IS GOING GREEN A COSTLY BURDEN OR A GROWTH OPPORTUNITY FOR SMALL BUSINESSES IN WALES?

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-How a Cardiff business is turning sustainability challenges into a success story –

As small businesses in Wales grapple with escalating economic and environmental pressures, the balancing act between sustainability and financial stability is more crucial than ever. A new report from Novuna Business Finance, “Small Business Perspective on Sustainability: Investment, Cost, or Burden”, sheds light on this evolving challenge, as 59% of enterprises in Wales now see sustainability not as a burden, but as an opportunity for diversification and growth.

Sustainability as a Growth Opportunity

The findings from the report highlight a crucial shift in perspective among small businesses in Wales. Beyond traditional environmental goals, businesses are expanding their sustainability efforts to include workplace diversity, community engagement, and the development of an inclusive business culture. This approach is proving to be a powerful catalyst for long-term success and resilience 

Broadening Horizons Beyond Environmental Goals 

Case study:  Iechyd Da

Iechyd Da, was founded in 2019 by Alwen Marshall Lewis. A leading independent and eco-friendly health food shop, the business cares for the environment with sustainability being at the core of the business. Iechyd Da supports the local community by selling a wide range of food, drink, health and cleaning products. 

After a career in teaching, Alwen, motivated by personal health and environmental concerns, launched the shop to fill a local need for health products.Iechyd Da’s core principle is reducing single-use plastics. Alwen says, “We don’t use single-use plastics at all. Our focus is on reducing, reusing, and recycling.” Customers bring in old bottles for refills, and products are sourced from ethical, local businesses. Alwen’s dedication to sustainability extends to fostering personal connections with customers, offering a unique service that encourages eco-friendly practices.

For Alwen, sustainability is more than a business strategy—it’s an ethos. She emphasises gradual, small steps that collectively lead to significant change. “We’re on a gradual journey to better the environment, inspiring others through our actions,” she says.

Sustainability also extends to the wider community. Local businesses, such as hairdressers and cafes, use refillable or recycled products from Iechyd Da. Although initially challenging to coordinate, this collective focus on green practices fosters a strong community spirit.

The story of Alwen’s small business is a great example of how making small sustainable steps can create significant collective change in the local community, with personal connection at the core of what she does.  “We’ve been here for five years now, and the support we’ve had locally is immense. When people want something random, it’s then my mission to find that product for them. That’s what makes us different from going to popular supermarkets – customers know that when they come here, they have personal service, and they know they can have a chat. Then once they’re here, they’re trying things that they would never have tried before. Like, ‘Maybe I could start filling my washing-up liquid bottle here’. Then next week, they’re back for something else.”

Despite these benefits, Alwen feels the financial strain of running a small business amid rising costs and limited government support. “The costs are relentless,” she notes. “Sourcing ethical products while keeping prices competitive is tough. Many policymakers don’t understand the day-to-day challenges of small businesses.” Nevertheless, Alwen remains committed to driving positive change, believing that transformation can start at the grassroots level.

Jo Morris, Head of Insight at Novuna Business Finance commented: “Alwen’s story is just one example among many across the UK, illustrating how small businesses in Wales are increasingly viewing sustainability as a way of boosting innovation and growth rather than a burden. The personal stories we’ve gathered show how sustainability extends beyond environmental impact to become a core aspect of the business and its workforce. This view demonstrates that sustainability is not just a cost to the business but also a strategic investment that drives business growth and resilience. 

At Novuna Business Finance, we are dedicated to supporting our society and making a positive and sustainable difference to people’s lives. The fight against climate change – and the push towards a more sustainable world – are tasks that involve everyone working together. We remain committed to supporting SMEs in integrating and adopting these broad sustainability initiatives.”