Some 56% of small businesses owners say sustainability goals are hard to reach due to rising costs, according to new research from Mastercard.
Half (51%) of small business owners say ensuring that their business is sustainable is a priority, rising to 70% among younger business owners (18–34s).
But more than half (56%) say that rising costs are making it more difficult to meet sustainability goals.
While small businesses are embracing artificial intelligence (AI) to meet these targets, they are being held back by rising costs and a lack of understanding of the latest technology.
Two-thirds (63%) of small businesses say they already use technology to reduce their environmental footprint, including to decrease their reliance on paper documents, but half (48%) cite cost as a barrier to using technology more frequently.
With small and medium-sized businesses making up 99.9% of the UK business population, the findings cast serious doubt on the UK’s ability to meet its net zero goals unless this knowledge gap is addressed, and additional support is offered.
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Better Business Act chair Mary Portas said that the sustainability conversation is “understandably dominated by larger businesses.”
She stressed however that a fundamental part of the UK business population – small businesses – is “being underestimated.”
“They provide three fifths of the nation’s jobs and account for half the turnover in the private sector. Combined, they have huge clout and it’s brilliant that so many are committed to sustainability.
“But this counts for nothing if they aren’t supported to achieve their net zero goals,” she warned. “This is a group that accounts for 99% of the country’s businesses – if they don’t hit their targets, none of us will.”
Mastercard division president Kelly Devine added: “When you run a small business, you don’t have teams of people who can help you navigate AI, net zero and cybersecurity – you’re in charge of sales, IT and sustainability every day. Big businesses need to help wherever they can.”
