SMEs Want to Go Green—But Face Real Barriers
Sustainability has become more than a buzzword. Customers want it, regulators demand it, and investors reward it. Many SMEs in the Philippines are aware of this shift—and a growing number are eager to adopt greener practices.
But here’s the catch: wanting to go green and being able to do so are two different things. A 2024 study on SME “greening” showed that while willingness is high, SMEs face barriers in technology access and market access. Finance, surprisingly, wasn’t the biggest issue. The problem isn’t the will—it’s the way.
And with Philippine Star (2025) reporting rising calls for sustainability and ESG reporting even among non-listed firms, the pressure is only increasing.
The Everyday Roadblocks
SMEs encounter these challenges when trying to green their businesses:
Lack of technology. Cleaner, more efficient equipment or processes are often too costly or unavailable locally.
Limited market access. Even if SMEs adopt sustainable practices, they struggle to reach markets willing to pay a premium.
Knowledge gaps. Many owners don’t know where to start or how to measure impact.
Weak policy support. Incentives for going green exist, but navigating them is complicated.
Perceived risk. Owners fear sustainability will increase costs without clear returns.
The Missed Opportunity
Green business isn’t a luxury—it’s a competitive edge. SMEs that adopt sustainability can:
Save money by cutting waste and using resources more efficiently.
Build customer trust with eco-friendly practices.
Attract investors who prioritize ESG-ready businesses.
Gain access to new, higher-value markets that demand sustainable products.
The evidence is clear: ESG is no longer just for listed corporations. Even SMEs will be judged on their environmental and social impact.
The Way Forward
Three practical moves for SMEs:
Start with efficiency. Save on energy, water, and materials—green starts with cutting waste.
Tell your sustainability story. Customers and partners want proof, not perfection. Share small wins.
Leverage associations. Business associations can provide shared tools, training, and access to green markets.
Where Ampersand Fits In
Purpose & Impact: We help SMEs integrate sustainability into business models so it drives growth, not just costs.
Brand & Creative: We craft stories that show proof, avoiding greenwashing.
Culture & Capability: We embed sustainability into daily practice, not just policies.
Commons & Campaigns: We unite SMEs in campaigns that shift consumer demand toward local, green products.
The Big Picture
The willingness to go green is already there. What’s missing is the pathway. With the right strategy, technology, and storytelling, SMEs can move from saying “we want to” to proving “we are.”
References
Somova, N. (2024). Do Business Success Barriers Impede the Readiness of Philippine SMEs in “Greening” Their Business? SSRN Papers.
Philippine Star (2025). Sustainability Reporting for Large Non-listed Firms in the Philippines.
