“How can SMEs be sustainable?” There is no better time for Japan to ask this question. More than 80% of registered businesses in Japan are SMEs. With the COVID-19 crisis impacting the nation, vulnerabilities in systems are exposed and tested, while new trends like remote working are accelerated. Answers begin revealing themselves when we start to reevaluate our relationship with nature and question our sustainability.
And there is an opportunity that lies dormant in the SMEs’ influence on sustainability in Japan. While global corporations are making significant strides, one of the organizers of the upcoming Sustainabili-Tea Talks for SMEs next week, Philip Nguyen, shares why it’s time for SMEs to board the sustainability train and change society for the better.
The potential of SMEs as a sustainability game-changer
Because of how SMEs are positioned between suppliers and customers, Nguyen strongly believes that SMEs are essential in nudging society towards sustainability. “These businesses can act as a hub and effectively communicate their sustainable practices. The more SMEs show sustainable initiatives and practices, consumers who were not necessarily eco-conscious before will also begin to shift their mindset.”
“Furthermore, SMEs play an essential role in re-manufacturing, repair, maintenance, recycling and eco-design. They are critical to creating a greener value change.”
Uncertainty is a defining aspect of the pandemic. For example, construction and hotels operate under the cloud of Olympic blues. Large companies shifted their focus to local supply chains too. Even so, it proposes an opportunity for SMEs.
“I think the COVID-19 situation will drive many SMEs to, first, reevaluate their supply chain as well, and adopt more locally available materials and partners. Second, it will further expand their relationships with their stakeholders, primarily their customers and more importantly their local community and local partners.”
Barriers holding SMEs back from shifting towards sustainability
Nguyen shares that perhaps the issue isn’t about awareness. Many have ingrained sustainability as part of their core philosophy. However, they are unable to make a shift for a few reasons.
“Many SMEs lack the guidance to achieve sustainability. It can be a lack of appropriate role models which they can consult with and explore potential solutions, or a lack of step-by-step guidance for identifying issues and finding practical solutions which they can implement.”
“There could also be an issue in communicating the reasons why businesses need to shift towards sustainability to their staffs and customers. It is also possible that businesses are unable to identify the growing market of young consumers and ethical and sustainable consumption.”
No stranger to the struggles of SMEs, and a new partnership with Zero Waste Japan
Nguyen, too, understands the needs of SMEs in Japan. Due to COVID-19, he had to make the difficult decision of closing Gochiso’s previous service that allowed consumers to donate to social and environmental initiatives while dining out.
Instead, Nguyen created a new service, Mamoru, to connect consumers to sustainability-focused shops and businesses last summer.
“The more people spend and support these kinds of businesses, the more positive externalities are created through their purchases, and the more other businesses will start to adopt sustainable initiatives.”
“Gochiso Inc. and Zero Waste Japan started talking in the fall of last year and found out that our initiatives complement each other very well. Mamoru focused on increasing the number of shops in Japan in various sustainability categories, including the category ‘zero waste.’ Meanwhile, Zero Waste Japan focused on deepening the knowledge and practices of zero waste for businesses. Both founders, Akira and I, were also from the Kansai area and Kyoto University.”
In this newfound friendship, collaboration, and overlapping values around building a sustainable society, they are organizing Sustainabili-Tea Talks to engage the existing community of business owners and any interested in sustainable initiatives for SMEs.
Guiding SMEs to sustainability through Sustainabili-Tea Talks
“We realized the need for connecting people in this community and the importance of sharing first-hand knowledge among SMEs.”
The 3-day event between May 25 to 27 will allow participants to learn about the latest sustainability trends from SMEs, explore how to practice sustainability from businesses that are already implementing sustainability initiatives, and connect with people in the community.
The name “Sustainabili-Tea Talks” was also given to provide a casual atmosphere. It encourages dialogue among speakers for the panel talks and participants for the optional speed networking sessions, since sustainability requires dialogue and the voices of many people.
“Sustainable initiatives can be achieved at all levels, from our individual choices as consumers, to the businesses that we operate, to our partners and supply chains. It takes effort at first, but the starting point is talking about it and sharing related knowledge. A sustainable society can be achieved, and together we can do it, while enjoying some nice tea and making new connections as well!”
If you are interested in participating in the upcoming Sustainabili-Tea Talks from May 25 to 27, you can register for tickets here. The online talks will be conducted in English and Japanese.
[Website] Gochiso Inc.[Website] Zero Waste Japan
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