LOCAL GOVERNMENT ' S ROLE IN SUPPORTING SMALL BUSINESSES IN THE TRANSITION TO A GREEN ECONOMY
By Tyler Harford, Sunshine Coast Council
SYNOPSIS This article outlines the challenges that small businesses face in transitioning to a green economy, and the role that local government can take in supporting them in this transition. The knock-on benefits this delivers to a region can result in improved investment attraction, tourism and innovation. Small businesses have a limited understanding and capacity to undertake this transition alone, yet commercial opportunities from procurement and consumer spend increasingly rely on a business’ s sustainability endeavours. Local government has the resources to educate and guide small businesses in their low carbon transition to achieve regional sustainability goals and improve commercial competitiveness. EDA members should consider local government’ s role in the global transition to a green economy and factor in sustainability measures that will drive long term economic growth.
LOCAL TO GLOBAL GREEN TRANSITION The global transition to a green economy is underway. Governments at all levels are strategising and creating policy to mobilise the transition in their communities and industries. This is a monumental change that will be fraught with challenges but equally met with opportunities for those that act fast. Australia’ s largest corporates are now faced with federal regulations that require companies to publicly disclose their Environment, Social and Governance( ESG) agendas and progress. The intent is to create more ambitious action in this space. These companies have the resources to implement change to align with the regulation and government ESG procurement policies, but it is a different story for small business.
Small businesses make up 97 per cent of all businesses in Australia, contributing $ 590 billion to our economy annually( National Small Business Strategy 2025). They are a significant part of our economy and a sector that requires more hands-on support to help overcome challenges and realise opportunities. Small businesses also significantly contribute to businesssector emissions, making up 40-50 per cent of total emissions( OECD 2023). So, the question is; as economic developers in local government, what role can we play to support under-resourced and financed SMEs in the transition to a green economy? How do we give them opportunities to help overcome emissions and waste challenges, and to realise the economic benefits?
WHAT ARE THE CHALLENGES FOR SMEs? Currently, there are no federal or state regulations requiring SMEs to address emissions or waste. Despite no stipulated regulation, SMEs are already facing pressure from within the supply chain to introduce ESG policies and reduce emissions and waste. Procurement policies from governments and major corporations are now including stronger language on ESG. So, businesses looking to supply or remain in supply chains must align or be left behind.
Challenges SMEs face when aligning with ESG procurement:
• lack of education and understanding of ESG and its implementation
• little budget to spend on electrification investments like solar and machinery upgrades
VOL 18 NO 2 2025 20 www. edaustralia. com. au