Gift company says “green” is a good way for SMEs to grow.
Imagine for a minute you’re a small or medium business (SME) – with the cost-of-living crisis biting so hard, you’re struggling to keep the lights on and pay staff.
Are climate change and sustainable practices top of mind? Probably not. Recent surveys have found that climate change action is a low priority for many small businesses in tough economic times – last year’s New Zealand SME Banking Council survey commissioned by Prospa revealed that one in four smaller SMEs were more likely to feel that sustainability had no relevance to their business.
Bonita Labuschagne believes it doesn’t have to be that way. Together with her husband Eugene, Bonita founded Ecosource in 2022. The leading provider of sustainable and ethically sourced corporate gifts and promotional products in the Asia Pacific region, Ecosource is committed to help make the world a better place – and is taking big steps to do so.
Without the help of business loan specialists Prospa, Labuschagne says her business growth may not have made it past the first hurdle – but is adamant that being sustainable doesn’t have to carry a big price tag. Being sustainable is, she says, sustainable even on a low budget.
That includes stocking eco products from around the globe, including notebooks made from coffee husks and elephant dung, t-shirts made from biodegradable fabrics and pencils with seeds.
“Instead of using plastic promotional pens, opt for eternal pencils that you can use for a lifetime. These not only last longer than ink but are also a more sustainable choice,” she says.
As a small business, Labuschagne understands better than anyone the financial pressures on SMEs – but believes that even small, incremental changes can have a positive impact: “A significant part of our mission is to educate businesses about their purchasing choices. While a fair-trade T-shirt may be slightly more expensive than a cheaper alternative, it is ethically and sustainably produced, ensuring that the farmers and workers involved are fairly compensated for their labour.
“When staff understand the production processes and their environmental impact, they are more likely to make sustainable choices.”
Buying local is another practice she believes benefits fellow SMEs. “That’s how we help each other at the end of the day. For example, we buy our stock overseas and brand it here using local companies. It’s more expensive to do that but using local businesses is the right thing to do.”
Bulk purchasing is another change that reduces packaging waste and transport emissions. “Switching over to electronic billing and invoicing can also save a business paper,” she says.
A key part of establishing Ecosource was creating partnerships with sustainable producers around the world: “Shortly after we started, our phone began ringing at all hours with global suppliers eager for us to stock their products. This was fantastic, but it meant we had to act quickly to secure exclusive partnerships before our competitors did.”
That’s why having a reliable business funder was invaluable: “I approached the bank but they were very slow and I had to wait for an appointment. Luckily, I found Prospa, who were so quick and within two minutes I had my answer.
“You can actually speak to a person. They not only helped us with cash flow so that we could secure exclusive partnerships with suppliers but also enabled us to create a website and have enough stock so we could showcase our business at expos. People need the opportunity to see and feel the products.”
Prospa, she says, was “a game-changer” for Ecosource: “They’re now my go-to whenever I need financial assistance. I don’t think I’ll move anywhere else because of the level of service I get and the speed at which they respond to requests. In my industry, you have to be on top of things and Prospa enables me to do that.”
Labuschagne admits she’s always been on a green journey but says her values aligned with her business after a visit to a local beach with her two sons.
“Instead of building sandcastles, my sons spent the time picking up plastic rubbish, worried about it getting into the ocean and injuring birds. As a mother and as a business owner, I realised I had to be a role model for them and make a change.”
She has a long history in the promotional gift space, both in her native South Africa (where she and Eugene owned a promotional company for 15 years) and then in Auckland when the family emigrated in 2018. When she lost her job during the pandemic, she saw the opportunity to marry her twin passions of sustainability and business.
“We noticed a gap in the market for a business dedicated solely to driving positive change,” she says of the company that started with 200 fully sustainable products (it has since grown to 2,500 eco-friendly alternatives).
Her reach now extends from Australasia to clients in Japan, Europe, South Africa and the Middle East.
“We’re excited about helping clients on their green journey, no matter how small the change is. Our vision for Ecosource is to be more than just a promotional company, we actually want to be able to make a difference.”
To learn more about New Zealand’s small business lending specialist, visit Prospa today.