When Sam Turner and his father, Barrie, launched Cotswold-based Jutexpo in 2002, their jute bags offered an environmentally friendly alternative to plastic bags, responding to a change in priorities among both companies and consumers.
Ten years on and the importance of making sustainability a key part of business for all SMEs has grown. Society as a whole has become more ethically aware, consumers increasingly want to know that their spending power is being re-invested in the people, environment and infrastructure responsible for creating the products they buy. For companies prepared to innovate, such as by promoting carbon-reduction measures or ensuring suppliers are paid a fair price, new opportunities are rife.
Right from the beginning, offering ethical solutions was essential to Jutexpo's success. "Sustainability is very important – but people don't always understand what sustainability is," says Sam. "It's not just about the environment – it's also about jobs and social changes. It's about consumers who are proud to be seen with our bags as it's something they've invested in."
Years spent in India meant Sam's father had worked closely with the jute industry and had developed strong relationships and a supply route with the mills. "My dad had been working in India near Kolkata and planned to come back to the UK to retire. At the time Ireland had just introduced a plastic bag tax and we recognised the opportunity for jute bags," says Sam.
Jutexpo now has operations in both the UK and India where the jute plant is grown by the company's exclusive supply partner, Ganges Jute PVT Limited, based in Bengal. Through the partnership Jutexpo looks after the whole supply chain, from bales of jute through to the finished product, and employs more than 5,000 people. By working closely with its Indian partner in this manner Jutexpo aims to make the biggest difference, recognising that social and economic sustainability is a global issue.
As jute is traditionally farmed in India, the plant is grown in similar conditions to organic farming. There is crop rotation, no pesticides and nothing is genetically modified.
"Consumers are proud to be seen with our bags"
One of Sam's proudest moments since the inception of Jutexpo is when he was in India visiting the factories where the bags are made. "One of the girls stitching the bags called me over and showed a photo of her cousin in Bradford holding one of the bags she had made," he explains. "She was very proud what she had made had reached her family in the UK and that made me proud too. It makes you realise the responsibility you have in keeping the business going."
When it comes to choosing suppliers, larger companies are increasingly using sustainability as a factor in the tendering process, therefore a sustainable business can have a competitive advantage when it comes to winning new business.
Get the right support
For Jutexpo, then, being truly sustainable has enhanced its commercial strength. From small roots the business now has a turnover of more than £6m and supplies its reusable carrier bags to supermarkets such as Asda, Sainsbury's, Tesco and Waitrose, as well as independent retailers and charities including The National Trust and Red Cross.
However, Sam says businesses need to demonstrate they are sustainable through processes and audits – not just by claiming to be sustainable – and there is a need for transparency. "It's key that Lloyds TSB understands sustainability," says Sam. "If they didn't then they wouldn't understand what our business is all about. Lloyds TSB has been fantastic and helped our business grow in a time where economic conditions are challenging."
And, like any small or medium sustainable business, having the right banking support is vital to be able to meet orders and keep customers. Sam says Jutexpo switched to banking with Lloyds TSB because of the support it offers small businesses.
"Lloyds TSB has helped us grow quickly and offers us a range of finance options including invoice discounting, through Lloyds TSB Commercial Finance. This helps us manage our cashflow as it gives us access to our money quicker than waiting for our invoices to be paid," he explains. "The support is fantastic. We also have access to Enterprise Finance Guarantee (EFG), which have helped us with capital to develop the business.
Jutexpo's relationship manager at Lloyds TSB, David Preston, has helped the business find the right type of funding at different stages of the business's development.
"We speak to Lloyds TSB every month and meet for a day every two or three months. They are able to provide experience and we regard them as part of the management team – their views are valued," says Sam.
Find out more about invoice finance and Enterprise Finance Guarantee Loans.
More information on sustainability in business can be found here.
This content is an advertorial produced by Guardian Professional to a brief agreed with Lloyds TSB, part of the Lloyds Banking Group.
Lending is subject to a satisfactory credit assessment. Lloyds TSB Commercial is a trading name of Lloyds TSB Bank plc and Lloyds TSB Scotland plc and serves customers with an annual turnover of up to £15M. Authorised and regulated by the Financial Services Authority under numbers 119278 and 191240 respectively. Lloyds TSB Commercial Finance is part of the Lloyds Banking Group.
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