

The innovative nature of entrepreneurs combined with their agility to respond to market opportunities quicker than larger corporates, should place them in an enviable position to capitalise on environmental challenges.

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