Small businesses operate in a complex and dynamic environment, they need to ensure that they are financially healthy, environmentally friendly, and digitally orientated. Different Government-backed support programs exist that assist SMEs to enhance their Lean approach, environmental management, and digital strategy.
What is Lean and Why is it Important?
Lean is a systematic approach to sustainable improvement that aims at creating value for the customer with the least amount of waste. Lean management was first developed for the manufacturing sector and has since been expanded to other sectors such as retail, hospitality, and services. It is important for small businesses to implement these practices in order to cut down on costs, increase efficiency, and reduce lead time. For instance, a hardware store that applies a Lean approach may focus on a Lean warehouse layout to reduce time needed to stock and retrieve products or implement a new and efficient point of sale system that will reduce the time that customers spend in the queue. The Local Enterprise Office (LEO) provides a highly subsidised Lean for Business program that assists SMEs in the implementation of these principles.
Why Every Small Business Must Go Green.
It is no longer a question of whether businesses should be environmentally friendly but when they should. Consumers today prefer to buy products from companies that are friendly to the environment. Also, there are legal requirements for companies to decrease their effects on the environment. The European Union’s Corporate Sustainability Reporting Directive (CSRD) requires larger companies to report their environmental impact and in the future, SMEs will also be required to meet these standards.
A builders merchant or hardware retailer for instance could be environmentally friendly in various ways; by upgrading systems to reduce energy consumption in the business or by minimising carbon emissions through proper management of their transport. The LEO Green for Business programme, a two-day free consultation with a green expert, helps businesses to determine how they can lessen their effects on the environment. Businesses that go through this program can then apply for the LEO Energy Efficiency Grant that covers up to 75% of eligible costs (up to €10,000) for energy conservation spending.
The role of Digital in going Lean and Green:
Digital technology is the link between Lean and Green strategies. With the help of digital technologies, companies can minimise human errors, track energy consumption and make decisions that will help to increase efficiency and decrease environmental impacts.
For instance, a builders merchant or hardware retailer can use digital tools to track the level of stock in the warehouse or in the field, thus avoiding overstocking and subsequent cost impacts. Digital point of sale systems could be combined with online sales channels for better performance. Also, energy tracking systems provide businesses with the ability to identify areas of energy consumption and suggest ways of reducing costs. The LEO Digital for Business programme offers a free three-day business diagnostic that helps businesses understand their digital maturity, develop a digital strategy, and assist with current or future software needed for day to day operations.
To further encourage the uptake of digital adoption in businesses, the LEO Grow Digital Grant offers funding towards new off the shelf software. The grant pays 50% of the cost of new digital tools and training, the maximum grant amount is €5,000.
The Need to Measure and Promote the Impact.
Cutting down on carbon emissions and enhancing the efficiency of operations is not enough; companies have to demonstrate they are doing so. Digital technologies are critical in measuring sustainability efforts and demonstrating results to customers, suppliers, and regulators.
For example, a builders merchant or hardware retailer can use digital dashboards to show the reduction in carbon emissions, display energy savings from the use of LED lighting and upgraded heating systems or display the percentage of environmentally friendly products sold.
Why It Is Beneficial to Go Lean, Green, and Digital.
The implementation of the Lean, Green, and Digital approaches brings many advantages to a business.
For Customers: Improvement in service delivery, shorter wait time, and environmentally friendly business operations will increase customers’ confidence in the business.
For Business Owners: Costs are minimised, profitability is maximised and compliance with current and future standards and regulations is improved.
For Staff: A more efficient working environment makes the job easier to do by reducing stress while improving productivity.
Support for Small Enterprises: A Business Focus The Lean, Green and Digital programmes are available to small businesses through their Local Enterprise Office (LEO), which has offices across the country and assists businesses with up to 50 employees. Contact your Local Enterprise Office to find out more about these supports and begin your business change process today: www.localenterprise.ie
To find out more about other national business supports, please visit the National Enterprise Hub: www.neh.gov.ie
Photo: John Shanahan Consultant, Lean BPI
