Eco-design Audit for Building Competitive Advantages of SMEs

Abstract

Today the concept of eco-design is growing. Eco-design is a solution for business innovation. Eco-design which is based on the Quadruple Bottom Line not only provides added value in the form of profit for the company, but also preserves the environment, nurturing the people around it. Small Medium Enterprises (SMEs) are growing a lot in developing countries, one of which is as a solution to create jobs. However, many SMEs do not last long, do not develop because they do not have a competitive advantage and several problems they face. Auditors through eco-design audit services try to provide solutions to increase competitive advantages. Our research tries to bring together the problems of SMEs with auditors, to find solutions through an eco-design audit approach. Our research is qualitative research with a phenomenological approach. We collected primary data through focus group discussions and interviews with SMEs and auditors. The results of our study found that the main problems of SMEs are lack of capital and innovation. The eco-design audit will focus on business innovation from an eco-design point of view to create innovative business proposals to attract investors and creditors. Other findings are that SMEs are not yet high awareness of eco-design audits, there is no eco-design audit handbook and the need for eco-design awards to stimulate SMEs to increase eco-design audits.