Barriers and motivators to the adoption of energy savings measures for SMEs

This study reports on the motivators and barriers for small- and medium-sized enterprises (SMEs) to adopt energy savings measures. Our results are based on an empirical analysis of the performance of 289 SMEs that participated in a government run business sustainability program in Australia, the ClimateSmart Business Cluster Program, initiated in 2009. While most of the existing literature suggests that a lack of capital is an important barrier to the adoption of energy efficiency measures by SMEs, our results reveal that barriers are often highly idiosyncratic to each SME and mostly related to the individual resource endowment of the business. Barriers identified in our study fall into 24 categories and include internal challenges such as no immediate return of investment, a lack of management support, staff and knowledge, or limits to the ability to implement changes within the business. Important motivating factors for the participating businesses were primarily financial and compliance-driven objectives. The design and implementation of any sustainability program will therefore require a management of barriers within the scope of SMEs and the assistance of knowledge of the motivating factors. We discuss recommendations and implications for policy-makers regarding the design of meaningful SME programs and compliance objectives and outline pathways for future research.