Aug. 28, 2008 - Entrepreneurs are being slow to recognize the advantages and opportunities afforded by sustainable business practices, according to a new Deloitte report. The survey of British entrepreneurs finds that less than a third (29%) are currently undertaking any carbon reduction initiatives - despite more than a quarter of those surveyed conceding that addressing environmental challenges now will present new opportunities to exploit new products and services.

In fact, 38% of respondents say they are "many years away" from introducing changes to reduce their carbon footprint. A third say they will do so in the next one to two years.

Most of the green initiatives being employed by U.K. entrepreneurs involve waste reduction, recycling, and energy efficiency. More complex initiatives, such as reducing greenhouse emissions, conserving water, and imposing green requirements on suppliers are less popular, however. The reason? Such programs require additional resources to get off the ground - resources fast-growing startups tend to lack, Deloitte suggests.

Even so, mindset appears to be the greatest barrier, according to Richard Crane, entrepreneurial business partner at Deloitte. "While there are some notable exceptions, many entrepreneurs still see environmental initiatives as representing a cost to the business rather than an opportunity," he says.

"The reality is that there are two broad reasons why entrepreneurs should have green issues firmly on their agenda," Crane continues. "Firstly, environmental factors are increasingly influencing the buying decisions of both businesses and consumers. Secondly, the growing pressure on businesses and individuals to reduce their environmental impact inevitably brings opportunities for new products and services to help them meet this goal."

"The innovative nature of entrepreneurs combined with their agility to respond to market opportunities quicker than larger corporates, should place them in an enviable position to capitalize on environmental challenges," he concludes.