MSMEs can lead the way towards a renewable, circular economy

  • Gerhard Andrey

When it comes to climate crises, the focus is often on the impact of large corporations. Yet MSMEs are the backbone of our economy, with a crucial role in shaping our collective future.

27 June is the UN's Micro-, Small and Medium-sized Enterprises Day (MSMEs Day), and I had the honour of representing Liip to talk about the role of small businesses in helping to solve the climate crises. Here is what I had to say.

Can we trust business to fix the world's problems?

Dear business leaders attendees of today's conference, the trustworthiness of business leaders and companies is intrinsically tied to our economic system. While it has undoubtedly brought unprecedented prosperity, it has also led to severe environmental degradation.

The current market economy has failed to prioritise sustainability

Political leaders have not adequately demanded change. But let us not point fingers or assign blame; the failure lies with society as a whole. It is a collective failure from which we can learn and grow.

I firmly believe that we can overcome these challenges and forge a brighter future.
It begins with recognising the need for an upgrade of our economic system.
We must acknowledge the external costs of economic activity, which have been ignored for far too long.

By incorporating these costs into the prices of products and services, we can establish fair competition and hold companies accountable for their environmental and social impact. We have accumulated an incredible amount of knowledge and data that helps us to understand how our complex world works.

If we apply this knowledge wisely, we can transform the current crises into an opportunity for positive change

We need to measure the impact of economic activities systematically and comparably.
Initiatives such as the UN Sustainable Development Goals provide a globally recognised framework that can serve as a common reference guideline. And to achieve meaningful transformation, we must engage not only large corporations but also small and medium-sized enterprises.

SMEs are the backbone of our economy and play a crucial role in shaping our collective future

At our mid-sized company Liip, we have taken the first steps towards measuring the impact of our customer projects in relation to the UN Sustainable Development Goals. This endeavour has been incredibly motivating, fuelling a shared desire among my colleagues to assess our activities' influence more systematically.

I have unwavering faith in the power of business to lead the way towards a renewable, circular economy. By doing so, we can rebuild trust in CEOs, companies, and entire industries, making progress more attainable.

Thank you for your attention and for joining us in this crucial journey towards a sustainable and prosperous future.

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