The power of being SMALL

“In OECD countries, SMEs play a major role in economic growth, and provide most new jobs. According to OECD’s Small and Medium Enterprise Outlook, over 95% of enterprises in OECD countries are SMEs, which account for 60-70% of employment in most of these countries.”[1]

That Small and Medium Enterprises (SMEs) stand for these huge figures is for me a great opportunity. Just imagine the huge and positive effect would have if all these SMEs founded their business in a social and environmental approach where their actions and decisions are based in a strong and inspired Corporate Social Responsibility (CSR) strategy.

On another blog post I referred to Malcolm Gladwell and his book The Tipping Point. I have to bring it again because I believe that if all SMEs acts as an responsible business in social, environmental and economic aspects very soon we can reach Gladwell’s Tipping Point, “(…) that magic moment when an idea, trend, or social behavior crosses a threshold, tips, and spreads like wildfire”[2]

Moreover, knowing that SMEs and Microenterprises also create 80% of pollution socked me and shows me the importance of working with SMEs in building awareness of the value of creating CSR strategies in the core of the business to create a meaningful social impact.

When companies implement strategic CSR they can find that the benefits are enormous. CSR braced corporate and brand reputations and enhanced trust with key stakeholders (customers, employees, suppliers, investors, etc.) By including CSR in the core of the company, they can improve risk management, revenues and reduce costs from efficiency improvements.

What makes easier to SMEs to create CSR initiatives is that usually SMEs are managed by their owners, who are also often their founders. Probably entrepreneurs, that have other more motivations than making money, started a good number of SMEs. This close connection between managers and owners means that commitment to purpose is more effective and is probably the best way of making CSR the core strategy of a business.

Another advantage for CSR implementation is that personal relationships in SMEs are easier to built and more often to happen. Internally, employees are likely to all know each other and because they all represent sort of a family, the relation with management people is closer and more flexible than in a large company.

SMEs are for me a great opportunity to prove that when businesses are fostered under responsible guidelines and with a CSR strategy that pursues a meaningful social impact, different and more positive results will bring for both company and society. If 95% of enterprises in OECD countries are SMEs, working with them and all of their employees, investors, suppliers and customers mean influencing a good number of people that will act better, responsible and aware of the impact their daily actions mean to the environment and to the society.

Comments Off on The power of being SMALL / 06 Apr 2014 por anamariarocha
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