Life cycle thinking in small and medium enterprises: the results of research on the implementation of life cycle tools in Polish SMEs—part 1: background and framework

Abstract

This article is the first of a series of articles presenting the results of research on the implementation of life cycle management tools in small- and medium-sized companies in Poland. This work is part of a project financed by the Polish Agency for Enterprise Development (PAED) which began in February 2011. It was carried out by the Wielkopolska Quality Institute—a business environment institution associated with the Polish Centre for Life Cycle Assessment (PCLCA). The main practical objective of the project was to support small and medium enterprises (SMEs) in their business development, e.g. by expanding their horizons beyond the sphere of their operation and identifying new areas for improvement and promotion of the products and services on offer. These publications are a voice in the discussion on the opportunities and pertinence of implementing life cycle thinking (LCT) in small- and medium-sized enterprises and an attempt to identify potential barriers arising from specific characteristics of SMEs which could hinder or even prevent the effective implementation of life cycle techniques. Part 1 presents the situation of SMEs in Poland, general objectives of the project and organisation of the survey process. It was decided to carry out research on the effectiveness of the implementation of LCA and life cycle costing (LCC) in organisations that had received financial support for the implementation of life cycle techniques. Financial constraints, which might potentially be a reason for limited interest in LC techniques among SMEs in Poland, were taken into account. Thus, financial support provided an opportunity for the project to obtain information from a wide range of companies, not only from those companies that were particularly aware of the benefits of LC techniques or had a very good financial situation. Research based on the method of individual in-depth interviews was preceded by an analysis of literature showing the status of SMEs in Poland. Given the results, the project objectives were formulated and the ways of conducting the research were defined. The comparison of Polish SMEs with the same category of companies in the EU shows some similarities, such as the percentage of companies engaged in various businesses. The differences are expressed primarily in the financial potential, which in the case of Polish SMEs, is significantly smaller than the average in the EU. In the SME sector, there are less than half as many small businesses in Poland than in the EU. There are, however, many more microbusinesses in Poland. An evaluation of the prevalence of LCA and LCC techniques indicates that they are used by just 3 % of Polish SMEs, which is a very small proportion compared to the more than 50 % of SMEs taking any environmental measures. Information collected on specific details of Polish SMEs was used to identify the target group and develop a survey questionnaire which aimed to audit, among other things, the approach to environmental and economic analyses in the past and the approach to the LCA and/or LCC analyses that were implemented from the point of view of difficulties in their implementation and potential use of the results. Part 1 of the series of articles demonstrates a marginal-scale dissemination of life cycle management techniques among Polish SMEs. Companies definitely prefer to introduce relatively simple solutions that do not require specialised knowledge or unnecessary costs, e.g. they introduce energy-saving bulbs and waste segregation. Only a small percentage of companies implement more complex activities, and most commonly, these are medium-sized companies with greater financial and human capital. So what should be done to make SMEs use life cycle techniques more frequently? Is it appropriate to make changes in the methodology and life cycle techniques as such, or should, rather, the incentive for SMEs to use LCT come from outside as a requirement of public institutions or suppliers in a supply chain? Answers to these questions are provided in the research conclusions presented in parts 2 and 3 of the series of articles.