Latest news with #microenterprises
Malay Mail
3 days ago
- Business
- Malay Mail
Small steps, big gains: Sustainability for our micro-entrepreneurs — Dalilawati Zainal
AUGUST 8 — In Malaysia, sustainability narratives often bring to mind images of large corporations reporting on environmental, social and governance (ESG) metrics. Public-listed multinationals dominate headlines because investors, regulators and international supply chains are pushing them to clean up their act. But meaningful, progress must start closer to home, for examples, among street vendors in Penang, mobile spa owners in Shah Alam and home bakers in Kuantan. Micro-enterprises form the backbone of Malaysia's economy. SME Corporation Malaysia reports that they represent nearly 70 per cent of the micro, small and medium-sized enterprises (MSMEs). Their impact is especially visible in informal markets and lower-income communities, where jobs and incomes depend on tiny retail kiosks, food stalls and home-based services. However, studies by SME Corp and local universities reveal that these operators often view sustainability as a distant concept meant for 'big business' only. Why sustainability matters at the grassroots? From a management perspective, sustainability is fundamentally responsible business. It involves reducing waste, using resources efficiently and strengthening relationships with stakeholders, especially customers and suppliers. When implemented well, these initiatives help micro-entrepreneurs lower operational costs and improve business stability. Whether they realise it or not, they already practise many of these behaviours. For example, switching off appliances when not in use, reusing packaging, sourcing ingredients from local suppliers or car-pooling deliveries to save fuel. Nevertheless, they seldom disclose these practices as 'sustainability'. Recognising these practices as part of a sustainability strategy legitimises what owners do intuitively and encourages them to build on it. Evidence suggests that consumers reward sustainability efforts. A global survey by Nielsen found that roughly 73 per cent of consumers would definitely or probably change their consumption habits to reduce environmental impact. Although a global statistic, it resonates in Malaysia, where many young consumers seek brands that align with their values. Communicating environmentally responsible actions (e.g. using recycled packaging, supporting local farmers or offering discounts for reusable containers) can strengthen customer loyalty and attract new patrons. The financial benefits are tangible. For example, turning off lights and unplugging equipment during non-operating hours reduces electricity bills. Purchasing ingredients in bulk or coordinating orders with neighbouring businesses lowers transportation costs. Sourcing from local suppliers cuts emissions and keeps money circulating within the community, which in turn supports the customer base. These efficiency gains improve cash flow and margin stability, which are critical issues for micro-entrepreneurs, whose profits are often thin. Sustainability is fundamentally responsible business. It involves reducing waste, using resources efficiently and strengthening relationships with stakeholders, especially customers and suppliers. — Picture by Sayuti Zainudin Overcoming barriers through support networks Micro-entrepreneurs often grapple with limited education, digital access and razor-thin profit margins. These constraints make sustainability seem costly and complex. Policy frameworks often overlook the realities faced by micro-entrepreneurs. Government programmes such as the Green Technology Financing Scheme (GTFS) and the National Energy Transition Roadmap (NETR) signal progress, but remain difficult to access. Perhaps, grass-roots support networks can bridge this gap. For example, peer learning among micro-business owners, free workshops hosted by agencies such as INSKEN, TEKUN Nasional and SME Corp, as well as mentoring programmes run by universities and NGOs, may offer practical guidance. Large corporations and financial institutions can contribute by integrating small suppliers into sustainable procurement programmes and designing green micro-financing products. By combining targeted policy support with community-driven knowledge sharing, micro-entrepreneurs can overcome barriers and build businesses that grow sustainably. Small steps for big impact Bringing sustainability to the grassroots does not require large capital outlays. It starts with a change in mindset. Simple resource-efficiency measures can yield immediate savings and lower environmental impact. For example, a mobile spa can monitor electricity use and gradually invest in energy-efficient appliances as revenue grows. A street vendor can cut water waste by installing taps or reusing rinse water for cleaning, while a home baker can plan baking schedules to minimise oven use and purchase ingredients in bulk to reduce packaging. Local sourcing helps in reducing cost and maintaining business stability by reducing fuel use and transportation costs and building strong relationships with nearby suppliers. These advantages become invaluable when global supply chains are disrupted. Waste reduction is another tangible opportunity. Sustainable practices such as reusing jars, bottles and packaging for deliveries lowers costs and waste; and composting organic waste or partnering with farms to turn food waste into animal feed diverts materials from landfills. Communicating these initiatives on social media and offering incentives (e.g. discounts to customers, who bring reusable containers) enhance brand reputation and strengthen customer relationships. These efforts also appeal to the large share of consumers, who prefer eco-friendly businesses. Progress tracking need not be sophisticated. Micro-entrepreneurs can track their monthly utility bills, the number of plastic bags saved and the proportion of goods sourced locally using a notebook, smartphone app or whiteboard. Analysing this data over time will reveal the financial benefits of their sustainable practices. Aligning efforts for lasting impact For Malaysia's micro-enterprise sector, the path to sustainable growth lies in aligning top-down support with bottom-up initiative. On the policy side, governments and institutions must integrate sustainability modules into MSME training, simplify access to green financing schemes and design grant criteria that reward micro-entrepreneurs for environmentally responsible practices. Such inclusivity is critical because micro-enterprises are the frontline providers, outsized influence on household consumption patterns. At the same time, micro-entrepreneurs themselves can lead the transition. By adopting simple sustainable practices as suggested above, they demonstrate that sustainability is not a luxury but a practical business strategy. This collaborative approach that pairs inclusive policies with intent-driven action, creates an ecosystem where sustainability becomes both accessible and profitable. It empowers micro-entrepreneurs to take ownership of the transition, while signalling to policymakers, financiers and corporations that grassroots enterprises are ready to be partners in Malaysia's green future. * Dr Dalilawati Zainal is a senior lecturer at the Department of Accounting, Faculty of Business and Economics, Universiti Malaya, and may be reached at [email protected] ** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
Arab News
6 days ago
- Business
- Arab News
Pakistan redefines microenterprises to include more firms, drafts policy for women entrepreneurs
ISLAMABAD: Pakistan has lowered the threshold for defining microenterprises to include companies with annual revenues of up to Rs30 million ($106,000) under the national Small and Medium Enterprise (SME) development framework, and has finalized a draft Women's Entrepreneurship Policy, the Prime Minister's Office said on Tuesday. The measures are part of a broader push by the government to revive the economy by expanding private-sector innovation and participation following years of economic distress. Pakistan's financial outlook began improving after securing several International Monetary Fund (IMF) loans and introducing structural reforms that stabilized macroeconomic indicators. Prime Minister Shehbaz Sharif chaired a review meeting of the Small and Medium Enterprises Development Authority's (SMEDA) steering committee to evaluate the performance of the SME sector. Officials briefed him on reforms aimed at enhancing the authority's institutional capacity and outreach. 'Companies with annual business up to Rs30 million have been classified as microenterprises and brought under SMEDA's scope on the instructions of the Prime Minister,' the statement said. 'The draft of the Women Entrepreneurship Policy has also been prepared and will soon be submitted to the federal cabinet for approval.' Other initiatives discussed during the meeting included the upcoming launch of a digital portal for women entrepreneurs and outsourcing of work related to SMEDA's credit scoring model, SME subcontracting legal framework and export enhancement strategy. SMEDA is also conducting a survey of 20 economic sectors in collaboration with the Pakistan Bureau of Statistics, the statement said. "Small and medium-sized enterprises hold a vital place in the country's development and economy," the prime minister said while addressing the gathering. "The government is working on a priority basis to promote small and medium-sized businesses," he added.
Yahoo
27-06-2025
- Business
- Yahoo
European Commission Yanks Proposed Anti-Greenwashing Rules on Eve of Final Negotiations
'We are now in a situation where we have to admit that Europe has failed,' Claus Teilmann Petersen, sustainability/stakeholder engagement and human rights manager at Bestseller, said of the European Union's omnibus package, somewhat deflatedly, ahead of the Global Fashion Summit in Copenhagen earlier this month. 'We cannot deliver what we set out to do. I'm pretty sure that we will get into a situation where the simplification will be deregulation.' Petersen words took on a prophetic air Friday after the European Commission revealed that it would withdraw a proposed law targeting nebulous or unfounded corporate environmental claims—a practice better known as 'greenwashing'—saying that legislative proposal, as it stands, goes against the executive arm's 'simplification agenda,' particularly regarding microenterprises. More from Sourcing Journal EU's Textile Recycling Excellence Project Creates New Blueprint Is Europe Ready for a Textile-to-Textile Recycling 'Tipping Point'? EU Watchdog Says Shein Violated Bloc's Consumer Laws 'Around 30 million micro-enterprises–96 percent of all companies— could be covered by the proposal if microenterprises were to be included,' Maciej Beresteck, a spokesperson for the European Commission, wrote in an email. 'This would distort the Commission proposal in a manner which prevents the achievement of the objectives pursued by the proposal, i.e., supporting the development of green markets, while preventing undue burden on the smallest enterprises.' The decision, which arrived ahead of the final negotiating round with member state representatives to solidify the deal on Monday, is yet another sign of Europe's so-called 'sustainability retreat' as the world's largest single market continues on a rightward swing that mirrors a similar about-face on progressive ideals that have been branded 'woke' and 'radical' in the United States. It also appeared to be a sudden and highly unusual one, considering how late in the rulemaking process this is happening. The move followed a letter on Wednesday from the center-right European People's Party seeking the proposal's retraction from the European Commissioner for the environment, Jessika Roswall, who is affiliated with the political bloc, and confirming that it would not support 'any trilogue outcome.' It was only recently, on the Global Fashion Summit's main stage, that Roswall talked about 'moving barriers to bridges to shape a more sustainable future where textiles, fashion and environmental care go hand in hand.' It's not 'just about rules,' she said, but about 'working together' to place 'better products' on the market. Roswall's office did not respond to a request for a comment. While the EPP said it supports protecting consumers from falling prey to environmental marketing spin, the green claims directive 'risks unduly hindering sustainability communication through procedures that are overly complex, administratively burdensome and costly,' including a 'fundamentally flawed' preapproval requirement that deviates from established internal market practices and is not being applied across sectors. 'There is, quite simply, no dedicated cost-benefit analysis or supporting data underpinning the ambitious system proposed by the GCD,' the letter said. 'Nor does the proposal convincingly demonstrate that the expected benefits of the regime would outweigh the significant costs and regulatory uncertainty it entails.' But Elisabeth von Reitzenstein, senior director of public affairs at Cascale, the multi-stakeholder organization formerly known as the Sustainable Apparel Coalition, said she was 'extremely' concerned about the European Commission's 'abandonment' of the green claims directive. It pointed to more 'soft-pedalling' on environmental requirements from the EU, she said, further degrading a Green Deal that sought to zero out the continent's carbon emissions by 2050 and marking a 'troubling' about-face for markets that 'once set the pace' on climate action. 'While not perfect, the green claims directive would have marked an important leap forward in enhancing transparency, ensuring a level playing field for businesses investing in progress, and providing clarity for consumers on the products they are choosing to buy,' von Reitzenstein said. 'Now we risk letting unchecked green claims proliferate and greenwashing go unchallenged. We may also see a continued risk of 'greenhushing' where companies are not able to communicate the great work they are doing in times of legal uncertainty.' Beresteck said that the European Commission remains committed to fighting greenwashing, adding that it will continue to work on making sure consumers are 'correctly informed' through policies such as the directive on empowering consumers for the green transition, which the EPP endorsed during a plenary vote in 2024 and is poised to go into force in 2026. While both sets of legislation aim to stave off greenwashing with fines up to 4 percent of an offending company's annual turnover, the green claims directive was supposed to clarify the other's rules and enforcement mechanisms, said Nusa Urbancic, CEO of the Changing Markets Foundation, a watchdog group that campaigns against greenwashing. Pulling it at this point would be a 'disaster,' she said, pointing to research that shows that nearly 60 percent of claims by fashion brands can be considered misleading or unsubstantiated according to guidelines from the United Kingdom's Competition and Markets Authority. 'Since the Commission and several other consumer agencies announced a clampdown on greenwashing, the market has slowly been moving in a better direction with dishonest claims being scrapped by companies,' Urbancic said. 'Reversing these efforts will not only undermine consumer trust but will also be a setback for companies that are really investing in environmentally friendly products and services at a time when the climate and biodiversity crises are accelerating.' Last month, EU ombudsman Teresa Anjinho said she had opened an investigation into the process behind the omnibus bill, following complaints by civil society organizations, including Anti-Slavery International, the Clean Clothes Campaign and the European Coalition for Corporate Justice, alleging that the European Commission had circumvented the necessary procedural requirements in its haste to table the amendments without conducting out a public consultation, a detailed impact assessment and a a 'climate consistency' assessment. 'Strong sustainability laws like the CSDDD and CSRD are key to the EU's competitive advantage in a global market where consumers and investors increasingly demand responsible corporate action,' the coalition said. 'We have seen time and time again that vague corporate promises aren't driving the change we need. Weakening environmental and human rights requirements is a step in the wrong direction.' Whether any recourse remains for the green claims directive—other then proceeding with negotiations—is less clear. It was this proposal that suggested using the Product Environmental Footprint, or PEF, as a harmonized tool to evaluate products across 16 environmental indicators, including freshwater, resource and land use. Nixing the legislation would also prevent the PEF from being incorporated into EU law through this particular route, though it continues to be referenced in the CSRD and the ecodesign for sustainable products regulation and could still be rolled into future legislation. For now, withdrawing the proposal risks damaging European credibility and leadership on climate action globally, said Thorfinn Stainforth, senior policy manager of EU climate policy at Environmental Defense Fund Europe, a nonprofit. 'This directive would have provided businesses with the certainty they've asked for and empowered consumers to make sustainable choices,' he said. 'Instead, we're left with continued ambiguity at a time when Europe could be providing the clear framework businesses need to accelerate the shift toward sustainable investments and environmental integrity.'
Irish Times
17-06-2025
- Business
- Irish Times
Small business owners ‘out of their depth' on tech skills critical for survival
Two-thirds of small businesses have said digital adoption is essential for their survival, but they are encountering 'significant issues' in attracting and retaining top digital talent as they compete with much larger companies . Lean BPI, an Irish digital growth consultancy for SMEs (small and medium-sized enterprises) and microenterprises, has published a survey that shows concerns among small enterprise owners about external threats to their businesses, along with issues regarding the adoption of digital technologies. Almost three-quarters (71 per cent) of small business owners reported that they struggle to retain talent due to competition from larger companies. As a result, the same proportion report a clear digital skills gap in their sector. Will rent reform make building apartments viable? Listen | 40:12 When assessing their own knowledge of digital technologies, 46 per cent of small business owners said they feel out of their depth. READ MORE With this in mind, 48 per cent reported that managing digital transformation is stressful and 43 per cent admitted they lack the confidence to drive digital change within their organisation. One in four small firm owners said they face pushback from their teams on embracing new technologies, while almost one in five said they are not providing sufficient training for their team on the use of digital technologies. In addition, 59 per cent of small businesses said they are worried about the impact of tariffs on their organisations. The research of 100 business owners in Ireland, running companies with 20 employees or fewer, was carried out by Censuswide on behalf of Lean BPI. [ EU must keep 'nerves of steel' in talks with US on tariffs, Costa says Opens in new window ] Lean BPI managing director John O'Shanahan urged small business owners to access digital grants from their Local Enterprise Office. 'Given their size, small businesses are naturally more vulnerable when there are economic shocks, which the proposed US tariffs would undoubtedly cause,' he said. 'While there will always be external challenges, it is how small businesses adapt to them that will determine their survival and success. 'For now, business owners are rightly concerned about tariffs, but inevitably, more challenges await – along with plenty of opportunities. The difference will be in agility and how businesses use technology to respond smartly and with speed.'
Free Malaysia Today
09-06-2025
- Business
- Free Malaysia Today
Samenta calls for higher SST threshold to help SMEs
Samenta said many small businesses are already struggling with high costs, weaker customer spending and uncertainty in export markets. PETALING JAYA : The Small and Medium Enterprises Association of Malaysia (Samenta) has called on the government to raise the sales and services tax (SST) threshold or exempt micro and small enterprises to protect them from financial pressure when the The Small and Medium Enterprises Association of Malaysia (Samenta) has called on the government to raise the sales and services tax (SST) threshold or exempt micro and small enterprises to protect them from financial pressure when the revised tax starts on July 1. Samenta chairman William Ng said the current threshold of RM500,000 in annual turnover should be raised to RM2 million so that only medium and larger businesses are affected. He said that many small businesses are still dealing with high operating costs, weakening consumer demand and uncertainty in export markets — conditions that could get worse after the halt in US tariffs ends on July 8. 'Against this backdrop, revising the SST without sufficient exemptions or a higher threshold for SMEs risks compounding the cost burden on businesses that are least equipped to absorb it,' he said in a statement today. William Ng. 'This impact is not limited to raw material costs but extends to rent and business-to-business services that will now fall under the SST's expanded scope. 'These increases will almost certainly be passed on to consumers, further driving up the cost of living.' Ng also urged the customs department to immediately issue sector-specific guidelines to help SMEs determine their tax obligations under the expanded scope. 'Without clarity, many SMEs risk falling into unintentional non-compliance, despite the enforcement grace period until the end of 2025,' he said. He also asked for clarification on whether the tax should be applied based on when invoices are issued or when payments are received, especially for invoices sent before July 1. While supporting the idea of a fair and progressive tax system, Ng also criticised the lack of meaningful consultation with stakeholders. 'While we were given a briefing on the expanded SST, they cannot consider this a consultation when it is presented as 'fait accompli',' he said.
