Sustaining growth and profitability of SMEs

Three renowned experts shed light on a socially conscious approach to sustainable growth and profitability to a large gathering of small and medium enterprise business leaders last week.

This was the first in what is expected to be a series of novel seminars titled ‘Living Business’ that was organised by HSBC. The theme for the inaugural seminar was ‘The Hidden Path to Profit’ and the chief guest was Dr Ranee Jayamaha, Deputy Governor, Central Bank.

Sena Peiris, Director of the National Cleaner Production Centre, kicked off the session introducing a triple bottom line approach to business. “Ninety four per cent of resources used in the manufacture of goods and services do not appear in the final product”, he remarked. Peiris went on to explain that the new thinking of businesses is not to ignore waste, but attempt to prevent or reduce consumption at the outset and to follow a process of recycling, treating and disposing of waste. He urged businesses to change their mindset towards waste management as it, too, can help save money if proper resource optimisation methods are followed, according to an HSBC statement.

Prof Ajith de Alwis, Head of the Department of Chemical and Process Engineering at the University of Moratuwa who startled the audience with some alarming facts about energy consumption against the profitability equation of businesses, outlined the country’s inefficient energy consumption pattern and called for an energy policy within businesses with top management’s commitment. He also presented an overview of simple and attainable energy management measures that businesses could adopt that would lead to the improvement of bottom line.

Ravi Fernando, Director, Strategic CSR Futures (Pvt) Ltd and Director, Corporate Branding and Strategic CSR, MAS Holdings, instilled hope among the audience in the possibility of running an environmental- and people-friendly business. He presented the success of stories of Kelani Valley Plantations and MAS Holdings in setting up a strategic CSR framework with top management’s commitment.