A commonly accepted definition for sustainability is "Development that meets the needs of the present without compromising the ability of future generations to meet their own needs". This definition can be applied in a business perspective.
Perth Region NRM has identified the small to medium sized enterprises (SMEs) sector in Western Australia as an area where environmental improvements could be realised.
This business sector is important for its contribution to the social and economic development of the State and across Western Australia, there are approximately 198, 000 SMEs contributing to WA's economy. This sector, particularly the micro (<5 employees) to small business (6-19 employees), often receive little support in terms of access to information and assistance to help them improve their sustainability.
Studies have shown that this is historically a difficult sector to work with the following factors being relevant for many SMEs:
The ecological footprint of SMEs collectively is significant. Soil, air, noise, water & energy are examples of their impacts with the SME contribution are estimated at 60-70% of total pollution levels (Redmund & Labaz 2008)
- SMEs lack the resources, economies of scale and skills to address environmental management and this is often seen as peripheral function of the business with a lower priority than core business
- The SME sector is difficult to work with as these businesses are diverse in their nature and returns from engaging them are usually small when compared to big business.
In Australia, 99% of all actively trading businesses (over 1.95 million enterprises) are SMEs. These businesses employ 3.3 million people or 47% of the private non-agricultural sector workforce. They dominate many important industry sectors and form crucial links in the supply chain of large business.
Perth Region NRM has developed a range of projects aimed at assisting this sector to become more sustainable in their operations, specifically by improving the way in which energy and water is used and by reducing and better managing waste.
PRNRM success with this program is built on strong partnerships and consultation with key stakeholders, such as businesses, business associations, all levels of governments and the tertiary sector. This involves a range of approaches including consultancy services, general information and education provision through to regulation to ensure the prevention of environmental harm.