Fostering Climate Resilience and Sustainability for Small and Medium Enterprises (SMEs)

The 11th Annual SME Conference and Expo, hosted by Strathmore University Business School on 12th and 13th October 2023, opened on a promising note, bringing together more than 150 SMEs and social enterprises.

The event, themed; Sustainability and Climate Resilience: Creating Opportunities for SMEs, created a much-needed platform for key stakeholders in the Kenyan SME and sustainability sectors to have conversations and chart a way forward for both SMEs and social enterprises.

Climate change poses a significant threat to businesses across various sectors and geographical regions, transcending boundaries. Businesses, which once primarily prioritized growth and consumer satisfaction, are now pivoting towards the “3 Ps” – People, Profit, and Planet – in their operational ethos.

This year’s conference sought to shift the narrative from viewing sustainability and climate resilience as mere burdens for compliance requirements to recognizing them as powerful drivers of innovation, competitive advantage, economic growth, and societal impact.

In his keynote address, Ebele Ogbue, Regional CEO, of East and Southern Africa for the United Bank for Africa (UBA), noted the critical role that SMEs play in economic development, noting that it is high time they adopt sustainable initiatives and business models. “Climate Change is not just an environmental issue. It is a global challenge that affects economies, societies and businesses at all levels. It is imperative that we explore how SMEs can not only adapt to climate change but also seize opportunities for growth through sustainable business models,” Ebele emphasized.

One of the panelists, Mary Wanjeri Mbugua, Regional Trade Facilitation Office of Economic Growth and Integration, commended the efforts undertaken by climate-conscious SMEs, emphasizing their commendable commitment to environmental preservation. This commitment extends from sourcing practices to energy-efficient production methods and efficient waste management.

As part of the Africa Trade and Investment Program, Mary highlighted the vital role of SMEs, which account for 90% of jobs globally and often employing one or two individuals. “These small businesses play a crucial role in completing the broader business value chain,” she noted. She further emphasized the need for businesses to shift their perception and invest in workshops, forums, and training programs to enhance their knowledge base.

Mary noted that several of these forward-thinking SMEs have received support congruent with their environmental initiatives. One noteworthy example is an enterprise that transforms market waste into organic fertilizers, contributing to waste reduction and environmental sustainability.

Sustainability cannot be over emphasized; it is a clarion call for all businesses to balance production with safeguarding resources for future generations. By doing so, businesses empower themselves to better and to withstand the unprecedented challenges posed by climate crises as they seek to grow and thrive.

SMEs are striving to maintain equilibrium despite the adversities posed by the climate crisis, compelling them to innovate or risk obsolescence. Innovation, in this context, refers to a shift toward solution-oriented strategies to address the challenges at hand and ensure the long-term viability of businesses.

Speaking in another panel session, Robert Kibara, CEO, HFC Group, dispelled the notion that sustainability is inherently expensive. Instead, he portrayed it as a strategic investment opportunity, motivating both large and small firms to venture into this space.

By embracing sustainable business models, sustainability practices and building resilience to climate change, the enterprises can mitigate environmental risks and unlock new business opportunities and enhance their overall sustainability and viability in the long run. The urgency for SMEs to embrace sustainability can not be underscored, as it presents a pathway to a brighter future.

Article by Juliet Hinga