The value of sustainability for SMEs

SMEs constitute a pillar of the European economy and the global value chain, so these businesses play a pivotal role in the challenging transition toward sustainability. Without their total engagement, this transition simply would not happen. But by the same token, for SMEs this challenge represents an incredible opportunity to achieve or bolster a competitive advantage. This not only because of the innovative impetus that a sustainable approach gives; it also ensures access to certified supply chains, better financing conditions, and strategic partnerships with public and private entities.

According to EU projections, by 2030, businesses are expected to generate economic opportunities totaling $12 trillion worldwide thanks to the sustainability transformation. What’s more, 380 million jobs will be created, more than half located in developing countries.

So in light of the challenge that European SMEs are facing in the near future, in our white paper Fostering Sustainability in Small and Medium-sized Enterprises, we first set out to analyze the approach of these businesses to sustainability, analyzing the criticalities and drivers of success. Second, we provide an initial systemization of the tools and initiatives that are currently available to get SMEs on board with the sustainability agenda, and to create a European platform that spotlights sustainable businesses and prompts small and medium-sized entrepreneurs to adopt more responsible business models from an environmental, economic and social standpoint.

Read more on SDA Bocconi Insight