Introducing the Sustainability Pulse Check

As we all know, guiding Small and Medium-sized Enterprises (SMEs) toward sustainable practices is crucial. SMEs form the backbone of many economies, and their impact on society is significant.

Let's examine sustainable entrepreneurship within SMEs, guided by recent findings from the study "State of Sustainable Entrepreneurship in SMEs: Development of a Cross-Country Sustainability Pulse Check" by Nikola Balić and Ivana Vuka.

This study sheds light on the drivers of sustainable entrepreneurship across 37 countries, introducing the Sustainability Pulse Check tool to help SMEs progress toward sustainability.

Understanding the Drivers of Sustainable Entrepreneurship

1. Knowledge and Understanding of Sustainability

The study emphasizes that knowledge and understanding of sustainability are fundamental to sustainable entrepreneurship in SMEs. This extends beyond mere awareness to a comprehensive grasp of sustainability issues and solutions.

Actionable Insight: Organize workshops and webinars to educate SME owners and employees on sustainability. Use relatable case studies to illustrate the benefits of sustainable practices.

2. Organizational Commitment to Sustainability

An organizational commitment to sustainability is another vital driver. This involves integrating sustainability into the company's core strategy and operations.

Actionable Insight: Help SMEs develop a clear, actionable sustainability policy. Encourage leadership to set and publicly commit to sustainability goals, with regular progress monitoring.

3. Employee Education and Culture

Employee education and fostering a pro-sustainability culture within the organization are crucial. When employees understand and value sustainability, they actively contribute to driving sustainable practices.

Actionable Insight: Implement regular sustainability training for employees, highlighting how their daily activities can be more sustainable. Cultivate a workplace culture that recognizes and rewards sustainability initiatives.

The Role of External Value-Chain Pressures

External factors like value-chain pressures can influence SMEs' sustainability efforts. Companies facing sustainability demands from partners, suppliers, or customers are more likely to adopt green practices.

Actionable Insight: Work with SMEs to map their value-chain and identify areas where sustainability expectations are high. This can help prioritize efforts that align with market trends and client expectations.

The Sustainability Pulse Check: A Practical Tool

A Quick Assessment Tool

The Sustainability Pulse Check is designed as an efficient, user-friendly way for SMEs to assess their sustainability status. It focuses on key areas, providing actionable insights quickly.

Reception and Implementation

The tool uses a 5-point Likert scale, simplifying response capture. SMEs in early tests found it straightforward, increasing the likelihood of acting on the findings.

Versatility and Accessibility

The Sustainability Pulse Check serves as a "sustainability thermometer" - a first touchpoint for SMEs on their sustainability journey. It can act as a lead generator for new clients and help reactivate relationships with existing ones. The tool is 100% digital and standardized, offering unique survey links, translations, and QR codes for easy distribution to clients.

Actionable Insight: Introduce the Sustainability Pulse Check as part of your initial client assessment. Use the results to develop tailored sustainability roadmaps, making the journey to sustainability clear and manageable for SMEs.

Conclusion: Advancing Sustainable Entrepreneurship Together

As advisors, you play a crucial role in driving the transition towards sustainable entrepreneurship in SMEs. By applying insights from the Sustainability Pulse Check study in practical ways, you're promoting sustainability and helping businesses align with environmental needs.

When working with SMEs, remember that education, commitment, and culture are key to sustainability. The Sustainability Pulse Check is a valuable first tool in guiding this transformation.

Consider implementing the Sustainability Pulse Check tool in your advisory practice. It can serve as an excellent starting point for sustainability discussions with your clients. Share your experiences and challenges in the comments below—let's learn from each other.

You can try the sample survey here.