Environmental capabilities of small and medium sized enterprises: Towards transition to a low carbon economy in the East Midlands

Abstract

This paper presents the results of a survey-based study, which involved 120 small and medium sized enterprises in the East Midlands region of the UK, and aims to explore small and medium sized enterprises environmental practices, environmental capabilities and awareness of the regional support for green growth. Environmental capabilities of small and medium sized enterprises are found to be bound to energy efficiency projects, with very few small and medium sized enterprises having a strategic outlook toward developing these capabilities. The majority of small and medium sized enterprises did not access governmental grants to improve energy efficiency, and those who did accessed governmental rather than NGO or private sources. Around a third of small and medium sized enterprises did not invest in any form of Environmental Management System or Environmental Management Accreditation over the last two years. Environmental capabilities, which are considered to have a direct positive impact on cost reduction, are found to be attracting the highest demand from small and medium sized enterprises. The study offers a typology of small and medium sized enterprises environmental capabilities providing a valuable conceptual development in understanding the links between various environmental capabilities and their significance for the strategic success of an enterprise.