AUGUST 8 — In Malaysia, sustainability narratives often bring to mind images of large corporations reporting on environmental, social and governance (ESG) metrics. Public-listed multinationals dominate headlines because investors, regulators and international supply chains are pushing them to clean up their act. But meaningful, progress must start closer to home, for examples, among street vendors in Penang, mobile spa owners in Shah Alam and home bakers in Kuantan.
Micro-enterprises form the backbone of Malaysia’s economy. SME Corporation Malaysia reports that they represent nearly 70 per cent of the micro, small and medium-sized enterprises (MSMEs). Their impact is especially visible in informal markets and lower-income communities, where jobs and incomes depend on tiny retail kiosks, food stalls and home-based services. However, studies by SME Corp and local universities reveal that these operators often view sustainability as a distant concept meant for “big business” only.
Why sustainability matters at the grassroots?
From a management perspective, sustainability is fundamentally responsible business. It involves reducing waste, using resources efficiently and strengthening relationships with stakeholders, especially customers and suppliers. When implemented well, these initiatives help micro-entrepreneurs lower operational costs and improve business stability. Whether they realise it or not, they already practise many of these behaviours. For example, switching off appliances when not in use, reusing packaging, sourcing ingredients from local suppliers or car-pooling deliveries to save fuel. Nevertheless, they seldom disclose these practices as “sustainability”. Recognising these practices as part of a sustainability strategy legitimises what owners do intuitively and encourages them to build on it.
Evidence suggests that consumers reward sustainability efforts. A global survey by Nielsen found that roughly 73 per cent of consumers would definitely or probably change their consumption habits to reduce environmental impact. Although a global statistic, it resonates in Malaysia, where many young consumers seek brands that align with their values. Communicating environmentally responsible actions (e.g. using recycled packaging, supporting local farmers or offering discounts for reusable containers) can strengthen customer loyalty and attract new patrons.
The financial benefits are tangible. For example, turning off lights and unplugging equipment during non-operating hours reduces electricity bills. Purchasing ingredients in bulk or coordinating orders with neighbouring businesses lowers transportation costs. Sourcing from local suppliers cuts emissions and keeps money circulating within the community, which in turn supports the customer base. These efficiency gains improve cash flow and margin stability, which are critical issues for micro-entrepreneurs, whose profits are often thin.
Sustainability is fundamentally responsible business. It involves reducing waste, using resources efficiently and strengthening relationships with stakeholders, especially customers and suppliers. — Picture by Sayuti Zainudin
Overcoming barriers through support networks
Micro-entrepreneurs often grapple with limited education, digital access and razor-thin profit margins. These constraints make sustainability seem costly and complex. Policy frameworks often overlook the realities faced by micro-entrepreneurs. Government programmes such as the Green Technology Financing Scheme (GTFS) and the National Energy Transition Roadmap (NETR) signal progress, but remain difficult to access. Perhaps, grass-roots support networks can bridge this gap. For example, peer learning among micro-business owners, free workshops hosted by agencies such as INSKEN, TEKUN Nasional and SME Corp, as well as mentoring programmes run by universities and NGOs, may offer practical guidance. Large corporations and financial institutions can contribute by integrating small suppliers into sustainable procurement programmes and designing green micro-financing products.
By combining targeted policy support with community-driven knowledge sharing, micro-entrepreneurs can overcome barriers and build businesses that grow sustainably.
Small steps for big impact
Bringing sustainability to the grassroots does not require large capital outlays. It starts with a change in mindset. Simple resource-efficiency measures can yield immediate savings and lower environmental impact. For example, a mobile spa can monitor electricity use and gradually invest in energy-efficient appliances as revenue grows. A street vendor can cut water waste by installing taps or reusing rinse water for cleaning, while a home baker can plan baking schedules to minimise oven use and purchase ingredients in bulk to reduce packaging.
Local sourcing helps in reducing cost and maintaining business stability by reducing fuel use and transportation costs and building strong relationships with nearby suppliers. These advantages become invaluable when global supply chains are disrupted. Waste reduction is another tangible opportunity. Sustainable practices such as reusing jars, bottles and packaging for deliveries lowers costs and waste; and composting organic waste or partnering with farms to turn food waste into animal feed diverts materials from landfills.
Communicating these initiatives on social media and offering incentives (e.g. discounts to customers, who bring reusable containers) enhance brand reputation and strengthen customer relationships. These efforts also appeal to the large share of consumers, who prefer eco-friendly businesses. Progress tracking need not be sophisticated. Micro-entrepreneurs can track their monthly utility bills, the number of plastic bags saved and the proportion of goods sourced locally using a notebook, smartphone app or whiteboard. Analysing this data over time will reveal the financial benefits of their sustainable practices.
Aligning efforts for lasting impact
For Malaysia’s micro-enterprise sector, the path to sustainable growth lies in aligning top-down support with bottom-up initiative. On the policy side, governments and institutions must integrate sustainability modules into MSME training, simplify access to green financing schemes and design grant criteria that reward micro-entrepreneurs for environmentally responsible practices.
Such inclusivity is critical because micro-enterprises are the frontline providers, outsized influence on household consumption patterns. At the same time, micro-entrepreneurs themselves can lead the transition. By adopting simple sustainable practices as suggested above, they demonstrate that sustainability is not a luxury but a practical business strategy.
This collaborative approach that pairs inclusive policies with intent-driven action, creates an ecosystem where sustainability becomes both accessible and profitable. It empowers micro-entrepreneurs to take ownership of the transition, while signalling to policymakers, financiers and corporations that grassroots enterprises are ready to be partners in Malaysia’s green future.
* Dr Dalilawati Zainal is a senior lecturer at the Department of Accounting, Faculty of Business and Economics, Universiti Malaya, and may be reached at [email protected]
** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
