What are SMEs?

Small- and Medium-Size Enterprises (SMEs) form the bedrock of the Canadian economy and society, yet, in the context of sustainable development and action to mitigate climate change, they have been overlooked in comparison with other groups such as citizens, large corporations and policymakers. Even though individual SMEs have a smaller impact than larger businesses or regulators, taken collectively, they hold a central position in our economy and society, employing around 90% of the private workforce in the country.

How do SMEs differ from large businesses, and what are the implications?

Compared to larger businesses, SMEs face unique challenges and opportunities that remain poorly understood. SMEs thus present distinct opportunities to drive meaningful change. For instance, while they are typically resource constrained, SMEs are also nimbler and thus better able to act entrepreneurially. In addition, unlike publicly traded companies, SMEs are privately owned and often guided by the value systems of their leaders. Whereas climate change will lead to unavoidable and at times devastating loss and damage, it will also create economic opportunities as the world reorganizes and pivots towards solutions. SMEs, as small and nimble organizations, are poised to adapt quickly and readily to this new business environment, developing new products, processes and services that will be both environmentally sustainable and economically viable.