Understanding more about business owners and how they use energy
The consumption of energy and resources is an important part of almost any business model, and how business owners approach energy use can vary widely.
A business owner’s choices around energy use and sustainability initiatives also have marketing implications, as today’s customers often seek out businesses that align with their values.
With our energy use survey, we set out to determine the range of attitudes about energy and sustainability held by small business owners, as well as their perceptions of what their employees and customers value in an employer or business.
Small Business Owners’ Attitudes About Their Business Energy
Depending on what services or products a business provides, its energy needs may be a more significant percentage of the operating budget. Small business owners also start their own business for a variety of reasons, and all of these factors can influence how the owner approaches energy use and the methods they choose to implement to promote sustainability.
We asked a few questions to find out what motivates small business owners when starting a business, adding sustainability measures and deciding on an energy provider.
1. Which of the following best describes your current attitude toward your business?
The business owners surveyed are a practical and pragmatic group. Nearly half of the respondents look to their business to help them make a decent living or as much money as possible.
Making a difference in the world, contributing to the community and building something bigger than themselves were also important.
The data suggests there are two distinct groups we call Pragmatists and Sustainability Enthusiasts. Pragmatists are highly practical and focus on financial efficiency, while Sustainability Enthusiasts may be willing to relinquish some profits to implement sustainability measures they value.
2. Running an environmentally sustainable business is important to me.
According to the results, small business owners care about running a sustainable business.
Of the small business owners surveyed, over three quarters -- 76% -- say that running a sustainable business is important to them.
While only about 3% of business owners survey said that sustainability was not important to them, about 21% of small business owners said that they haven't really thought about how sustainability can impact their business.
Sustainability: an opportunity for Pragmatists
If you take a bottom-line focused approach to running your business but haven’t thought through how implementing sustainable practices could improve profitability, take a look at some of the benefits.
Many customers look for businesses that value sustainability, and a customer who feels good about buying your products or using your services will likely be a repeat customer. Also, many practices that reduce your energy consumption can actually lower your operating cost over time.
Energy choice: an opportunity for Pragmatists
Make sure you are aware if you have the option to choose energy providers. See the map of areas that Constellation serves for quick reference.
Look at value, not just price. An attractive price is important, but also consider the supplier’s ability to help you analyze your current energy usage and strategize for possible future savings.
Questions to keep in mind:
- How does the energy supplier help you save money overall, not just on price?
- Does the supplier add value in other ways such as with tips, audits and energy plans?
- Are renewable energy plans available?
Small Business Owners’ Use of Sustainability-Promoting Technology
Advances in smart technology have made it easier to automate processes that promote sustainability and improve the over efficiency of most small business. Energy choice can also allow small business owners to pick the type of energy that best fits there sustainability goals.
We asked our respondents what type of energy they use in the operation of their business as well as what smart technology they have started to use.
1. What type of energy does your business use?
About 85% of surveyed business owners use electric or natural gas as their primary energy source.
Nearly 11% of business owners reported using renewable energy sources such as wind and solar, which is on par with national consumption estimates for 2017.
Other reported sources of energy include everything from wood to propane and oil.
Your energy source: an opportunity for Pragmatists
Investigate the potential to lower costs with renewable energy. Choosing a renewable energy source could appeal to your customers, and you may even qualify for renewable energy tax credits depending on your business type and location.
Energy suppliers like Constellation may also offer renewable energy plans for your small business.
Your energy choice: an opportunity for Sustainability Enthusiasts
If you are already using all the renewables you can, make sure you promote these sustainability measures in any customer communication such as newsletters or even on-site signage.
Communicating your shared values can strengthen ties to your customers and community.
2. Which of the following "smart" devices do you use in your business?
Nearly half of survey respondents said that they were not using smart connected devices in business.
Digital assistants such as Amazon Echo and Google Home are the top smart devices showing an increase of 9 points over the previous survey, and smart security systems ticked up by 8 points from the Q4 2018 survey. And for all the talk of “Thermostat Wars”, the use of smart thermostats increased by 5 points with 17% of business owners reporting usage.
Business owners with multiple physical locations for whom sustainability is not a primary focus are more likely to use smart security systems and RFID barcoding systems to minimize theft and inventory loss.
Smart technology: an opportunity for Pragmatists
Explore the capabilities of smart devices. While still an emerging area, you can gain a competitive advantage by jumping in early.
The energy savings and productivity gains may more than cover the initial setup costs.
Energy-saving light bulbs: an opportunity for Pragmatists
Switch to energy-saving bulbs for lighting across all of your business locations. These bulbs seem more expensive up front, but LED light benefits can decrease your energy usage by more than 75% and last longer than traditional incandescent bulbs. And if your business allows it, implement a noticeable recycling program.
Taking steps to sustainability will likely be great for your brand’s reputation in the eyes of sustainability-conscious customers.
Energy audits: an opportunity for Sustainability Enthusiasts
Consider conducting an energy use audit. You’re already committed to running a sustainable business, but a fresh pair of eyes may find things you missed.
Addressing these oversights with additional sustainable workplace practices can save you even more on your energy usage.
Perception of Customer & Employee Attitudes Toward Sustainability
Just as the attitudes of small business owners can vary concerning energy usage and sustainability, so can the attitudes of employees and customers. We wanted to know how important environmental sustainability was to employees and customers, as perceived by the owners of small businesses.
In a competitive environment, having a business that adequately addresses sustainability issues could close the deal when it comes to a potential customer or well-qualified job candidate.
1. My customers care about whether my business is environmentally sustainable.
Fifty-six percent of owners say their customers care about the small business’s sustainability practices. Interestingly, that’s lower than the 76% of owners who care about sustainability themselves.
Nearly one fourth of survey respondents -- or 23% -- say they aren’t sure how their customers feel about the environmental sustainability of their business.
Customer perceptions: an opportunity for Pragmatists
If you are in the 23% who are not sure how their customers feel about sustainability practices, conduct a survey to find out.
Depending on your level of customer commitment, there may be more value in implementing sustainability measures than you think.
Customer awareness: an opportunity for Sustainability Enthusiasts
Are your customers or potential customers fully aware of your commitment to sustainability? Make sure you communicate this part of your business’s culture in all marketing materials.
This applies to B2B businesses as well. When bidding for a contract, a perceived cultural fit with the client could be what distinguishes you from the competition.
2. I have employees who are environmentally conscious.
A majority, or 71% of respondents, say their employees are environmentally conscious. This is important because employees tend to be attracted to employers with shared values, creating a stronger employer-employee bond.
Yet nearly a quarter -- 24% -- of small business owners surveyed say they simply are not sure about employees’ attitudes toward sustainability.
Employee engagement: an opportunity for Sustainability Enthusiasts
Your employees may be even more committed to sustainability than you are. Put this to work by implementing employee engagement ideas. One way to start could be by implementing a forum where they can share ideas about improving your sustainability practices.
They may come up with ideas that are good for the environment and your bottom line.
Retaining employees: an opportunity for Pragmatists
Finding the right employees can be hard, and with unemployment on a 10-year downward trend, you may find that the best candidates are actually interviewing you.
Implementing and highlighting environmental sustainability in your job postings could make your business or company more attractive to qualified job seekers. Being able to hire and keep the right people is always good for the bottom line.
Environmental sustainability is good for business.
This year’s survey shows that promoting environmental sustainability is becoming increasingly important. Finding and implementing the right practices can be a strategic business decision for both Pragmatists and Sustainability Enthusiasts.
We will continue tracking the attitudes of small business owners about energy and environmental sustainability this year, so check back to see how, and if, anything has changed.
Learn more about the respondents in the Small Business Energy Report
If you're looking to learn more about the Small Business Energy Repot, visit our respondent data for a breakdown of industries, and read about the types of businesses our survey participants operate.
