Going green has cost entrepreneurs £3.1billion over the past year

According to entrepreneur think tank, the Tenon Forum, high costs are dampening businesses’ appetite for going green with nearly half (42 per cent) of UK small companies polled failing to implement any environmental measures to date and a fifth (19 per cent) having no plans to do so in the future.

It appears that recycling and improving energy-efficiency are not worthwhile for UK SMEs – over a quarter (27 per cent) believe the cost of adopting environmentally friendly measures outweighs the benefits for the business.

And following last month’s so-called ‘green Budget’, the research suggests cynicism is rife amongst SMEs. More than half (60 per cent) of owner-managers believe efforts to drive green business behaviour are motivated by the desire to win votes, rather than out of genuine concern for the environment.

However, almost half (45 per cent ) of owner-managers agree that the UK tax regime should be used to encourage green practices among businesses but 44 per cent agree this revenue should be ring-fenced to fund environmental initiatives.

At the same time, many think green initiatives enhance their reputation – a fifth (21 per cent) of owner-managers agree that adopting environmental measures gives a business a competitive edge, compared to those who don’t have any green credentials.

Andrew Jupp, Tenon’s National Head of Tax, said:

"It’s clear that UK entrepreneurs feel strongly about green issues and rightly so. Many small businesses are keen to exercise their green credentials and to reduce their carbon footprint but this Government is simply making it too difficult and too expensive for them.

"Thousands of pounds worth of green taxes are stretching SMEs to their limit and with the Government advocating green business practice so vehemently, it’s crucial they find ways of making this easier and suggest viable ways to do so. While most support implementing policies that reduce their environmental impact, they also cannot do so alone. Entrepreneurs need the Government to motivate and reward best environmental practices so that green behaviour also makes a genuine difference to their bottom line."