Small Business Series: How to embrace sustainable practices as a small business that won't break the bank.
We live in a world driven by globalization where the support of local communities and viewing them as an integral part of a business's licence to operate often takes a backseat. Thankfully, this is starting to change and for many small businesses, embracing localized sourcing is not only a conscious choice but also a strategic one.
Localized sourcing involves buying goods and services from nearby suppliers rather than distant or international ones. This is an integral part of the circular economy principle and is important for keeping money flowing in the local economy. Let's take a closer look at why localized sourcing matters and the benefits it brings to small businesses.
Fostering Community Bonds
Choosing local suppliers creates a strong relationship between the business and the community. It's a mutual support system where each party contributes to the other's success. Each time a local business buys from a local supplier, it keeps that money in the community which in turn, strengthens it. At the same time, it's worth remembering that your supplier and those loyal to them are often your customers too as they have a strong bond with your supply chain.
Local Customer Base
Studies show that when businesses use local suppliers, those suppliers themselves often become clients as they have a strong connection to the end product. In turn, their clients may also become your clients as your supplier has a vested interest in supporting the business. Local suppliers are equally more likely to recommend your product or service to others which is great free marketing!
Reducing Environmental Impact
This will not be news - opting for local suppliers significantly reduces transportation emissions. By cutting down on long-distance shipping, businesses lower their carbon footprint, contributing to a more sustainable planet. It's a small step that collectively makes a big difference in mitigating climate change and from an economic perspective, can help small businesses avoid supply chain carbon charges down the road.
Quality and Freshness Assurance
Fresh produce, as an example, always tastes better than the ones that have been travelling for days. Local sourcing often means fresher, higher-quality inputs for our products or services as the proximity of local suppliers allows for a closer relationship and better communication, ensuring that businesses receive top-notch materials for their business operations which in turn also supports the growth of their suppliers (which then supports the community).
Boosting Economic Resilience
We all saw and felt what happened when the global supply chain was disrupted during the COVID-19 pandemic. It caused chaos and ultimately, was the downfall of many businesses.
In times of uncertainty, having a network of local suppliers provides a buffer against global disruptions in the supply chain. It enhances a business's ability to adapt and respond swiftly to changing circumstances, ensuring continuity even in challenging times.
Customization and Collaboration Opportunities
Local suppliers are more likely to offer personalized services, tailored to specific needs and timeframes. This flexibility opens doors to collaboration and innovation, as businesses can work closely to create unique, high-quality products that set them apart in the market.
Aligning with Consumer Values
Today's consumers are increasingly conscious of where their products come from. By proudly sourcing locally, businesses align with the values of a growing segment of consumers who prioritize supporting businesses deeply rooted in their communities.
Embracing localized sourcing isn't just about making a sustainable choice; it's about investing in the resilience and prosperity of a community. As a small business, this approach strengthens ties, reduces environmental impact, and ensures that companies can consistently deliver high-quality products or services. It's a strategic move that not only benefits business but also reverberates positively throughout the community we call home.
About the Author
Kathryn Andrews
Kathryn is the founder of Realise Change, a B Corp certification and HR consulting practice helping SME leaders and entrepreneurs build profitable, people and planet-focused businesses.
With nearly 2 decades of global corporate HR experience, and her passion for sustainability, Kathryn's expertise and knowledge provide a valuable resource for business leaders to build forward-thinking, resilient practices that are aligned with the highest standards of social, governance and environmental standards set by B Corporations globally.
Kathryn is recognized by clients as a true business partner, working hand-in-hand with business leaders toward a successful resilient future. Connect with her here
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