Why it pays to ensure your small business is part of the circular economy

Reduce, reuse, recycle has long been a mantra for managing waste and protecting the planet, and small businesses are expected to play their part.

If this is a new area for you, it may be time for a rethink of your policies and practices. Product stewardship – being able to account for the full lifecycle of the goods you sell – is an increasingly central aspect of being in business in Australia.

More customers are contemplating the social and environmental impact of their purchases and making sustainability a factor in their decisions, according to research from Monash Business School.

The findings show almost a third of shoppers say they frequently or very frequently look for sustainable products when making a retail purchase, while a further 38 per cent do so occasionally.

Stepping into the circular economy

There’s plenty of scope for small businesses to move away from the traditional take, make, dispose business model, according to sustainability consultant Caterina Sullivan.

“Due to their agility and ability to innovate, they have unique opportunities to adopt the

circular economy practices of keeping materials, products and resources in use for as long as possible,” Sullivan says.

Here are some of the ways your small business can do its bit to reduce environmental degradation, landfill stress and greenhouse emissions.

Design to last

Combatting the throwaway mentality starts with rethinking the way products are designed. Striving to make sure the items you manufacture, or sell, are durable, repairable and recyclable will help keep them out of landfill for longer, Sullivan says.

Adopting this approach has generated big benefits for boutique craft supplier Fancy Yarns Australia. Increasing the number of recycled and eco lines in its range in recent years has resulted in revenue growth and more meaningful interactions with knitters and crocheters who participate in slow fashion and practise mindfulness in their craft.

Use fewer resources

Adopting more efficient practices can be good for both the planet and your bottom line. Looking for ways to reduce your use of resources during the production process is a good place to start.

“There may be opportunities to minimise your water and energy consumption or switch to sustainable raw materials,” Sullivan says.

Implement re-use and recycling programs

Setting up recycling programs helps to show your small business is serious about sustainability. It also helps to make it easier for your customers to do the right thing.

“Engage with them in returning products for refurbishment, resale or recycling,” Sullivan says.

Collaborate with supply chain partners

It’s easier to effect significant, lasting change when you operate as a team. Choosing to work with vendors that share your sustainability goals can amplify the efforts you’re making in your own business.

“Educate suppliers and logistics providers about why this is important to your business and bring them on the journey with you,” Sullivan says.

Cover to sustain your business 

Running a sustainable, successful small business can mean having insurance policies in place to protect your operations from the unexpected. If you’d like to discuss your needs or review your cover for 2025, contact your Steadfast broker today.