The Green Revolution in Local Business

In colorful Colorado, the grass turns green, and flowers bloom as the summer light melts away the snow. It becomes bustling with nature and filled with life as deer graze in the forest and birds chirp in the blue skies. However, behind the scenes, eco-conscious businesses play a crucial role in preserving that beauty. One such example is Cabinetworks Group, a Colorado-based cabinet manufacturer that implemented a dust collection control project to improve capacity and reduce electricity consumption.

Other small eco-businesses, such as Reformation in Los Angeles, Straw and Wool in Phoenix, Lillstreet Art Center in Chicago, and Fillaree in North Carolina, are among the many across the country that have begun to focus on a growing trend: the rise of eco-friendly small businesses driven by both consumer values and market forces.

For local businesses, “eco-friendly” can encompass sustainable packaging, locally sourced materials, the use of renewable energy, low-waste or zero-waste practices, and the production of sustainable products. According to Forbes, 81% of small business owners implemented sustainable practices in 2024, up from 75% in 2023.

So why the shift?

Today’s consumers — especially millennials and Gen Z — are prioritizing sustainability in their purchasing habits. Meanwhile, big corporations struggle to implement sustainable practices and often fall prey to greenwashing, where companies falsely present their products or operations as more environmentally sustainable than they are. In contrast, small businesses are uniquely positioned to act authentically. Governments and local municipalities provide incentives, such as tax breaks and grants, to further support this transition towards sustainability. Beyond helping the environment, however, eco-friendly small businesses also create a significant economic impact. Green businesses are often labor-intensive, creating roles in logistics, customer education, and sustainable production. They also stimulate supply chains, encouraging demand for local and ethical sourcing, benefiting farmers, recyclers, and clean-tech providers. They grow 30% faster than average small businesses and save up to 30% in energy costs in the long term, all while helping the environment.

Small businesses can start implementing efficient, eco-friendly practices in numerous ways:

1. Start small: Consider small changes that can be made, such as switching to recycled packaging or reducing energy consumption by upgrading to more efficient lighting and appliances.

2. Rethink supply chains: Consider sourcing from more local and sustainable suppliers or choose vendors with eco-certifications such as USDA Organic, Fair Trade, or Energy Star.

3. Offer refill or reuse programs: encourage customers to bring their containers, sell products in bulk, or use minimal packaging.

4. Digitize to save resources: Use paperless systems for receipts, invoicing, and marketing or host virtual meetings to reduce travel-related emissions and costs.

5. Green your workspace: By installing energy-efficient systems, composting food waste, recycling office materials, and using non-toxic, biodegradable cleaning products, simple, everyday activities can cause a greater impact in the long run.

6. Measure and communicate impact: Simply stating that a business is implementing eco-friendly measures is ineffective and can lead to greenwashing. Through tracking energy usage, waste reduction, or emissions, companies cannot only identify areas for improvement but also demonstrate the actual impact on consumers.

That said, eco-friendly entrepreneurship isn’t without challenges. Higher expenses, complex production methods, and higher pricing for consumers make business difficult, especially when already working with limited resources. However, the incentives in place help to offset these costs. For example, the Federal Investment Tax Credit (ITC) enables businesses to deduct up to 30% of the cost of installing a solar energy system from their federal taxes, resulting in significant energy cost savings. Additionally, carbon offset programs can improve customer loyalty by up to 20%.

Beyond sustainability, eco-friendly small businesses serve as engines of economic innovation, resilience, and community strength. By starting green ventures in communities nationwide and globally, companies can help shape environmentally conscious consumer habits and build values-based economies, allowing environments like Colorado’s to continue thriving.